Business credit

[Darrell Hayes]

Hi I am trying to build business credit, does anyone know the requirements lenders want when approveing.

such as business phone or is a second phone service app good enough.

Address to business will I know it has to be a real address not a p.o. Box, but ups stores have boxes with real street address. Looking for as much info as I can get. Thanks 

[Stanley Whigham]

Whenever I consult with business clients, I go with them to the bank to apply for business checking accounts. I advise them to open business checking accounts in at least 2 banks. Prior to opening the business checking accounts they do these things: 1) Establish a Dun & Bradstreet profile to reflect 3 years business of experience. If your business has been incorporated less than 3 years, the IRS will allow your sole proprietor experience on your business Employer Identification Number (EIN) application. Next, an online presence is established using your sole proprietor experience in your business listing profiles.  Banks do a Google Search of your business name and address while asking questions about your company's gross sales, net income, number of employees-- you need 5, etc. Your company online presence will show 2 pages on Google with your business occupying all ten spaces, i.e., the whole page. When your business shows up on 2 pages of Google, your business has established a good advertising presence and passes the first test.  2) Get an office in a commercially zoned area. Banks can tell if you are using virtual offices or UPS boxes. They feel it shows lack of stability in business. Go to an older part of town where rents are cheaper.  3) Maintain your good credit (700+) -- it is your key to getting a business credit card while opening business checking accounts and fast-tracking your business credit development.  Most banks will give you a business credit card with a $7,500 credit limit when you take the time to establish a good D&B profile, get a business phone (Google Voice is a voice over ip and is considered a landline), address and online presence. With one business credit card, you can leverage your business credit profile very quickly. When your card(s) come in the mail, go apply for a COSTCO business credit card (with bank business credit card in hand). Soon (3 - 6 months), you will have multiple credit lines established on all 3 business credit bureaus. Large unsecured lines can be obtained once a favorable bank rating is established for 3 months at your new business bank accounts. Now your company can survive beyond 5 years because it has working capital for emergencies.