To Obtain Business Capital Successfully, Every Business Requires A Coach

If you are a small business owner, obtaining business capital can be a daunting task. The majority of businesses fail as a result of never having been taught how to obtain financing and thus having no idea where to begin. According to the Small Business Administration, 97 percent of business loan applications are denied.

Due to the critical nature of seeking expert assistance when establishing business credit, many business owners seek assistance from a business finance coach. One of the most common errors made by business owners is to attempt to obtain financing for their business using their personal credit. Never use your social security number to obtain financing for your business. Personal credit must be maintained separately from business credit.

Until your business obtains three distinct business credit scores, any financing obtained by your business will be solely based on your personal credit scores and personal assets. A good illustration of this would be if you desired to purchase a home but lacked personal credit scores. You would be rejected, and financing a business is no exception. To be considered for a business loan, you must have established business credit scores. Establishing business credit scores is only the first step in the financing process. Twenty additional items must be in place prior to applying for business loans.

“Missing even one of the twenty items will result in your business being denied,” Financial Specialist James Christy explains. “By following the steps outlined by a good business finance coach, you can ensure that you have completed all of the items.”

For instance, lenders will deny a business loan application if the legal name of the business is incorrectly listed with 411 Directory Assistance. Another reason financing may be denied is if your business’s bank rating is less than a low five or if your business’s credit files with the three business credit reporting agencies are closed. Nowadays, the majority of lenders require businesses to have three good credit scores. These are just a few of the items that must be in place prior to seeking funding approval.

Establishing business credit is significantly more complicated than establishing personal credit. One business credit bureau will attempt to charge you $500 to open your credit file. You are not required to pay it, and a competent business finance coach will demonstrate why you are not required to pay it. A good finance coach will also set you up with all three credit reporting agencies.

A business finance coach walks business owners through the process of preparing their business to be approved for financing and how and why to build the business credit scores necessary to be approved. A coach will teach a business not only how to build business credit, but also how to build good business credit that banks and other lending institutions will use to approve your loan request. A good finance coach will typically point you in the direction of sources for business credit cards, vendor lines of credit, and other innovative financing options.

To locate a business finance coach who can assist your business in establishing excellent business credit scores, you can use Google, Yahoo, or MSN to conduct a search for the phrase “business finance coach.”

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