What you Don't Know About Biz Credit Can Kill your Loan Approval Chances!

When you got into business (or right now if you are starting up) - did you ever imagine anything but success? Something should of told you that there was some 'down-sides' the first time you discussed it with your bank, or were rejected for a business loan - right? NO! you say...How about the 2nd time you were rejected, or the 3rd...? YEP - Problem.

Everyone has rejection stories early in their business ownership careers related getting started, or to trying to get banks to lend them money for their great (entrapanural) business ideas or expansion plans. The problem, if your like most Small or Medium sized business owners (no-matter what industry), is that same problem persists year after year in most businesses and is ongoingly nationally!

The 'come-back' reason for most conventional lending sources (that don't really want to lend to your business entity) is your business 'doesn't qualify' (usually with no particular reason why); but, they will loan to you personally: 'IF' - you have great personal credit (think about a personal credit scores of like 700 to 850 range!) and then you can use that loan money inside your business. What they really want from you is your personal guarantee and/or pledging of your personal (or family) assets (think of your home, stocks, bonds or other collateral), because conventional lenders (like banks) don't like risk. So, to clarify - 'IF' they lend any money at all (that you can use in your business from this type of personal loan) - YOU have to personally pay the money back to that type of Lender/Bank regardless of the outcome of the investment into your business! This type of lending, no matter what the business use is for is called 'recourse lending' - this type of loan collection can be pursued by any and all means to you as a person, and will be reported on your personal credit report with your personal social security number - potentially dragging your personal credit score downwards.

Unfortunately all over America, by default, this is how most small and medium sized businesses are forced to or get 'funded' - when other sources like friends, family and non-working 'partners' are unavailable or tapped out. Sound familiar? You are not alone....there are over 38 million other business owners in the USA; and, about 5 million more additional new owners trying to open each year that are, or get, entangled with this type of (personal) business finance dilemma. Why? you ask; because there really is no-one teaching business owners HOW to get true (non-recourse) business entity financing through their business' EIN (entity) number (that is the number the IRS assigned to your business entity when you registered it. It is like a business 'social security' number, or your business entity's ID, and it's titled by the IRS as an Employer Identification Number regardless whether you have or plan to have any employees. In the credit and legal world it becomes the number that identifies the business, just like the (person) business owner has their personal SSI.

Compounding the fact that no-one is teaching business owners 'how-to' get true business credit and capital through their business entity; it's projected that 97% of small and medium sized business owners don't even know that this type of credit exists, is available, or if they happen to know about it, don't know how to find a pathway to that type of lending resource. Not having the resources or knowledge is just the beginning of the issue, or we could say the 'tip of the iceberg'. Knowledge is the first element - that this type of financing really exists...

Let's just say (somehow) each business owner in America suddenly became aware of this type of credit today - right? Come-on, dream with me here! Anyway, tomorrow they all go out to seek, and apply, for that type of true business entity credit (I know - I just said that on-one knows, where to apply, how to apply, when to apply - but for this article "pretend" that's not a problem), and they make the application with their business name, address, and phone number, email, and their business entity's EIN. So just so that you are with me here - they haven't used their personal social security number, not develdged anything about their personal income, or assets, or any business income or business financials yet - right? YES - get on with it you say.

Well, they little do they know, but they just hit the iceberg and had no idea of the depth (challenge) ahead; worse yet, they have a great potential of being denied this ideal business credit as identified above with only that little of information - WHY??! you ask; it smeems the lender doesn't even have anything to make any decisions on yet #@$%%! Without making you anymore frustrated about learning what's going on here I will summarize. They didn't know what they didn't know - or in other words they were not prepared to make sure they had everything in order with their application first.

You can KILL your chance of approval on any true business entity credit or capital loan at anyone of a 125 simple intersection or points of data that is looked at much differently in the business credit world; and each one can be a serious flaw leading to business credit denial. WOW! who would have known that of the (only) 5 data points I mentioned above there could be 5 separate (or interrelated) loan approval - loan KILLING problems. That is just with the first 5 fill-in-the-blank lines on a business entity credit application! YES!!; on a business entity loan if each of approximately 125 different critical data points are not able to validated, or aren't perfectly correct ,or aren't a perfectly matched recorded public records verified (or for some reason cannot be verified) most likely the business loan will be declined and not approved without a reason.

As an example; let's say the business owner above used the accurate 'business' main phone number.... but, if it is NOT listed for that specific business in a local 411 directory (for that business name - 'exact name match') - DECLINE (possible fraud alert!). I know! don't shoot the messenger, I don't make the rules - just reporting them...It is archaic in many ways (like who uses 411 info anymore?) Just ask them to google it - right? NO- Wrong Answer! Example number 2; the email provide by the owner IS the one He/She/They use for business) but ends with @gmail, @yahoo, etc., DECLINE! If the email provided doesn't have the business being applied for in the address - [email protected] (please spend the extra $1.99/mo for an email address when you get your business domain) it's an automatic DECLINE (Fraud alert - 'not a real business'?) WOW - RIGHT, are you getting the drift?? These lenders are considering loaning the business entity (non-recourse money) - meaning if the business (or is a scam/doesn't exist) and doesn't pay the money back they don't can't go after the business owner (with some limitations, like fraud).

Seemingly simple things that 'untrained' folks like everyday American business owners would never really think about (or know to think about) on what would seem to be no big deal "fill-in-the-blanks" loan applications in everyday life can KILL a business loan application and become an automatic DECLINE. This is especially true when using the business entity address - use a P.O. Box - automatic DECLINE - even if it is the official address of all business filings and tax returns. Again, don't shoot the messenger I don't make the news - I just report it! So, ask you can see, there are literally 125 points or places (these were just a few examples) on a true business loan application that can kill and approval and result in an automatic decline or loan denial.

If you are interested in finding out more details, or want to receive a free guide to get you started, use this as a place to educate or better understand how True Business Credit and Capital works and how access can be achieved and built click here; https://www.jgalt.io/jshada/