When trying to finance your business, there are four levels you need to know.
Unfortunately, as high as 80 to 90 percent of all business loans applications end up being declined. This is because in business lending there is much more to it than there is in personal lending. Your business loan application can be declined because the lender you submitted to does not approve businesses who don't have an FCC database listed business phone number. Unfortunately, you operate your business from a cell phone, and you didn't know that would get you declined. Another lender requires business credit scores above 70, and you didn't know your business credit scores before you applied.
So let's look at the four levels that play a role in your business loan approval:
Level 1 - Lender Compliance. Lender Compliance is a series of 20 items that many lenders will check all or some of in their finance approval process. These items are simple to complete if you know what they are. They are things like having a USPS listed business address. Having an FCC listed business phone number. Making sure your business is in the national 411 database. Making sure your business is listed as "in good standing" with your Secretary of State and 16 more.
Level 2 - Owner's Credit. The credit scores of business owners with at least 15% equity are vital to obtaining business financing. If you haven't taken the time to optimize your personal credit scores before you apply for business loans, you are limiting your ability to get approved. The optimal FICO score for a business loan approval is 720 and above.
Level 3 - Business Credit. Your business entity must have its own credit scores that are separate from your personal scores. Your business needs to have business credit scores that are 70 or above with all three business credit reporting agencies, which are Experian Business Information Services, Equifax Business and Dun & Bradstreet.
Level 4 - Finance Programs. There is nothing more important than knowing if you pre-qualify before you submit applications. That is why the business finance pre-qualification test is so important to your approval success. The number one reason that business loan applications get declined is because business owners apply first and ask questions later. It stands to reason that if you know what they require to approve you before you apply then you stand a much better chance of getting approved.
Level4Finance is all about giving you all the tools to get approved for business financing.
We will show you how to complete all Lender Compliance Items, how to optimize your personal credit scores, how to build and maintain strong business credit scores, and how to know what the lender approval requirements are before you apply. It all starts by completing the business finance pre-qualification test.