When building business credit, many people don’t know how important it is to have a business address. It’s about more than a location or getting mail. Not having a business mailing address can affect your chances of obtaining business credit. Underwriters actually take into account the address of a business into consideration during the approval process.
A business address must be a physical address. Yes, you home address is a physical address, but there are some drawbacks. If your business address is the same as your personal address, it could lower your chances of getting approved. Using a personal address could show a lack of stability. But if you are in a bind, a personal address will do.
Can I Use A PO Box?
First, a post office box is technically not a physical location. It is a box within a location. Plus, with a PO Box, you cannot receive packages. Your address must be able to receive mail as well as packages. The USPS does have an option for street addressing. This service allows you to receive packages from Amazon, DHL, FedEx and UPS. However, when the address is searched, it is still classified as a post office box.
Can I Use An Address From The UPS Store?
While you can receive packages and mail, it’s similar to the USPS street addressing. The address is not an actual physical address, it’s a space. Just like the post office box, a UPS address is a box within an address.
To qualify as a business address, the address must be an actual physical real address. Some lenders will disqualify you as soon as they see you are using a post office box or UPS store address. When a lender or credit provider searches the address, the address must seem like you actually have an office.
What Address Should Be Used?
If you have an actual office in an office building or retail space. That is perfect. It’s shows stability. However, these types of locations can be quite expensive. The most common solution is a virtual business address. With a virtual address, when someone searches for it, the results show an office building. You can receive packages and important documents at your virtual mailbox and they can deliver to your home address. Other benefits can include the use office space, use of a conference room or reception and message services. This means you can have them take calls and messages for your business and forward it to you.
The top 2 virtual address providers are DaVinci and Regus Virtual Office. Both have additional services you can choose from. Be sure to keep everything separate. Use your virtual business address for all business transactions. Do not use your home address for anything business related. This can cause your business address to show on your personal credit report.
