Establishing credit for your company has some simple straight forward things to do. There are also some not so obvious things to do. What you call your business can "red flag" the funding process.
Here are a few things to consider when choosing an appropriate name for your business. First, you must see if your name is available from your state's Secretary of State. If it seems too good, another business may already be using it. Assuming your first choice is available what next?
Due diligence would suggest you check to see that the name is not trademarked or patented. This can save you some embarrassment and goodwill. If you start marketing a name of another company they can put a cease and desist order on you using it. That could also be expensive if you have to go back and change your marketing materials.
Now, what not to do. There are certain words to avoid if at all possible. Words that describe certain industries tend to be frowned upon when it comes to getting credit for your business.
Avoid words in your name relating to finance or real estate. For example, John's Real Estate Investment Advisor Services, Inc. might sound great. Unfortunately, that name has two red flags in it; real estate and investment.
However, John's Management & Consulting Services, Inc. will have a far greater level of success to obtaining company funding just by changing a couple of words.
When choosing your business's name just think about it in those terms. Does it sound speculative or risky? If it will raise suspicion to a lender, then think of an alternative word instead.
What if you already named your company something that lenders will frown upon? If you just started your company you could just dissolve it and start a new one.
However, requesting a simple name change form for your entity will probably be the easiest and cheapest thing to do. Just remember to add that amendment to your articles of incorporation. Most states have very simple procedures for this. It must be a mistake a lot of people make.
You need to make sure that your business is set up properly before you start to apply for credit. If you make just one little mistake your access to funding will be denied and could cause your company to be flagged by the credit bureaus.
For more information and tips to get your business all the credit it deserves, I invite you to visit http://www.freecorporatecreditinfo.com and get your free copy of the ebook that explains all the details to establish and obtain business credit.
Chris Swain - Wealth Coach
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