Most business owners have applied for corporate credit at some point, whether in the form credit cards, bank loans, alternative funding, or just trade-based lines of credit. Whether you were approved or denied, chances are pretty good you don't know what you did right (or wrong) that brought about that result.
If you were approved, count yourself among the most qualified, best prepared, or just downright lucky, because small business owners are usually among those most frequently denied when applying for business-based, unsecured lines of credit.
Getting approved for business funding is actually not as difficult as some might think, especially if you have a good grasp of what specific information lenders are looking for from your company, such as how many years you've been in business, what industry you're in, and what your base income and expenses are.
In the past four years, I've been helping small business owners get into a better position to qualify for supply lines, retail credit, loans, SBA funding, and bank lines of credit. That usually involves updating their D&B report, adding their previous payment history to the credit file, and then pointing them toward the funding and resources to get them to their goals — to the tune of $3,497,200 in 2017 alone.
I have always referred my clients to some great funding options, but Starpoint was also recently named as a trusted referral partner for OnDeck, a premier online small business lender. That means I now have more of the information and insight you need to get prequalified for working capital loans and the short-term funding. While I was already pretty good at getting customers into the right position, now I can actually take that a step further, making sure they meet specific criteria and lining them up with a high level decision-maker.
So if you've been thinking about lining up funding for your small business, here are a few tips to help you get prepared for the application process.
Know what is in your business credit reports. Even though most lenders still rely on the D&B report to validate business information and make credit decisions, many lenders and creditors (including OnDeck) look for validation by pulling your business credit report from other commercial credit bureaus, such as Business Experian or Equifax Business.
Know what data is available to lenders on the web and work toward consistency. Your business name, address, phone