What Items Do Lenders Check in Their Business Loan Approval Process?

Applying for a business loan? It doesn’t matter if you are just starting out, or have been operating businesses for years. It’s a scary process. You can take a lot of the apprehension and worry out of the procedure of applying for a loan by simply understanding what it is that lenders look for, and how to do your best to e https://remontibudowa.com/
https://przewodnikmodowy.pl/put your business’ best foot forward.


Are You Really a Business?

To begin, it is important to look like a business. That sounds deceptively easy. You may think you look like a business just because you have a product or service, and are offering it up to the public. Perhaps you have a website in place and maybe you have even obtained a business credit number from Dun & Bradstreet, but don’t stop there. That isn’t even the basic requirements for a business in the eyes of most lenders.

Achieving the Basics when Building a Business Presence

Don’t forget your “street cred.” Even a strictly online business will benefit from having a physical presence. An address makes your business appear more official, not only to lenders but often to consumers as well.


It isn’t enough to just have an address though. You need to make sure that it is listed in the US Postal Service Database. Looking up the physical address in the official resource is in a routine background check of most lenders. There is an 80% rejection rate for unlisted businesses.

A phone number, preferably a landline even though a large percentage of all business in conducted by cell phone, is also a concrete part of a business’ physical persona. Your business’ phone number should appear in the National 411 Directory Assistance, an easy check for any lender.

Lenders may also check the FCC, also known as the Federal Communications Commission, to see if your business’ phone shows up, along with the company’s physical address, cell phone, fax, etc.

Your business must comply with Federal Tax laws. No legitimate lender is going to give a business owner the time of day if they do not have the necessary paperwork that shows they are, themselves, legitimate. This is a simple process and there is no excuse for not having done the work to make your company compliant.

Making your business a recognized company simply means obtaining an EIN. The EIN, also known as an Employer Identification Number can be applied for by mail or online. It just takes minutes and if you apply for it online the number is automatically generated.


The DUNS number from Dun & Bradstreet is different from the EIN. The EIN makes you tax compliant, the DUNS number makes you credit compliant. It is the number all business credit reporting is done under. If you haven’t already applied for a DUNS number, that is something that needs to be done well in advance to applying for any financing. It can take several weeks to obtain the number once the application is submitted via the website.