If you are considering starting a business, you may be surprised by the financing options available to your business before you ever open your doors.
To get credit for business start-up and initial operation, you need to do three basic things: The first important thing to do is register your business as a legal business entity.
DBAs do not qualify for business loans.
You should also have a business phone listing that matches your business's physical address.
Lending institutions use the national 411 directory to verify this information.
Finally, develop a line of credit with your vendors and service providers.
But, you think, I need the money from the loan to do these things! Lenders understand this and offer credit for business start-up.
To get this type of loan, you will have to have a sound business plan that includes how you intend to spend the start-up money (equipment, staff, computers, utilities, etc.
).
Show how you will make money with the financing from their loan.
A good source for these types of loans is the SBA.
You will need a good personal credit rating in the beginning, unless you use one of the various bad credit business loans available.
You should also get business credit cards by using your business's information.
To build your business credit, you want business credit cards with your business name on it.
It is very important that this be a business card, not one with your personal name on it, to help your business establish credit.