Building a strong credit profile is vital to the long term success of your business. If you ever decide to secure financing for your business, the first thing that lenders do is to verify your business profile for fraud. They will also check the credibility of your business through credit reports.
So before you decide to apply for a small business loan, you should get a business “checkup” to make sure you’re in good financial standing.
Sure, the “checkup” may be frustrating at times but if you follow the list below, you will distinguish your business apart from others and give off a vibe of professionalism to lenders. This will indicate to them that you are thorough and responsible. Therefore, you will be a great credit risk!
Below is an overview of what most traditional and alternative lenders will look for. While some of these might seem minor to you it is absolutely vital that you address each one before talking to the lender or applying for a loan.
Ultimately, you must have everything in place before presenting your loan application to potential lenders. As you are going over the checklist above, make sure to check them off once everything is in good standing. At the same time, be honest and transparent with your lenders in order to gain their trust. Be open about the potential downfalls of your business, the solutions you have in mind and how you plan on overcoming other challenges that might come your way.