Winning Questions to Ask Your Banker!
About two years ago, I worked with a national bank to break down their lending process for start-up business owners. As you know, banks do not educate you on how they lend money.
The process would be that you would receive an application and it goes to underwriting. That is where the criteria are held mostly in secret. You may hear about general criteria to apply for a business credit card, business line of credit or a business loan, but you will not receive the exact formula!
Here is a list of the key questions to ask your banker when you apply for a business credit card in the name of your new LLC or corporation:
1. What is the lowest my credit score have to be to get approved for the highest credit card limit?
2. When you pull my credit score which personal credit bureau do you pull my score from? It is Experian®, Equifax or Transunion®? (keep in mind it may be different if you were applying for a business line of credit or a loan).
3. What does my personal revolving debt ratios have to be at to qualify for a business credit card?
4. What are your current derogatories that would cause me to get automatically rejected by your bank? In other words, a bank will reject you for a bankruptcy, foreclosure, excessive late payments and large revolving debt settled in the past.
You will receive resistance when you ask these questions because the bankers are not used to working with an educated small business owners. Be persistent and ask them to check with their underwriter and get back to you!
Now, you will be in a better position to find out if you have a shot at receiving financing help from the bank!
About The Author: Scott Letourneau is the CEO of Fast Business Credit, Inc. When it comes to securing cash and vendor lines of credit and avoiding costly mistakes his company is the authority. For further assistance regarding the development of business credit go to http://www.FastBusinessCredit.com or call FBC at 1-888-313-6333 or 702-977-5246.