The Essential Checklist For Business Financing
Every year, thousands, if not millions, of businesses are declined when trying to secure different types of business financing. Many times, the business owner is unaware of why they were declined in the first place. Banks and other lenders can be very finical at times. If your business is not set up exactly the right way, you may be declined over something seemingly inconsequential, even before the lender takes the time to determine whether or not your company is creditworthy. The following 8 step checklist will make sure your company is set up the right way, the way lenders like to see it. Step 1: Form a separate legal entity. A sole proprietor can get approved for a "business loan", but it will not be a true business loan. Since there is no separate legal entity apart from the owner, the loan will be in the personal name of the owner and based on their personal credit scores. It is highly recommended that a business gets incorporated if they want to maximize their chanc