Lender Friendly Business Name

[Aaron Gauthier]

I’m in the process of naming my small investment company, which will primarily focus on real estate but will also branch out into other types of investments. I’m trying to figure out what suffix (like "Holdings," "Ventures," "Capital," etc.) is the best fit for my company—one that is broad enough to allow for future diversification but also professional and lender-friendly.

A company that helps form LLCs advised me to stay away from suffixes that have strong financial connotations, such as “Capital,” “Assets,” or “Investments.” They mentioned that using these terms might cause me to not get the best rates or a reduced line of credit due to being seen as a competitor. 

Has anyone experienced this?

With that in mind, what suffixes do you recommend or not recommend for a small, diverse investment company to ensure the name is lender-friendly and doesn’t raise any red flags?

[Lauren Robins]

You're getting solid advice regarding your company's name. Many lenders and financial institutions tend to scrutinize businesses with names that include terms like "Capital," "Investments," or "Assets." These words often signal that a company is in the financial services industry, which can lead to unnecessary regulatory scrutiny or even make it harder to secure favorable lending terms. Some banks may also view such companies as potential competitors and, as a result, offer reduced lines of credit or higher interest rates.

To keep your company name broad, professional, and lender-friendly, consider using a suffix like "Holdings," "Ventures," "Group," "Partners," "Enterprises," "Properties," or "Management." These terms suggest a well-structured business while remaining flexible enough for diversification. "Holdings" is a particularly strong option if your goal is to own and manage various assets over time, while "Ventures" conveys an entrepreneurial spirit without tying you to a specific industry. If you want to emphasize real estate without sounding overly financial, "Properties" or "Management" are good alternatives.

On the other hand, it's wise to avoid suffixes that could raise red flags with lenders. Names containing "Capital," "Investments," "Financial," "Funding," "Trust," "Wealth," "Securities," or "Equity" may cause banks to classify your business as high-risk or regulatory-heavy. This could lead to stricter underwriting requirements, making it more difficult or costly to obtain loans and credit lines.

Given your focus on real estate with plans for future diversification, "Holdings" or "Ventures" would likely be the best choices. They provide a professional image, maintain flexibility for growth, and keep the company lender-friendly. Let me know if you need any more ideas.