You might have heard of ITIN loans, and you might be wondering what separates them from regular business loans. This article will tell you all that you need to know about ITIN and the difference between it and regular business loans. It will also discuss the requirements for ITIN financing and other information that you need to know about them.
Check this article for more information on how you can obtain these loans.
What does ITIN mean?
ITIN is an abbreviation for Individual Taxpayer Identification Number. It is issued to people who do not have a Social Security Number or SSN. It is a tax processing number for new immigrants who don’t have legal immigration status and resident aliens in the United States of America. It has nine digits, just like an SSN. An ITIN always begins with the number 9, and it takes this format: AAA-AA-AAAA. ITINs are issued by the IRS (Internal Revenue Service). With this number, those without SSNs can file federal taxes and apply for loans.
What are ITIN loans?
They are specially designed for those without a Social Security Number. With these loans, people can apply for small business loans that were previously inaccessible to them.
So, are they different from regular business loans?
Yes, they are. They do not require a Social Security Number, unlike a regular business loan. So, even if you are not a full resident or immigrant of the United States, you can still get a loan. Also, the loan amount may not be as large as that of a regular business loan. But it is still substantial enough to help your business. So, you don’t have to wait until you have an SSN to apply for a loan. With your ITIN, you can apply for loans.
A lot of those using ITIN instead of SSN do not have credit histories. So, lenders that offer ITIN financing may not require credit histories for loans, unlike regular business loans that require a credit history.
How can I get an ITIN loan?
First, you must have an ITIN. Next, you have to register your company as a DBA (Doing Business As) entity. That name is the legal name your business will be known as. Registering your business as a DBA grants you more access to loans and allows you to open an account for your business.
After registering your business as a DBA, you need to open a bank account for your business. You shouldn’t use your regular account to begin a business. A business account separates your personal money from that of the business. It allows you to access ITIN financing and business credit cards.
Also read: Why Every Business In The UK Needs a Website
A business account protects your personal cash and assets from liability in case there is an issue with your business. For example, you might run into problems where insurance demands that you pay a certain sum of money, or you fall victim to a lawsuit that goes wrong for your business. A business account also ensures that your personal credit history remains different from your business credit history. The link posted earlier provides more information on the subject of obtaining an ITIN loan.
Conclusion
If you cannot get a regular business loan because you don’t have a social security number, ITIN financing is your best backup option. They provide you with small business funding even when you don’t have an SSN or credit history. If you are a fresh immigrant to the USA, an ITIN loan is what you need to fund your business and fast-track the growth of your business.