Beginners Guide to Obtaining Small Business Financing
When starting your business it is imperative that you understand the proper way to set up your business for maximum exposure. After filing your business entity, take the time to list the business phone number in various telephone directories. You will want to list your telephone number with Google local, , , Yahoo Local, and other directories you can find to list your business address and telephone number. If you have not opted to purchase a business line that would be listed with your local telephone company this is a great way to have your personal phone number associated with your business.
After you’ve obtained your employer identification number you will want to make sure you immediately open a business bank account. You must separate yourself from your business. When setting up your business bank account you will want to pick a bank that is business friendly. Ask the banker if they provide small business credit cards and unsecured business lines of credit. You will also want to ask the banker if they offer secured credit cards that would be reported to the business credit report. Find out if they offer payroll services and feel our each banker. As your business grows you will want to deal with a bank with the least amount of fees and a bank that will care about your business with them.
Next, you will want to immediately apply for your Dunns Number which is issued by Dunn & Bradstreet. Dunn & Bradstreet will provide you with a Dunns number for free if you do not have the funds to pay for their credit builder program. But, paying the minimal fee in my experience will do wonders for your business financing profile. Many lenders utilize your Employer Identification Number, Bank Account and/or your Dunns number to insure that you are in business. With these identification factors you will find that obtaining vendor credit within a week of completing all of the above items will be very easy. You will need vendor credit to begin developing a credit profile.
Although we may feel that there is a credit crunch there are still many lenders out there that will extend credit to new businesses. But it is imperative that you set up your business for credit worthiness. If you have created a business just to find ways to obtain credit for your personal use you most likely will be very unsuccessful. Because of the credit crunch, finding small business financing can be tough because the creditors have already lost millions of dollars on illegitimate businesses.