11/03/2023
Business Credibility: Make Sure
Your Business Meets Lending
Criteria Before You Apply
Lenders and creditors have rather specific requirements of what they
want to see to approve you for credit and financing. If you meet these
criteria, you often get approval. But if not, you’ll get a denial. You’ve
probably been turned down before, due to not meeting one of these
criteria. But in this section, we reveal the lender’s secret formula for
approval. So you know you’ll get an approval before you apply.
The first step in building business credit is to ensure you have a
business entity set up. Per Wikipedia: “A business entity is an entity
that is formed and administered as per commercial law in order
to engage in business activities, charitable work, or other activities
allowable. Most often, business entities are formed to sell a product
or a service.”
Setting up your entity is what allows you to do business legally with
your state and the Federal government. So it’s an absolute necessary
first step. Any entity can build business credit. But to remove personal
liability, choose an entity like a Corporation or LLC (Limited Liability
Corporation).
After your entity is set up, next you must get
your EIN number from the IRS. An Employer
Identification Number or EIN (also
known as Federal Employer Identification
Number or FEIN) is the corporate equivalent
to a Social Security number. But it is issued
to anyone, including individuals, who must
pay withholding taxes on employees. To do business legally, you must
have an EIN.