Improve Access to Business Credit for Your Small Business
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When building your initial business credit profile, make sure to meet credit issuer criteria. Since you don’t have established business credit and your personal credit needs to be under scrutiny, the application’s content becomes the sole factor for approval. Therefore, it must be strong. Have you ever applied for a business credit card and received immediate approval from an automated system? That’s because lenders and credit issuers maintain a secret set of requirements you need to meet to get approved for business loans. Your ability to secure electronic approvals or face rejections depends on your company’s fundability. Fundability factors include your business entity type, the kind of business phone number you have, whether your business phone number appears in specific directories, your business address type, your business licensing, the consistency of your business records, the quality of your business lending references, the status of your business bank account, and the setup of your business website and email, as well as your EIN, DUNS, and BIN numbers. Understand that even if you meet all these criteria, most business loan applications get rejected due to fraud concerns, not compliance issues. Lenders combat fraud by cross-referencing their business and application information with databases like LexisNexis, Dun & Bradstreet, Experian, The Small Business Financial Exchange, Equifax, and ChexSystems.

Voice Over I.P.
Consider using Voice over I.P. services from providers like Freedom Voice or RingCentral as a strong alternative to a physical business phone line. Once you secure a business phone number, also obtain a fax number to boost your company’s credibility in the eyes of lenders. Use this fax number for receiving vital documents and sending in credit applications. Services like Freedom Voice and RingCentral offer cost-effective fax numbers that closely match your business phone number. After setting up your business phone number, acquire a toll-free number to enhance your credibility with lenders and credit issuers.

Business Website
You need a professional-looking website and email address for your business. Choose a domain name ending in .com or .net and opt for reputable hosting services like GoDaddy instead of Wix or Weebly. You can purchase a domain and set up a website in just one day; larger hosting companies can help you if you need to be tech-savvy. List your business on search engines such as Yelp, Citysearch, and Zagat, as well as in 411 directories. Enable Secure Sockets Layer (SSL) technology to establish an encrypted connection between your server and a client. When applying for a loan, note the age of your website’s domain and ensure it aligns with your WhoIS domain listing. Your website’s search engine ranking and directory listings can also enhance your loan application. Update your website’s design, backlinks, and practices to present a positive image of your business to credit issuers. Accept multiple credit cards on your website to enhance credibility. Ensure consistency across your public filings with the Secretary of State, business licenses, and other public records, matching them with your website’s information. For added trust, display seals like McAfee, Verisign, and TrustE on your website. Maintain a strong social media presence; lenders assess your business’s credibility based on your social media reviews, ratings, check-ins, news coverage, web engagements, likes, and followers.


Business Email
Lacking an email address or website can make your business appear untrustworthy. Ensure your email address shares the same domain as your website. Opt for generic, professional names like admin@yourwebsite.com or gethelp@yourwebsite.com. Steer clear of using free email services like Gmail, Yahoo, or AOL for your business account. If you prefer another email address for daily use, you can easily forward all emails to it.
Business Bank Account
Most business credit providers require a business bank account to avoid accidental mixing of funds. Many banks, even those with physical locations, allow you to open business bank accounts online. If you purchase a business, lenders might raise red flags because they look at the bank account’s start date, not the entity’s start date. So, open a business bank account as soon as possible for it to serve as a reference. Maintain a $10,000 balance in your business bank account if you aim to apply for an SBA loan. Getting a business account should be straightforward if you already have a well-managed personal bank account.
Banks use an internal, confidential credit score based on your average account balance over the last 90 days to assess your bank credit. You’ll generally need an average of $10,000 in your business bank account to secure a good enough score for a bank loan. Large banks like Wells Fargo and Chase consider your bank credit score when deciding to extend credit. Aim for a high five rating to secure a sizable bank loan.


DUNS Number
To build business credit, you need to obtain a DUNS number from Dun and Bradstreet. A business credit report is generated once you have a DUNS number with at least three registered payment experiences. Dun and Bradstreet offers a free product that gives you a DUNS number within 30 days. If you need it more quickly, you can pay $229 for a DUNS number in five business days or less. DUNSFile and CreditSignal offer credit reporting for the same price but only focus on D&B business credit scores. They also send you alerts if your credit score changes and provide a detailed D&B business credit report.

LexisNexis
LexisNexis provides all lenders with information that influences loan application decisions. This data predicts the likelihood of repayment. Lenders compare the details you provide on your loan application with the information in LexisNexis. If discrepancies exist, the lender will deny your loan. LexisNexis employs a proprietary linking system that connects all your personal information, both positive and negative. LexisNexis reports include: every property you’ve owned along with its value and sale prices; your home’s building materials; details about your Homeowners Association, including bed, bath, and roofing specs; air conditioning units; deeds and mortgages; associated title companies; interest rates; loan amounts, terms, and types; all your phone numbers and email addresses; every license, firearm, mortgage, and violation you have; traffic tickets, felonies, misdemeanors, and sex offender records; variations of your name; your marriage and divorce records; every vehicle you’ve owned, including their VIN numbers; all your past insurance policies; every business affiliation; family information, including details about your children; loans and leases; aircraft and boat ownership records; public records like bankruptcies, judgments, and lawsuits; educational records, including degrees earned, schools attended, and graduation dates; military records; online marketing records; and records of requests for short-term credit offers.
Small Business Financial Exchange
The Small Business Financial Exchange (SBFE) is a non-profit organization that collects small business data from its member lenders, who also serve as its owners and stakeholders. The organization then uses this data to generate comprehensive credit reports, which lenders use for credit assessments. Operating under a “give-and-get” principle, the SBFE allows members to access information about their borrowers, including payment history, and also gather trade data. If you want a loan, lenders within the SBFE scrutinize a wealth of information about you and your small business, not just your payment history. The SBFE also supplies data to credit reporting agencies and LexisNexis. They store any information you’ve submitted in a business application, and discrepancies in this information can lead to loan application denial. Certified Vendors are credit reporting agencies that have partnered with the SBFE. The only Certified Vendors are Equifax, Experian, Dun and Bradstreet, and LexisNexis Risk Solutions. While lenders can use other reporting services, membership in the SBFE and utilization of a Certified Vendor provide them with both the vendor’s data and data from the SBFE.
