How to qualify for a Business Loan?
Many business owners in the United States, Puerto Rico and Canada, are involved in many projects for fear of requesting a Business Line of Credit, Loan or a Cash Advance.
If you are looking for Financing:
-Finance Equipment and Machinery
-Financing for improvements
-Money to recruit staff
-Financing for Marketing and Advertising
The first thing that must be ascertained to obtain success in its application the owners of the businesses that need capital for the business the following points
1) Establish a commercial entity
If you are reading this, it is very likely that you have already created your own business entity, but it is important to understand that your business credit is separate from your personal credit.
The formation of a sole proprietorship, or a partnership / joint venture means that legally, the business remains the same as the owner. As a result, there is no separation between personal credit and commercial credit. The creation of an LLC or a corporation however, will create a business that is legally separate from the owner (s). Consult with a lawyer or an accountant to determine if you should form an LLC or a corporation.
2) Obtain a federal tax identification number (EIN-TAX ID)
Your EIN acts essentially as a social security number for your business. An EIN is required when you open a bank account with the name of your corporation or LLC, and it is also required when filing the federal tax return. To meet the requirements of the Internal Revenue Service (IRS), larger companies often require an EIN from their suppliers when conducting business. You can easily request an EIN on the IRS website.
3) Open a Banking Trade account
Opening a business checking account with the name of your corporation or LLC is an essential step in the process of building your business credit. Once the account is opened, you must start managing all the financial transactions of your business through that account.
If you use a commercial credit card to cover all of your business expenses, be sure to pay the bill with the bank account. Generally, you need a state business license and an EIN (or social security number for a sole proprietor) to open a commercial bank account, in addition to a photo ID issued by the government.
4) Establish a phone number for your company
This is the number you will use to list your business in directories and make it easier to find the same. Your service provider will report the payments to the credit bureaus, which will help build your credit history.
5) Open a commercial credit file
An essential step in creating commercial credit that many people often overlook is to open a commercial credit file with TransUnion, Experian and Equifax.
6) Use one or more credit cards for your company
We can not help emphasizing how important it is that you separate your personal credit from your business credit. Therefore, you must open one or more credit cards that are not linked to you or to the personal accounts of your business partner (s).
Pay all your bills on time This you already know, but it’s worth repeating: if you want to build good commercial credit, you should always pay your bills on time. Late payments will have as much negative impact on your business credit as you would on your personal credit.
7) Open a line of credit with your suppliers and suppliers
Find suppliers who are willing to offer you a line of credit for purchases. Whenever you pay your bills on time, this will create a history of positive financial transactions that future suppliers will reference when determining the payment terms to offer to your company. Look for suppliers who report to the credit bureaus.
It takes time to build commercial credit. Meanwhile, you will need capital to grow and expand your company. We can help you in Loan for YOUR Business. we are associated with an extensive chain of high risk banks that supports Latino businesses to obtain financing, lines of credit, cash advances and a wide range of financial products.