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Are you in a need of business credit to start or develop your business? Then you should certainly apply for a business credit. Business credit can be taken from a lender, but before you apply for business credit, you should know your rights. We will tell you all you need to know before applying for business credit.
The Equal Credit Opportunity Act (ECOA) provides you with certain rights that allow you to fight against any sort of discrimination practiced by the lender. Under the ECOA, the lender cannot deny you business credit because of your religion, sex, age, national origin, race or marital status. So, if you feel that you have been denied a loan because of any such reason, then you can use the ECOA and we will tell you how to use it.
If the lender rejects your application for business credit, then you have the right to ask him the reason of denial. You will have to send a written letter to the lender seeking the reasons for denial within 30 days after your application has been rejected. He has to provide you a precise reason for the rejection within 30 days after he receives your application. Once you receive his letter, you will come to know the reason behind the denial of credit. However, if you are not convinced with the reason(s) of denial, you may talk to the lender and sort out the matter at this stage.
The lender is supposed to keep your application of business credit for a period of one year if you a small business. You have a small business if you have annual gross revenues of less than $1 million. If you have a larger business and you have been denied business credit, then the lender is supposed to keep your application for a period of 60 days for records. On your request, however, the lender can keep your application for a longer period of time. This usually happens in cases when you have to take a legal action against the lender. The Federal Trade Commission can help you if you have a dispute with a governmental lender, public utility company, small loan and finance company, travel and expense credit card company, or any other non-bank lender.
Under the ECOA, aforementioned actions are legal and made to erase discriminations and injustice. So, if you have to apply for business credit, you now know how to make your moves.
