28d • 💰 Funding Formula
Do You Have a Lender Friendly Business Name?
Most credit applications are now done online and with AI underwriting. A cursory review of your business name could place you in a high-risk industry and get you an instant credit denial.
You don’t want a business name that indicates a high-risk industry (like real estate investing or money lending) . You want generic lender friendly names such as “ABC Enterprises”, “ABC Solutions”, ABC Holdings”, or ABC Ventures”. Nothing that indicates any particular industry, especially a high-risk one.
If you already have formed a business (LLC or Corporation) with a high-risk industry designation name you can try creating a “DBA” (doing business as) and use that name on credit applications. Use your EIN number for the LLC or Corp and use the DBA name on the application. Both are filed and will show up on the Secretary of States website or Department of Corporations website depending on what state you are domiciled in. https://www.secstates.com/
Example: corporate name = “ABC Real Estate Investments”. Create a DBA name like “ABC Enterprises or ABC Holdings”. If a DBA name won’t work, I suggest starting a whole new LLC. Don’t be caught with a high-risk industry indicated in your business name.
Note: Not all lenders find the same industries as high-risk or unacceptable. It varies from lender to lender. Certain alternative finance lenders actually cater to high-risk industries. Of course, their funding options will come at a premium cost.
Do you have a high-risk business name? (See attachment).
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Do You Have a Lender Friendly Business Name?
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