How To Get
Business Credit
& Get Funding
Learn how to establish business
credit and position yourself to
receive funding.
BY DARRYL HOWARD
Credit Specialist
THE ESSENTIALS
To obtain business credit, you must first
register your company, obtain an EIN
number, and set up proper reporting of your
credit score. Let's talk about getting your
business registered, deciding what type of
business to start, and obtaining your EIN
number.
WHAT IS
Sole - Proprietorship & LLC Limited Liability Company?
Sole - Proprietorship, LLC - Limited Liability
Company, Partnership, Corporation
Sole - Proprietorship
- very easy to form and gives you complete control of
your business - not a separate business entity from
you, meaning that your business assets and liabilities
are not separate from your personal ones - you can
get a trade name - good for new businesses who
want to test their idea before getting more formal
LLC - Limited Liability Company
- you are able to protect your personal assets - you
pay self-employment tax but can also access these tax
write-offs - great choice for once your business
becomes more established or you are incurring
business expenses which you want to write of
WHAT IS
Partnership &Corporation?
Introduce the next section
with a subheading
Partnership
- simplest structure especially if you are going into business
with a partner - Limited Partnerships - one partner with
unlimited liability who pays self-employment taxes, and other
profits are passed through to personal tax returns for the
other partner. - Limited Liability Partnerships - protects each
partner from debts against the partnership & they won 't be
responsible for actions of other partners - also good for
testing a business first before opening a formal one
Corporation
- legal entity that is completely separate from owners.
- C-Corp: more expensive than other structures and require
extensive record keeping because the business takes profits
and can be taxed on them.
- S-Corp: allows profits and losses to be assessed with
personal income and avoid corporate tax rate. All S-Corp
members have to be U.S. citizens because you must file with
IRS to get that status
REGISTERING YOUR BUSINESS
on a Business Name (or you can
1. Decide
use your name if you 'll be choosing a SoleProp)
Check your State to see if that name is
2. currently being used or has already been
claimed
you ' re filing for an LLC, you will have
3. Ifdifferent
instructions based on your state,
click here.
you ' re starting with a Sole-Prop, you can
4. Ifregister
for a DBA.
GETTING YOUR EIN
You can apply for an EIN online at the IRS
1.
website. You 'll select what type of entity you
are (if you start as a Sole-Prop, you will have
to get a new one when you want to start an
LLC)
You 'll answer questions about what type of
you have (Retail, Consulting, Real
2. business
Estate, Etc.) Input when you started your
business activities (it' s okay if your business
is brand new, just get it done!)
You will sometimes get it same day, other
they may email you a few days later.
3. times
Make sure you save the whole document as
a PDF to your computer! You will need this
when you first open a business bank account
BIZ CREDIT BUILDING
BASICS:
For some you can apply and
OPEN BUSINESS BANK ACCOUNT
to the branch.
When your business is registered,
meaning you have either an LLC, or you
have registered your DBA for your Sole
Prop, you can apply for a business
account.
For an LLC you 'll need to provide -
submit everything online, with
other banks, you may need to go
***PRO-TIP: Have your business
e-mail, website and phone number
ready. This strengthens your
application***
ONLINE BANK ACCOUNTS
Your Articles of Confederation, your
LLC certificate (you 'll receive this when
BluVine
you get it back) and you ' re EIN #
BBVA
For a Sole-Prop you 'll need your
business registration in your state, (this
can be your DBA) and your EIN #
Lending Club
Novo
NBKC
Traditonal Bank Accounts with low fees
Chase: Great low-fee account, merchant services
account
Bank of America: Great low fee account, easy
approval for business credit card
GETTING YOUR DUNS NUMBER
+ EXPERIAN & EQUIFAX
1.
You can get a DUNS number for
free by going to D&B website
and requesting one.
You will provide the year you
started your business, the
2.
number of employees and the
nature of your business. You will
fill out the requested information
such as your business name,
address & phone number
3.
It typically takes about 10
business days to receive it and
you will receive a phone call from
their customer service line to
verify your identity.
PRO TIP - if you are
located out of the US
you can still register for
it online. You can leave
the EIN field blank if
you don 't have one
REGISTERING WITH EXPERIAN
SMALL BUSINESS
1.
This becomes open by you having lines of credit
reported on your business name and EIN.
Experian recommends you have your business
registered in your state and establish a
dedicated business phone line with a publicly
listed number. Vendors that report to Equifax.
2.
Similar to Experian, you need to get tradelines
with accounts that report to Experian like Banks
& Leasing companies as well as SBA. Look for
companies that are part of the SBFE (Small
Business Financial Exchange, Inc.)
Pro Tip: Signing up with NAV allows you to
have reporting to all three of these places! D&B,
Experian and Equifax
EXERCISE #1
Your Tools & Resources
This portion can contain the main tasks or goals, in the form
of bullet points or a short, descriptive paragraph.
CHECKLIST #1
Books, Online Course, etc.
Books, Online Course, etc.
Books, Online Course, etc.
Books, Online Course, etc.
Books, Online Course, etc.
CHECKLIST #2
Apps, Scheduling Tools, etc.
Apps, Scheduling Tools, etc.
Apps, Scheduling Tools, etc.
Apps, Scheduling Tools, etc.
Apps, Scheduling Tools, etc.
ESTABLISHING BUSINESS
CREDIBILITY
INCREASE YOUR ODDS OF APPROVAL
Business Credibility Checklist
- Business Name Full Legal Name must match including DBA's
and match what's listed in public records.
- EIN Number Make sure it matches what the IRS gave you,
accuracy matters!
- Business Address Needs to be its own physical address, not a
P.O. Box or UPS Box
- Business Website This should properly reflect your brand. Use
GoDaddy, Shopify, Wix or WordPress
- Business Email Use your domain name as your email address i.e.
hello@domain.com
- Business Licenses Make sure you have proper licensing for your
industry & state
- Business Phone # & 411 You should have your own business
phone number under your business name
- Business Fax Having a business fax # builds additional
credibility, you can get an online one at Efax.com
- Public Records Just like your personal credit, make sure you don't
have delinquencies! Pay everything early and on time