topic Re: Denials with Using a Virtual Office? in Business Credit

Denials with Using a Virtual Office?

EmJayGee13 — Sun, 15 Jan 2023 18:52:39 GMT

I went through earlier posts and didn’t come across the answer to this..

If Google results of my virtual office address shows other multiple businesses at the same address or links advertising the address as a VO...has this caused anyone issues with funding/licensing or am I overthinking?

I assume if an underwriter does the same address search, they’ll easily see its a VO location and deny me 🤷🏾‍♂️ how do you overcome this?

Re: Denials with Using a Virtual Office?

pizzadude — Mon, 16 Jan 2023 04:23:13 GMT

@EmJayGee13 wrote:
I went through earlier posts and didn’t come across the answer to this..

If Google results of my virtual office address shows other multiple businesses at the same address or links advertising the address as a VO...has this caused anyone issues with funding/licensing or am I overthinking?

I assume if an underwriter does the same address search, they’ll easily see its a VO location and deny me 🤷🏾‍♂️ how do you overcome this?

Have you been denied by creditors, with this as a reason ? Assuming you're talking about credit cards here, in most cases these require a PG and are based to some extent on your personal credit ; also in many cases underwriting is automated and unless your application is borderline it may never require any type of manual review.

Re: Denials with Using a Virtual Office?

EmJayGee13 — Mon, 16 Jan 2023 05:11:36 GMT

No I haven't been denied and yes I'm primarily asking about credit cards. I was just looking for guidance in the right direction before getting too deep in the process.

Thnaks for the information though. That makes sense.

Re: Denials with Using a Virtual Office?

LP007 — Mon, 16 Jan 2023 21:52:41 GMT

You may find it troublesome if an institution (Wells Fargo?) has been flagged for non-compliance regarding vetting businesses as accurate. Especially after the influx of fly-by-night LLCs due to the 'demic, brick & mortar or home offices are the standard litmus test if they're looking.

The big cats Regus, Divinci, Opus, et.al. may be redflags. Maybe you find a small local VO in Craigslist. Also, since the 'demic, home offices don't have the stigma they use to. JMHO.

Re: Denials with Using a Virtual Office?

RealEstateGuy89 — Sat, 18 Feb 2023 22:32:38 GMT

@EmJayGee13 wrote:
I went through earlier posts and didn’t come across the answer to this..

If Google results of my virtual office address shows other multiple businesses at the same address or links advertising the address as a VO...has this caused anyone issues with funding/licensing or am I overthinking?

I assume if an underwriter does the same address search, they’ll easily see its a VO location and deny me 🤷🏾‍♂️ how do you overcome this?

Most lenders will deny anything that they find out that is going to a virtual office. If you want a separate address from your home address, I know people have been putting a suite number behind their home street address as in: STE 102

It also helps if your business address is the same starting with the corporate documents at the state level on down. Keeping your business address/profile information congruent everywhere will help you immensely when dealing with lenders, vendors and suppliers.

Re: Denials with Using a Virtual Office?

URHomeInvestments — Mon, 20 Feb 2023 16:19:30 GMT

I am using a virtual office for a new business. I am forming a new entity and getting it and an older one set up with a Dun & Bradstreet. I buy and hold real estate, so the SIC code I am using may be a problem as others have said real estate SIC codes equal risk. Well, it is what it is. I am getting ready to find a new business bank established and want to get credit for both the new entity and the older entity. I"ll pay attention to the address and post back if it is problematic.

Re: Denials with Using a Virtual Office?

Liberty33 — Sat, 25 Feb 2023 01:47:12 GMT

I have been using my home address of a manufactured home in a 55 and up community in Florida from the 1970's. I have never had an issue getting credit for any business at that address and I have had multiple businesses I have built credit for at this same address at the same time. No issues. None.

It saves a lot of money and aggravation of just using your home address. I think that lots of businesses are run from home addresses now so it has become a non issue. Saves money and time to use your home address. Works every time for me.

Re: Denials with Using a Virtual Office?

URHomeInvestments — Mon, 06 Mar 2023 16:13:02 GMT

Thanks for sharing your experience. Very helpful.

Re: Denials with Using a Virtual Office?

Drifter73 — Mon, 06 Mar 2023 21:01:38 GMT

I suppose a UPS stores physical address would be the same as a virtual physical address. In the sense you never have to visit it, they will forward all mail to wherever you want it, and it can be leveraged for local Geo fenced lenders.

One of my LLCs has been operating from one of those for almost a decade and never had an issue with lenders using that address.

Re: Denials with Using a Virtual Office?

LP007 — Wed, 15 Mar 2023 17:20:10 GMT

@Drifter73 wrote:
I suppose a UPS stores physical address would be the same as a virtual physical address. In the sense you never have to visit it, they will forward all mail to wherever you want it, and it can be leveraged for local Geo fenced lenders.

One of my LLCs has been operating from one of those for almost a decade and never had an issue with lenders using that address.

Does the box # have dashes? 4110-102, for example?

Re: Denials with Using a Virtual Office?

Drifter73 — Wed, 15 Mar 2023 18:25:08 GMT

@LP007 wrote:
@Drifter73 wrote:
I suppose a UPS stores physical address would be the same as a virtual physical address. In the sense you never have to visit it, they will forward all mail to wherever you want it, and it can be leveraged for local Geo fenced lenders.

One of my LLCs has been operating from one of those for almost a decade and never had an issue with lenders using that address.
Does the box # have dashes? 4110-102, for example?

Correct.. however, I receive mail just fine with a couple different address variants:

Actual variant format: Suite: H193-306

Alternate variant format: Unit: H193

Alternate variant format: #H193

Note: as long as the numbers before the hyphen are correct, the UPS store will reference the company name and box owners signature name to make sure it goes in the correct box based on the receipt name/company on the envelope/package.

Note 2: the numbers before the hyphen is the UPS address. The numbers after the hyphen is the residential/commercial physical address mailbox number.

I've used variants of all three formats above just fine and always get my mail.

Re: Denials with Using a Virtual Office?

LP007 — Tue, 21 Mar 2023 04:59:44 GMT

@Drifter73 wrote:
@LP007 wrote:
@Drifter73 wrote:
I suppose a UPS stores physical address would be the same as a virtual physical address. In the sense you never have to visit it, they will forward all mail to wherever you want it, and it can be leveraged for local Geo fenced lenders.

One of my LLCs has been operating from one of those for almost a decade and never had an issue with lenders using that address.
Does the box # have dashes? 4110-102, for example?
Correct.. however, I receive mail just fine with a couple different address variants:

Actual variant format: Suite: H193-306
Alternate variant format: Unit: H193
Alternate variant format: #H193

Note: as long as the numbers before the hyphen are correct, the UPS store will reference the company name and box owners signature name to make sure it goes in the correct box based on the receipt name/company on the envelope/package.

Note 2: the numbers before the hyphen is the UPS address. The numbers after the hyphen is the residential/commercial physical address mailbox number.

I've used variants of all three formats above just fine and always get my mail.

Dannnnnnng...gannnngsta! 😅

Re: Denials with Using a Virtual Office?

boroqcat — Fri, 24 Mar 2023 20:21:56 GMT

Age of business plays a large part in chances for success in obtaining approvals. Age is second only to monthly revenues and size of loan request.

Not to go against the more senior posters/established business owners, but if your business is young (say < 3 years) you most certainly are better off with using an established VA v your personal address. PO boxes are complete no fly zones. Shop around for which VA service you use, but the key is to pick an address that is an actual office building. Google search or not, you taking the step to have a physical headquarters--even if it is just to hold client meetings --will give your business credibility in addition to the other key business data points (800 number, website, whitepages listing, etc) when being reveiwed by a human underwriter.

Hope that helps.