Business Credit for Startups

*You do not need sales to get funding, you simply need a business that looks legitimate to the lender.

Starting a business is serious business, and when it comes to funding, lenders need to see that you mean business too. To them, without a solid track record, your world-changing idea could be nothing more than a weekend project. They're looking to see if you're in it for the long haul or if you'll fold when the going gets tough. Startups often don't have the history to show they're a safe bet, which can make lenders as nervous as cats in a room full of rocking chairs. But don't worry, there are ways to look the part. Think of it as setting up your business's online dating profile: make it as attractive as possible. Get your business plan crisp, your website professional, and your paperwork in order. It's all about building a business credit profile that's as appealing as a home-cooked meal. Remember, lenders are looking at over 100 factors that determine fundability. To get you started, here are five beginning steps you can take right away to help build your business credit and make lenders swipe right on your business.      

Building Business Legitimacy in your Startup

1. Start with your phone number

An 800 toll-free (or other standard toll-free area codes, like 877) number spells legitimacy to a lender. You can do this with a virtual phone number A personal phone number may get you flagged as an un-established entity You can have this virtual number forwarded to your cell phone if away from your computer.      

2. Get a 411 Listing

A 411 listing also spells legitimacy. Your phone number must have a listing with 411 for most credit issuers and lenders to approve you. If your business does not have a listing, ListYourself.net can help you get your business a listing.

3. Get a Professional Website

A professional business website will also help

A lender will get a lot of information on your startup from online It’s better if they get it from your website than elsewhere . A professional website should provide basic business information at a minimum.

4. Your Business Email Address

When you buy hosting, get at least a few business email addresses

The addresses will then match your domain

Never use a freebie provider like Yahoo or Hotmail!  

Check your email address:

a.       admin@yoursite or webmaster@yoursite or president@yoursite are all great

b.       Or use your name or a combination like a first initial and your surname, like jsmith@yoursite

Don’t use something like cutiepie73@yoursite

5. Your Business Entity and EIN

Get an EIN (Tax ID number) from the IRS   Decide on a business entity, LLC, C-Corp or S- Corp are the best for success in building business credit   Having an EIN means you can start establishing business credit instead of leaning on personal credit