How a Virtual Address Hurts Your Credit

Updated: Feb 4

Location. Location. Location. How many times have you heard it? But there are some credit "gurus" out there who tell their clients to use a virtual address so they look more "corporate" or professional. Unfortunately, what they don't tell their clients is that trying to pass off a virtual address or mail-drop location as a physical address can actually cause more harm than good.

When assessing your company's validity, D&B looks at seven specific data points that help to determine your company's viability and credibility:

  1. Business Name: Must match exactly to any available legal documentation and/or information flowing in from alternate trusted resources, such as credit card companies, banks, and other financial data providers.

  2. Legal Structure: Whether this is a corporation, LLC, partnership, or sole proprietorship, but also whether it is headquarters, branch, division, subsidiary, parent, or global ultimate.

  3. Physical Address: The physical location where business is conducted, whether it is a business or residential location, approximate square footage, and whether it is owned, rented, leased, or shared. Virtual offices, personal mailboxes, and mail-drop locations are not permitted, and typically are viewed as deceptive (because there's no way you have 12 employees in that mailbox!)

  4. Phone: Whether it is a landline, cellular phone, or VoIP (voice over internet protocol), and whether it is in the business name or in the name of an individual associated to the business.