Small business guide
Mixing the two makes your books unreadable and your statements hard to explain. Separating them takes an afternoon and pays off at tax time and at every funding review.
✓ Checking what you qualify for does not affect your credit score.
| Step | What to do |
|---|---|
| 1. Open a business checking account | Use your business name and keep every business deposit and payment in it |
| 2. Use a business card for expenses | Keep it for business use only |
| 3. Pay yourself on a schedule | Transfer an owner draw or run payroll, instead of paying personal bills from the business account |
| 4. Record every transfer | Label owner contributions and draws so the books stay accurate |
Start the new accounts today and do not try to untangle everything at once. For the past period, sort transactions by whether they were business or personal and move personal ones to an owner draw. An accountant can help with the cleanup.
A funder reads your business bank statements. When personal spending runs through them, deposits and balances are harder to read. A dedicated account makes the file clearer and faster to review.
Clean books make a funding review faster, because the numbers a funder reads in your bank statements match what you can explain. We fund from $25,000 to $5,000,000, decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses. We read about three months of business bank statements, consider owners with a FICO score of 500 or above, and sole proprietors can apply.
See bookkeeping habits that make funding easier and the financial statements funders want, then start your application. It takes about five minutes and begins with a soft credit pull.
It is allowed in many cases, but a dedicated business account keeps your records clean and your statements easier to explain.
A transfer of money from the business to the owner. It is not an expense of the business.
It depends on your structure. Ask an accountant how to pay yourself.
Many owners keep a savings account for tax and payroll money so it is not spent by accident.
Yes. Sole proprietors can apply the same way as an LLC or corporation.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
