Practice English Speaking&Listening with: How to Get Startup Funding

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Unleash the power of fundability, what is fundability? Fundability is

your businesss ability to get funding you can make it harder or easier for

your business to get money a lot of the power is in your hands

every business should build for fundability a business starts with no credit

profile therefore whats on your application is

all thats reviewed for approvals so your application must be very strong

most companies fail in their first year half of all companies fail in their

first five years and two thirds in the first ten as a result new businesses

dont seem fundable to lenders. Lets look at your industry. The first

step in fundability is your businesses industry. Some industries are considered

more risky than others when it comes to traditional funding sources added risk

can mean stricter underwriting guidelines or even no funding at all

Lets look at your business name check with your Secretary of State they might

require that a business name be unique keep the name of a high-risk or

restricted industry out of your business name. Chicos Bail Bonds can be renamed

as Chicos this is above board and honest a full business name should include any

recorded DBA filling you use lets look at your business address a

business address must be a real brick and mortar building it must be a

deliverable physical address this can never be a home address or PO box

dont use UPS mailing addresses some lenders will not approve and fund unless

this criterion is met. Lenders will check USPS and places like

Google Maps to see if youre using a home address if you are you often get an

immediate decline, never use a home address on your application not even if

your company is just you. You can use a virtual address we like Regus, Davinci

and Alliance. Lets look at your business phone and

Fax numbers and a 411 listing you need a Fax number or an eFax as well set it

to go straight to email a cell or home phone number as your main business line

could you get flagged as unestablished but VOIP is okay you must have a

dedicated business phone number, business phone and fax must be listed on

411 via your business phone numbers should be

toll-free 800 exchange or comparable. Lets look at your business bank account

you must have a bank account devoted strictly to your business this helps it

at tax time the IRS does not want you commingling funds make accounting easier

and reduce the risk of audit keep personal and business funds separate the

simplest way to do this is with a separate account the account opening

date, is the businesses opening date far as lenders are concerned a longer

history is better. Lets look at your business bank

accounts and your business financials, you always need to be looking to the

future, that future is bank and other loans and other kinds of funding set

your business up for bank loan approvals success keep a balance of $10,000 or

more for at least three months to get a low five bank rating this way most

conventional banks see your corporation as fundable if you dont have a low five

you can still get corporate credit and alterative loans but you would not be

able to get a conventional loan bank ratings measure how responsible the

account owner is with funds lets look at your time and a business a

company in business for a few months to a year has more options for funding,

startups dont have tax returns to show lenders or too many other ways to show

profit and the responsible use of finances. This is another reason to open

your business bank account ASAP that way your time in business is get as long as it

can possibly be. Lets look at your Business Entity and EIN,

get a free EIN for your business at the IRS website to truly separate

business credit from personal credit, business must be separate legal

legal entity not a sole proprietor or partnership a corporation or LLC

business entity gives you more credibility in many cases these entities

by default eliminate your personal liability other entities dont make sure

your entity is set up in the same state as your business address verify all

listings show the same name, address, phone numbers, etc. as in state and other

records. Lets look at your SIC and NAICS Codes

the IRS website is also where you choose SIC and NAICS codes, industries are

categorized by two kinds of codes SIC Standard Industrial Classification and

NAICS North American Industrial Classification System you choose these

codes be honest when you choose yours, but theres no reason to choose the

riskiest code if a less risky one might apply.

Lets recap take control of how likely it is your business will get money, how

fundable it is having a proper business address, phone and fax numbers website

and email are vital setting up your business with the IRS and getting an EIN

and choosing a corporate entity are all important get set up with the business

CRAs so you can start building a record and the best record comes from paying

your bills on time your personal credit quality and financials play a part and

keep your records congruent so lenders can find out everything they need to

know about your business. Contact us today to learn more about how

to unleash the Power of Fundability.

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