FREE INTRODUCTORY READING · GENERAL EDUCATION
Start with the business model
Describe who pays you, what it costs to deliver, and when cash arrives. Revenue, profit and available cash are different measures. A financing plan should begin with realistic cash flow and the ability to repay.
An entity is not a funding approval
An LLC can help establish a distinct legal structure, but formation alone does not create creditworthiness or erase personal obligations. Lenders may require personal credit review, collateral or a personal guarantee. Ask qualified legal and tax advisers about your circumstances.
Separate records, understand connections
Separate business banking and accurate books help document business activity. Business and personal credit files are distinct, but a guarantee or a product’s reporting practices can connect the risks. Never substitute an EIN for an SSN where an application requires personal identification.
Learn the business-credit landscape
Dun & Bradstreet, Experian and Equifax offer business credit information and products. A D-U-N-S Number identifies a business in D&B’s system; it is not itself a credit score or loan approval. A future lesson will compare bureau products, source coverage and permitted ways to correct business information.