6. Do an entity search
Do a search of your entity records within your federal and local jurisdictions, where applicable, to make sure the government records accurately reflect your company identity. Such records can include the names and titles of the current directors and officers of the company.
In the USA, consult your Secretary of State, and in Canada you’ll want to check with your provincial or federal government responsible for corporation or other entities. You can also ask your lawyer to help with this step, as they will likely have the most current information and access to the government records.
Over time, there can be turnover in your company — like directors or officers leaving the business. So get these records cleaned up to reflect the current situation and you’ll come across more trustworthy and reliable.
Lenders entity search
Most lenders will also perform this entity search, so records should align with your company’s reality. For example, if you introduce yourself as the president of the company, but the government records say otherwise, then you lose credibility.
By doing these simple things you’ll set your business apart from others looking for financing. Lenders will be more inclined and able to help you out quickly.
Remember this checklist:
- Correct any inaccurate security registrations
- Make sure your credit report accurately reflects your reality
- Create a shortlist for lenders you want to meet
- Research online lenders, applications and terms before completing any forms
- Organize and update all financial statements and your business plan
- Review and update all government records
Completing these steps will not just make you more “lender friendly” but also a sought-after candidate. That puts you in a stronger position.
When having a conversation with an investor or lender, you’ll be able to properly speak to their key concerns and priorities, pass along accurate company information and complete applications with much more ease — when you’ve chosen the most appropriate lender for your needs and circumstances.
Even if you don’t need financing right now, performing all of these tasks once a year will be a useful exercise to keep your company healthy and prepare you for future financing when needed.
Prepare your business for secure financing to ensure healthy growth.
Want to learn how to make the most out of your business cash flow? Check out the Cash Cycle Guide.
Need help with your business financing strategy?