Credit & Compliance: You Can't Have One Without The Other
Have you ever purchased a new car? Financed a house? Applied for a loan at a bank? If so, then you may know more about understanding the basic reasons your business needs to be in compliance than you might realize.


    /Indiana News Articles/ - CARMEL, IN, March 26, 2008 - Have you ever purchased a new car? Financed a house? Applied for a loan at a bank? If so, then you may know more about understanding the basic reasons your business needs to be in compliance than you might realize. In business life as in personal life, compliance is critical for business credit eligibility.

As you likely learned with your house or car, there are a variety of things a lender "needs to see and understand" in order for you to be even eligible for credit—even before examining the financials. Do you have an address and contact information, pay stubs and tax forms, can you can establish payment histories, etc.

Seeking out business credit and financing by this comparison is similar. If you think of your business as an entity completely separate from your personal self (and have structured it as such), you will need to be in compliance with what institutions and financers need at the outset to even consider extending business credit.

Initial compliance checks include:
A legal business name
Physical address for the business
Business phone and fax line
State requirements (paid and current fees, lists of officers, current and past filings, etc.)
Federal requirements (Tax ID/EIN number, current and past filings, etc.)
Business or specific industry licenses/permits/fees

Don't let the seemingly obvious simplicity of this list fool you—each level of compliance has it's own demands—requirements that insist on proper and consistent documentation of the information you provide about the business. If you consider what you provided during your home or car financing experience, is this any different?

While it is true that different lenders and institutions set their financing bar at different levels of compliance, there is a simple truth to be understood: A lender or financer needs to understand that the business is REAL in order to even begin the process of extending business credit.

Obviously, we're holding back a lot of information here—we haven't told you, for example, how a simple phone call from a lender may reduce your chances for business credit, or told you what one special number is required for any business credit application. This is why we've created our coursework and our consulting services in the first place.

Just know beyond a shadow of a doubt, that without compliance there is virtually no chance you'll be extended business credit.

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Press Release Contact Information:

John Eubanks
Liberty Business Services
President
90 Executive Drive Suite H
Carmel, IN
United States 46032
Voice: 317-569-1110
Website: Visit Our Website