Even with President Barack Obama’s recent allocation of $30 billion to banks that make loans to small businesses, many entrepreneurs reportedly struggle to find sufficient funds. Additionally, recent legislation proposed by Senator Dodd might render a number of angel investors no longer credible.
A report from Fox Business offers some insight on how business owners might become more appealing to lenders in trying times. To start, it’s important to have a solid business plan for lenders to review. This will also help an entreprenuer stay on track with business goals.
Another important thing to remember is that a credit score says a lot about a businessperson’s financial responsibility. Checking a credit statement and knowing personal weak sports in advance can help an entrepreneur head off concerns a lender may have.
These factors are important, but the source reports that business incoporporation may be the best way to secure funds. When lenders understand an entrepreneur has taken legal measures to protect themselves and their business associates, they may feel more comfortable about making an investment with a new firm.
Moreover, adding Inc. or LLC to a business name adds instant credibility – not only to lenders, but also to potential business partners, employees and customers. The source suggests incorporation makes it clear that a company means business and is not just a hobby.
To learn more about inexpensive options for forming a company, entrepreneurs can visit online incorporation sites.
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