Fundable Tips for Entrepreneurs and Small Business Owners at Local Credit Unions
Published July 26, 2024
By V.Goodwin
3-Minute Read
Hey there, Small Business Owners and Entrepreneur Extraordinaire! Are you tired of spinning your wheels trying to qualify for that much-needed business credit or loan from your local credit union? Put on your seatbelt because we're about to take a high-speed shortcut through the clutter and get you RIGHT where you need to be—funded and fabulous!
**Step 1: Nail Down Your Business Entity**
First, you need to ensure your business is officially recognized. Forming an LLC or a corporation instantly boosts your fundability. Get those incorporation documents in order, and voilà! You're already one step closer to being credible and legitimate in the eyes of your local credit union.
**Step 2: Business Bank Account—Stat!**
You've heard the saying, "Don't mix business with pleasure," right? Well, don't mix personal banking with business banking, either. Open a business bank account to separate your finances from your professional affairs. This single move underscores that you mean BUSINESS!
**Step 3: Get Your EIN and DUNS Numbers**
Your Employer Identification Number (EIN) from the IRS is your business's social security number, and your Data Universal Numbering System (DUNS) number is like its credit score. These numbers are critical when you're aiming to be fundable. They show your credit union that your business is serious and ready for financial interactions.
**Step 4: Establish a Business Credit Profile**
Signing up with business credit bureaus like Experian, Equifax, and Dun & Bradstreet will give you a solid footing. You'll want to start building a credit profile as soon as possible. That way, when your local credit union does its due diligence, it pulls up glowing reviews of your financial solvency.
**Step 5: Smart Vendor Relationships**
Start small, but think big. Establish relationships with vendors who report to business credit bureaus. Pay on time, every time. Not only does this build your credit score, but it also establishes a track record of financial responsibility. This tip alone could be the ace in your pocket when courting credit unions.
**Step 6: Get a Business Phone Number and Address**
A simple but often overlooked step is ensuring your business has a dedicated phone number and address. This doesn't mean breaking the bank with a new office lease—you can use a virtual office. It's about making your business look professional.
**Step 7: Craft a Killer Business Plan**
Everyone dislikes writing long documents, but a comprehensive business plan is your blueprint to success. It illustrates to the credit union that you know where you're going and, more importantly, how you will get there. The Executive Summary should be so captivating that it becomes your secret weapon!
**Step 8: Prepare Financial Statements**
Get those financial ducks in a row, including profit and loss statements, balance sheets, and cash flow projections. Your local credit union wants to see that your business is not just a flash in the pan but a burning and sustainable flame of profitability.
**Step 9: Boast About Your Personal Credit**
If you have good personal credit, don't be shy about it! Your credit union will review your finances to gauge your financial responsibility. Good personal credit can be a significant asset when getting your business funded, especially if your business credit is still fledgling.
**Step 10: Meet the Credit Union's Criteria**
Each credit union has its quirky requirements, so do your homework. Familiarize yourself with your target credit union needs and tailor your application. If their criteria seem Greek to you, contact a Small Business Advisor—most credit unions offer this service for free!
**Step 11: Become a Member of the Credit Union**
Last but not least, ensure that you or your business is officially a member of the credit union you're planning to woo. Membership often comes with fab perks, including lower loan rates and higher chances of approval.
**Conclusion: Get Ready to Secure That $$$!**
By now, you've got the insider knowledge that others spend years figuring out. Take each step seriously; soon enough, you'll see your local credit union rolling out the red carpet for your business. It's time to go from dreaming to doing! Get those documents in order and make your business irresistible to lenders.
Your fundable future awaits—don't miss out!
By V.Goodwin
3-Minute Read
Hey there, Small Business Owners and Entrepreneur Extraordinaire! Are you tired of spinning your wheels trying to qualify for that much-needed business credit or loan from your local credit union? Put on your seatbelt because we're about to take a high-speed shortcut through the clutter and get you RIGHT where you need to be—funded and fabulous!
**Step 1: Nail Down Your Business Entity**
First, you need to ensure your business is officially recognized. Forming an LLC or a corporation instantly boosts your fundability. Get those incorporation documents in order, and voilà! You're already one step closer to being credible and legitimate in the eyes of your local credit union.
**Step 2: Business Bank Account—Stat!**
You've heard the saying, "Don't mix business with pleasure," right? Well, don't mix personal banking with business banking, either. Open a business bank account to separate your finances from your professional affairs. This single move underscores that you mean BUSINESS!
**Step 3: Get Your EIN and DUNS Numbers**
Your Employer Identification Number (EIN) from the IRS is your business's social security number, and your Data Universal Numbering System (DUNS) number is like its credit score. These numbers are critical when you're aiming to be fundable. They show your credit union that your business is serious and ready for financial interactions.
**Step 4: Establish a Business Credit Profile**
Signing up with business credit bureaus like Experian, Equifax, and Dun & Bradstreet will give you a solid footing. You'll want to start building a credit profile as soon as possible. That way, when your local credit union does its due diligence, it pulls up glowing reviews of your financial solvency.
**Step 5: Smart Vendor Relationships**
Start small, but think big. Establish relationships with vendors who report to business credit bureaus. Pay on time, every time. Not only does this build your credit score, but it also establishes a track record of financial responsibility. This tip alone could be the ace in your pocket when courting credit unions.
**Step 6: Get a Business Phone Number and Address**
A simple but often overlooked step is ensuring your business has a dedicated phone number and address. This doesn't mean breaking the bank with a new office lease—you can use a virtual office. It's about making your business look professional.
**Step 7: Craft a Killer Business Plan**
Everyone dislikes writing long documents, but a comprehensive business plan is your blueprint to success. It illustrates to the credit union that you know where you're going and, more importantly, how you will get there. The Executive Summary should be so captivating that it becomes your secret weapon!
**Step 8: Prepare Financial Statements**
Get those financial ducks in a row, including profit and loss statements, balance sheets, and cash flow projections. Your local credit union wants to see that your business is not just a flash in the pan but a burning and sustainable flame of profitability.
**Step 9: Boast About Your Personal Credit**
If you have good personal credit, don't be shy about it! Your credit union will review your finances to gauge your financial responsibility. Good personal credit can be a significant asset when getting your business funded, especially if your business credit is still fledgling.
**Step 10: Meet the Credit Union's Criteria**
Each credit union has its quirky requirements, so do your homework. Familiarize yourself with your target credit union needs and tailor your application. If their criteria seem Greek to you, contact a Small Business Advisor—most credit unions offer this service for free!
**Step 11: Become a Member of the Credit Union**
Last but not least, ensure that you or your business is officially a member of the credit union you're planning to woo. Membership often comes with fab perks, including lower loan rates and higher chances of approval.
**Conclusion: Get Ready to Secure That $$$!**
By now, you've got the insider knowledge that others spend years figuring out. Take each step seriously; soon enough, you'll see your local credit union rolling out the red carpet for your business. It's time to go from dreaming to doing! Get those documents in order and make your business irresistible to lenders.
Your fundable future awaits—don't miss out!