Fastest Way to Build Business Credit and get Funding

Starting or expanding a business requires more than just a great idea and determination; it often necessitates financial backing. Whether you're an entrepreneur with a revolutionary concept or an established business seeking to grow, securing funding is a crucial step. However, navigating the landscape of business financing can be daunting. In this comprehensive guide, we'll walk you through various avenues and strategies to successfully build business credit and secure funding for your business. 

Simple steps to build business credit from scratch:

1. Open an LLC
2. Get an EIN from Irs.gov
3. Get a virtual business address
4. Get a virtual business phone
5. Open a business checking account
6. Get a website or landing page

The next few steps are critical and is where most entrepreneurs get lost or make errors. I know I did. These mistakes will prevent you from getting business credit and funding. Continue reading below to see the fastest way to instant business credit and funding. By the way, INSTANT means you get approved by a computer and there is no manual underwriting from a person.

It may take some time to get funding so be sure to Explore Traditional Financing Options such as:

• Bank Loans: Traditional bank loans are a common avenue for business financing. They typically offer competitive interest rates and structured repayment plans. However, securing a bank loan may require a solid credit history, collateral, and a well-documented business plan.
• Small Business Administration (SBA) Loans: SBA loans are backed by the U.S. Small Business Administration, providing favorable terms and lower down payments. These loans are ideal for businesses that may not qualify for traditional bank loans.
• Credit Unions: Credit unions often offer business loans with favorable terms to their members. They may be more flexible than traditional banks in terms of eligibility criteria and loan terms.

Consider Alternative Funding Sources:

• Small Business Funding: 

  Small business funding refers to the financial resources that entrepreneurs and small business owners seek to start, operate, or expand their businesses. There are various options available for small business funding for emergencies, including loans from banks or alternative lenders, investment from venture capitalists or angel investors, crowdfunding campaigns, grants from government or private organizations, and personal savings or contributions from family and friends. Each funding option has its own requirements, terms, and implications for the business owner. Access to adequate funding is crucial for small business owners to cover startup costs, purchase inventory or equipment, hire employees, and sustain operations during growth phases. Successful small business funding strategies involve careful planning, financial management, and  consideration of the business's unique needs and goals.

• Venture Capital:

  Venture capital firms invest in startups and high-growth businesses in exchange for equity ownership. While venture capital can provide significant funding, it often requires giving up a portion of ownership and adhering to rigorous growth expectations.

• Angel Investors:

  Angel investors are individuals who provide capital to startups in exchange for ownership equity or convertible debt. They may offer mentorship and industry connections along with funding.

• Merchant Cash Advance: 

  A merchant cash advance (MCA) is a financing option for businesses where a lender provides a lump sum of cash in exchange for a percentage of the business's future credit card sales. This type of funding is particularly common in industries like retail and hospitality, where businesses have consistent credit card transactions. The repayment of the cash advance is made through an automated process, where a fixed percentage of daily credit card sales is withheld by the payment processor and transferred directly to the lender until the advance is fully repaid, along with fees. MCAs can be relatively quick and accessible compared to traditional loans, making them attractive for businesses needing immediate capital. However, merchant cash advances often come with higher fees and interest rates than conventional financing options, so careful consideration of the terms and potential impact on cash flow is essential before pursuing this type of funding.

From my experience, the fastest way to build business credit and get instant business funding was following these steps:

• Open Business Checking Account 

Novo bank is a free and easy way to start a business checking account online. You can also use your local bank or credit union to get a checking account fast.

• Get Commercial Business Address

Getting a commercial business address is important to your success for fast and instant business funding. If you don't want a brick and mortal business, opt for a Virtual Business address from Opus. UPS and P.O. Box address will not help for Instant Business Funding.

• Professional Online Presence

Getting a domain name for your business with a professional website is vital. Think about how you decide to do business with a company or not. You will likely google the company. If you are unable to find a website, you may think they are not a legal company. On Blue Host you can quickly get a website template and free domain name.

• Business Phone

Getting a business phone with professional features is easier than you might think. Virtual business phones are inexpensive and connect to your mobile phone effortlessly. Get a free trial from Grasshopper or Ring Central.

• Get Dun and Bradstreet number

D&B is the top business credit reporting agency. It's important to get a Duns number and you don't need to buy their products. They will call you trying to sell a service. You can do this service yourself to build business credit fast.

• List Yourself Online

After you've completed all the tasks mentioned above, the next step is to list yourself in the online director. I recommend using whitepages.com or listyourself.net.

• Business Credit Score

NAV makes it simple to track your business credit scores. They also make recommendations for business funding products. You can get your business credit score fast with NAV. The goal is an 80 Paydex score. 

Consistency is Key

Remember to be consistent across the board with your business details when building business credit. Having identical information on google, Duns and Bradstreet, and your website is what consistency looks like. This is vital for getting instant approvals. You don't want suite 16 on D&B but suite 19 on a google search.

I hope this information was helpful! Leave your comments or questions below. 

P.S. Don't forget I'm basically giving away the business credit bundle 5 products for 1 including the Business Credit E-Book. 

Read Other Related Articles

1. Business Credit for New LLC's | 3 Steps
2. How to Get Business Loans 2024
3. Fix Personal Credit to Get Approved
4. Improve Credit Score for Home Loans
5. 5 Business Credit Cards for Start Ups

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