Brian's video above is the full beginner's guide to starting a business — from concept to legal entity to first steps. This written companion takes the same starting-a-business sequence and translates it through one specific lens: what you need in place before a lender will look at your application. The setup steps Brian describes aren't just business hygiene — they're the documentation stack that determines whether you qualify for funding and at what tier.
Why the setup steps are funding steps
Most new business owners assume funding eligibility starts when the business is profitable or when revenue crosses some threshold. It doesn't. Funding eligibility starts the day you form the entity and open the bank account. Every deposit after that date is building the bank-statement history that lenders will underwrite against. Every missed day is a day you're not accumulating the 90-day minimum most non-bank lenders require.
The math is simple: if you want to apply for a working capital line in 12 months, you need the bank account open by month one. If you want to apply in 6 months, you needed it open before you started. Get the structure right first.
The four things lenders check before anything else
Underwriters for alternative-tier products (MCA, revenue-based financing, working capital lines) run a quick pre-qualification check before reading anything else in the application. The four gate items are:
1. Legal entity + EIN. Your business must exist as a legal entity — LLC, corporation, or registered partnership. Sole proprietors can access some products using a Social Security number, but entity-less underwriting is limited to the lowest tiers. An EIN (Employer Identification Number) is free from the IRS online application and issued same-day. There is no reason to pay a third-party service for this.
2. Dedicated business bank account in the entity's exact legal name. This is non-negotiable. If your business deposits run through a personal account, the lender cannot cleanly separate business revenue from personal cash flow. More importantly, commingled accounts are a underwriting red flag because it suggests the owner hasn't separated personal and business finances — which predicts other documentation problems. The account must be in the same name your entity is registered in with your state.
3. Minimum bank history. Three months of business bank statements is the floor for almost every non-bank product. Some revenue-based financing providers will work with 2 months. SBA requires 2 years of business tax returns for most 7(a) products (Microloan and Community Advantage are exceptions). The day you open the account is day one of the clock. You cannot manufacture history retroactively.
4. Consistent monthly deposits. Lenders underwrite to average monthly revenue — typically looking at the last 3–6 months of bank statements. Consistency matters as much as volume. A business with $12K in deposits every month for 3 months underwrites more cleanly than one with $40K in month 1, $3K in month 2, and $14K in month 3 — even though the latter has higher total deposits. Volatility is a risk signal.
The state formation step
Every state has its own process for forming an LLC or corporation. The common thread: Articles of Organization (LLC) or Articles of Incorporation (corporation) filed with the Secretary of State, a filing fee (typically $50–$500 depending on state), and a registered agent (person or service that accepts legal documents on the business's behalf). Many states allow online filing; processing is typically 1–10 business days, sometimes same-day for an additional expedite fee.
The SBA's state resources directory links to each state's business registration portal. After formation, you'll receive a state filing confirmation — this is one of the documents you'll need when opening the business bank account.
Why your personal FICO still matters at launch
New businesses don't have business credit history. For the first 12–24 months, lenders underwrite primarily against the owner's personal FICO. The common floors in 2026: 600–650 for MCA / working capital, 650–680 for term loans, 680–720 for bank lines of credit and SBA. Personal credit card utilization is the fastest lever — getting utilization below 30% before applying often lifts FICO enough to change the eligible product set. See our credit score and business funding guide for the full breakdown.
What "underfunded at launch" actually costs
A pattern we see repeatedly: an owner launches, puts everything through a personal account for 6 months, then decides to "start taking this seriously" and forms the entity. By the time they apply for funding 6 months later, their bank history starts at month 0 again — the personal account history doesn't transfer and doesn't count.
That 6-month delay is 6 months of funding eligibility that didn't accumulate. At a $15K monthly deposit baseline, that's roughly $90K in demonstrable revenue history that doesn't exist in the business account. The cost of the setup delay isn't paperwork — it's funding access.
The minimum viable funding-ready setup
For a new business targeting working capital eligibility in 90–120 days:
- File the LLC (or corporation) in your state. Get the state confirmation document.
- Apply for EIN at IRS.gov. Receive same day.
- Open a dedicated business bank account in the entity's legal name. Use it for every business transaction from day one.
- Open a DUNS number at Dun & Bradstreet (free, ~30 days to process). Begin building business credit history.
- Open one NET-30 vendor account and one starter business credit card. Pay both on time every month.
- Make sure every dollar of business revenue flows through the business bank account. No exceptions.
After 90 days of consistent deposits, run the funding calculator to see which products you're in range for. At 6 months with 600+ FICO and $10K+/month in deposits, the working capital and revenue-based financing tier is accessible. At 12+ months with stronger credit and bank history, bank lines and term loans come into range. The SBA timeline requires 24+ months of operating history for most products.
Where ClearValue Lending fits
ClearValue Lending is a funding platform — we route applications to the lender partner most likely to fund based on the business's profile. We don't originate, underwrite, or fund loans. When you're ready to apply, start the application here — five minutes, no hard credit pull at pre-qualification. Not sure where you stand yet? The funding calculator gives you a 30-second product-fit read based on your current profile.
