A few tips on some things you should have in place if you’re self employed and want to be able to get loans/financing with that income. A quick thread.

First and foremost your business needs a bank account that is ONLY used for business.

Run every single purchase from the business through this account and also deposit every single payment or source of revenue through here too.

You’re establishing proof of income.

Even when you put yourself write your personal account a check from your business account.

Once you build up revenue try to make it consistent payments.

Ex: pay yourself every 1st and 3rd Monday. It can be as little as $300 a check. Budget yourself in and stay consistent.

Also don’t empty your business account out each month. Budget a small amount of our for yourself until you can afford more but honestly you may have to have other income streams for yourself until the biz grows.

You can use your biz acct as proof of income so don’t keep it on 0

Next if you’re doing any type of consistent work for a client or company put a contract in place. Doesn’t have to be long or very detailed but lenders love to see that you have actual contracts in place.

You can leverage those.

Set up quick books or another accounting system that will help you categorize each transaction.

Also these make it really simple to track things like mileage and other tax deductible fees

They also make it easy to create reports and Lenders love reports.

Establish a Dun & Bradstreet number. The more established your business is the more respect they’ll give to the check you collect from that business.

Plus this number gives you access to more funds not tied to your name but that’s a diff thread.

With your checking account have a savings account.

Put 20-30% a month into that account for taxes.

Pay your taxes quarterly. In order to secure funding they want to see tax returns. File as soon as you can to get this established.

These are basics. Once you get 4-6 months in and you’re really serious you need a CPA to help you so that you can focus on making $ and they can focus on tracking, and leveraging it

Also as @capital_sb noted once you’re able to afford those payroll taxes and fees you want to just set yourself and your team up on payroll to move away from writing yourself a check.

But starting out a check is fine and it establishes a track record of growth.

The key to everything in life including business and money is track record and relationships. Consistency builds these.

Start now where you are establishing a history for your business. Starting small is great so they can see your growth when they pull you up.

I’ve been saying bank account but this here is really a CREDIT UNION stan account. I highly highly recommend credit unions.

When you get that account establish a relationship with one of the bankers.

Make them your person. Email and call them for important and new business so they can get to know you. When you’re considering that lending go straight to them. They’ll be your cheerleader.

Don’t ever do your business with random tellers and whoever happens to be at the branch.

You need 1-2 main people that introduce you to the other people and speak highly of you.

“Kristian’s been here 3yrs we’ve watched her business grow with us!”