7 Steps to a Business Line of Credit
The Federal Bureau of Labor and Statistics reports that 33% of all businesses fail within the first two years of operation because they lack adequate cash reserves to manage their expenses until the business can sustain itself from its revenues.
A business line of credit is an essential tool in getting access to the cash you need to keep your doors open before you start turning a profit, and beyond. Despite what you may have heard about most lenders' underwriting procedures and their changes with the current economy, a business line of credit is within your reach.
A common myth is that you must be in business for two years or more to obtain a business line of credit. In fact, most business banks can approve you for a line the same day you file your corporate papers.
Over the past few years I've helped entrepreneurs and small businesses, including my own, get their business lines, and in doing so, we’ve identified 7 steps you can take to get your very own business line of credit. They're relatively simple to accomplish, each one building on the work of the step before it. Things like:
- Obtaining a federal identification number for your business
- Obtaining a business license
- Organizing your business legal documents
- Preparing your business financial reports
- Dealing with your local lender
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