You can have a home-based business but it will limit your access to certain lenders.
Building strong business credit and getting approved for financing is all about paying attention to the details. It is very important that we have your exact business legal name. This includes the recorded DBA filing you will be using. It is not required to have a DBA, but if you need one (or already have one) there are potential issues to be aware of.
Filing DBAs for your Corporation or LLC can cause multiple credit files to open if you’re not careful. For example, say your business bank account is under “ABC Corporation” but you open a credit account as “ABC Corporation, dba ABC Tire Service”, and you have another credit account that you opened as just “ABC Tire Service”.
What will happen in the above example is that your business ends up with three open credit files under all three names…and now you have a mess. If you’re going to use a DBA you’ll need to avoid creating duplicate credit files. All banking, utilities, offices leases, credit accounts, etc. must be opened as “ABC Corporation dba ABC Tire Service”.
Business Address and Location:
The address of your business needs to look like a business address. Do not use a post office box. You can use your home address for business credit building, but be aware that some lenders will not fund “home based” businesses. This will not stop you from building business credit scores, but may limit your funding options.
Our system is integrated with the USPS database. So the best way to know if the address you are using will work or not is to test it. Put the address in and click “save and continue”. Then come back to this page. If the address shows “residential or mail stop” it is something you will need to fix. If the address comes back as “business or unknown”, you are fine using that address for your business.
Compliance Item – USPS Listed Business Address