- 1). Assess your personal credit history. Maintain a healthy FICO credit score and keep tabs on all three credit reporting agencies (TransUnion, Experian and Equifax) to make certain your personal records are accurate and current. Apply for a business tax ID number by visiting IRS.gov and downloading Form SS-4 in PDF format.
- 2). Invest your own cash into your business to show prospective lenders that you've already created a cash reserve for future expenses and are ready and willing to risk your financial security on your business. Open a checking account and deposit the funds into a dedicated account attached to your new tax ID number.
- 3). Prepare an asset list to prove to financial institutions that you've got enough equity to take care of much of the financial debt you're seeking to incur. Gather five years' worth of income tax returns and other records that document at least three sources of assets--particularly highly liquid funds--that can be retrieved in short order.
- 4). Offer proof of previous business dealings that demonstrate your ability to make wise decisions about business risks you've undertaken. Retrieve balance sheets, profit and loss statements, and accounting documents that attest to a successful history of past dealings.
- 5). Look to your state as a possible resource for your first business loan, particularly if you're seeking $25,000 or less (see Maryland link below) as you may have a better chance of successfully qualifying for a cash infusion for your business startup.
- 6). Remember that character, trustworthiness and personal history are important, for when lenders look at applicants, they may find themselves on the fence. Your personal history and proven integrity might just tip the scales in your favor.
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