Tips To Get Corporate Business Loans
Every one of us has a basic knowledge of how to build and get a personal credit, it is simple as you just have to pay your bills on time. Don’t surround yourself with many debts but what about business credit? Many small businesses see this thing as a mystery and don’t understand the term completely. It is like a completely different world to them. But it is not actually what they think. Basically, the process of getting a business loan is not that difficult. It is as same as that of building your own personal profile. The only difference is you are doing it in the name of the business.
Tips To Get A Corporate Business Loan
If you want to get a loan for a small business then below here are few steps which will tell you about how to get a corporate business loan.
The first and foremost thing that you should keep in your mind while you are building a business credit is that you should separate your business and the finances from your personal credit. This means that you should run a business that should have a legal entity separate from you. However, keep in mind that it cannot be a property of a sole person or a regular partnership. This is because having a partnership or a sole proprietorship is not a separate legal entity. The benefit of creating a separate entity is that you are allowing your business to have a good credit rating and legal structure which is different than your own.
Try To Get Your Employer Identification Number
If you are running a business then it is quite important to get this number. The employer identification is basically issued by the IRS. If you have an employee identification number of your business then the number is equivalent to Social Security Number. However, if you don’t have an EIN then make sure to get it from the IRS.
Get A DUNS Number
The DUNS number is basically provided by the main adjudicator of the business credit, Dun & Bradstreet. The DUNS card is an important thing to be issued as it is your business credit card profile number.
Open Up Two Accounts In Bank
You might be thinking, why two accounts? The first account is actually a standard checking account. Make sure, it is different than your personal checking account. Provide all the details such as the DUNS number, employee identification number and so on. Second account should be a savings account which is tied to the checking account.
Get A Vendor Credit
Once you have got all the number and your account, you can begin the process of building a credit profile for your business. You can start with a phone company. But again, you have to put your business name in the business phone number. Check if the supply store of your office is agreed to pay a loan in the name of your business.
Get A Loan
You can use the savings account of your business to get a loan from the bank in the name of the business. You just have to give every reason to the bank to get a yes from them. Secondly, start to build a business credit so that you can show that you have received and are repaying the corporate loan.
Try to pay all the credit and interest on time to the bank. Doing this you will create a strong track record of your business and this will help you in getting necessary loans without any hassle.
So, the above-mentioned tips about how to get corporate credit commercial business loans. If you want to get one then follow the tips.