Like music to their money-making ears, these are two words every current business owner was undoubtedly thrilled to hear when applying for business credit.
Like nails on a chalkboard, these are two words that any hopeful pre-business owner must face when trying to apply for that all too important loan.
In many cases, when a business applicant leaves a bank, after being shot down in the application process, they have no clue as to why they were not approved. You don’t always get a good reason why, rejections are not always explained. But chances are, said business hopefuls most likely failed the lender compliance test. For any of you wishful, soon-to-be business owners out there, working diligently toward gaining credit and/or loan approval, this article’s for you.
So what exactly is “lender compliance” and how do I go about achieving it?
Lender compliance is essentially a series of guidelines that have been established by the lender(s) as part of their approval decision-making process. These are usually items that can be easily verified in an automated environment. So, when you submit an application for a business loan, the lender’s computer system will vet these lender compliance items to see if your business will proceed to the next level in the process of approving the loan.
Generally, lender compliance factors will not get a business approved alone, however they will undoubtedly get a business declined if its entity has not completed or established them prior to applying.
One example of a crucial lender compliance item is whether or not a business is operated from a cellular or residential phone. The phone number you list on the loan application will be checked using the Federal Communications Commission database to verify it is a business phone line, cell or residentially registered phone number. In the majority of these cases, lenders will turn down an application for a business loan where the business does not have a business listed phone number.
Now, as for the second part of the question: how do I go about achieving it? This is where virtual office space comes in. Obtaining a business phone number is both quick and easy via the usage of a virtual office, such as those offered by Alliance Virtual Offices. By signing up for any one of Alliance Virtual’s hundreds of global virtual offices, users typically get their choice of one of several affordable package plans that come with an array of “virtual” work solutions – one of them being a solid, lender approved business phone number.
So, if you are planning to start a business and hope to receive a loan, make sure you’ve got your lender compliance checklist taken care of … starting with your business phone number.