So there you are – you’ve done all your research, scoped out the competition, found your marketing niche, and spent countless hours planning precisely how you’re going to open, then operate your business
Detroit, MI—Pat Gage, the Opportunity Creator, was recently interviewed. He explained the steps to take when applying for business lines of credit for financing a new business venture. Pat explained that family and friends are good sources for investing some start up costs, but it might not be enough
Pat discussed what one needs to prepare when they go to visit their banker for a business line of credit. It is important to show the lender experience and knowledge in the business one is going into so the lender is assured that his note payments will be paid and he will get a return on his investment. Pat shared how the business loan officer will want to go over the business credit profile to help him decide the applicant’s credit worthiness as a business. Pat also shared tips on creating a business plan and credit profile.
Pat explained how important it is to separate personal credit from business credit. Personal credit is for household expenses and business credit is to start, or expand a new business. Using personal credit to fund a business will make one appear to be overextended to the banks resulting in the lender declining personal credit for household needs, such as a new house or car.
Gage shared a lot of information on how to incorporate a business. There are several different entities to choose from, C or S-Corporation, or LLC (Limited Liability Company). That makes a business a self-sustaining entity, and takes away any personal liability. Each type of corporation is structured differently, depending on the individual needs of the business. Each has its own tax advantages too.
Pat also explained that a business needs to have a Federal EIN, which is like the social security number and a separate bank account under the business’ name. He went on to cover the need to comply with all local regulations regarding permits, licenses, etc. The banks will require a business phone number (not a cell phone). They will verify that the business phone number is a land line in the business’s name corresponding to the physical address given as the business address. The important thing is that all of your business information is consistent.
Pat finished up with the last step which is establishing a business credit profile with Dun & Bradstreet and the other business credit bureaus. These are the premier credit rating company’s all banks turn to. To do this, one needs to get several business vendors to extend a small amount of credit to be repaid promptly, so those vendors can then be used as credit references. They will be reporting the payment history so the banks can check on business credit.
Getting that first business line of credit isn’t rocket science, but it does take a little work, and a lot of attention to detail.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Contact Pat Gage, the Opportunity Creator to your business success:
Destiny Now, LLC33006 7 Mile Road Suite 423Livonia, MI 48152Phone: 734-261-0688Toll Free: 877-262-0688Fax: 734-422-6168
Email: info@opportunitycreator.com
Detroit, MI—Pat Gage, the Opportunity Creator, was recently interviewed. He explained the steps to take when applying for business lines of credit for financing a new business venture. Pat explained that family and friends are good sources for investing some start up costs, but it might not be enough
Pat discussed what one needs to prepare when they go to visit their banker for a business line of credit. It is important to show the lender experience and knowledge in the business one is going into so the lender is assured that his note payments will be paid and he will get a return on his investment. Pat shared how the business loan officer will want to go over the business credit profile to help him decide the applicant’s credit worthiness as a business. Pat also shared tips on creating a business plan and credit profile.
Pat explained how important it is to separate personal credit from business credit. Personal credit is for household expenses and business credit is to start, or expand a new business. Using personal credit to fund a business will make one appear to be overextended to the banks resulting in the lender declining personal credit for household needs, such as a new house or car.
Gage shared a lot of information on how to incorporate a business. There are several different entities to choose from, C or S-Corporation, or LLC (Limited Liability Company). That makes a business a self-sustaining entity, and takes away any personal liability. Each type of corporation is structured differently, depending on the individual needs of the business. Each has its own tax advantages too.
Pat also explained that a business needs to have a Federal EIN, which is like the social security number and a separate bank account under the business’ name. He went on to cover the need to comply with all local regulations regarding permits, licenses, etc. The banks will require a business phone number (not a cell phone). They will verify that the business phone number is a land line in the business’s name corresponding to the physical address given as the business address. The important thing is that all of your business information is consistent.
Pat finished up with the last step which is establishing a business credit profile with Dun & Bradstreet and the other business credit bureaus. These are the premier credit rating company’s all banks turn to. To do this, one needs to get several business vendors to extend a small amount of credit to be repaid promptly, so those vendors can then be used as credit references. They will be reporting the payment history so the banks can check on business credit.
Getting that first business line of credit isn’t rocket science, but it does take a little work, and a lot of attention to detail.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com
Contact Pat Gage, the Opportunity Creator to your business success:
Destiny Now, LLC33006 7 Mile Road Suite 423Livonia, MI 48152Phone: 734-261-0688Toll Free: 877-262-0688Fax: 734-422-6168
Email: info@opportunitycreator.com
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