Setting up a fundable business

The infrastructure lenders expect to see

Before applying for funding, your business has to look like a real business to any lender pulling your file. This takes a weekend and under $500 total.

Lenders have a checklist. Miss any item and you trigger a denial, even with strong financials. Miss three and you're denied before they even look at your numbers.

Complete every item before applying.

Steps

1. Form an LLC or corporation. Sole proprietorships aren't real businesses to most lenders. File with your Secretary of State. $50 to $500 depending on state.

2. Get an EIN. Free. 10 minutes at IRS.gov. Your business tax ID and the foundation for business credit.

3. Get a D-U-N-S number. Free from dnb.com. Takes about 30 days. Required for D&B PAYDEX and many lenders.

4. Open a dedicated business bank account. Every business transaction goes through it. Never mix personal and business expenses. One change, big fundability boost.

5. Get a business address. Physical or premium virtual office. PO Box or home looks amateur. Virtual offices through Regus: $50 to $150/mo.

6. Get a business phone. Dedicated business line, not your cell. Google Voice (free) or VOIP. Listed on your site and documents.

7. Build a real website. Professional domain, clear description, contact info, team if applicable. Even a simple one-pager beats nothing.

8. Get listed in business directories. Google Business Profile, Yelp, Bing Places, industry directories. Verifiability signals your business is real.

9. Get required business licenses. Check city, county, and state requirements. Missing licenses can void your funding application.