Business credit and your “office”… Does it really matter?

I read a very interesting article today and I wanted to share it with you guys.

The article has to do with Inc. Magazine and a little experiment they’re having over the next month.

In an effort to gain a definitive viewpoint on the commonly debated subject of centralized office space versus the new-age virtual office space solution, they have decided to NOT use their office space (which is quite beautiful, by the way) and work “virtually” for the next month.

Check the article out here.

The question at hand has to do with the synergistic effect of collaborating with other co-workers, being in a “work” environment and, ultimately, being more productive as a team.  What Inc. wants to find out is, by working in a virtual element, will their team increase, decrease or maintain the status quo?

That’s the almighty question.

Because if 30 days from now Inc. Magazine does, in fact, have their most productive, stress-free and profitable month in recent history, my guess is that there may be an office space coming up for lease in the near future.

Along with an immediate sizable increase to their bottom line, to boot.

Personally, I think this is a great subject to gain more perspective on.

But, as small business owners looking to obtain business credit, the decision may not be so easy. Because an entirely different set of criteria comes in to play in terms of choosing to go virtual and go without a commercial office space.

Here’s the thing: when looking to obtain business credit, your business image is crucial!

The image you portray to a lender and their automated system can be the difference between approval and denial.

In fact, during the automated underwriting process, many lenders will verify if your stated business address is zoned commercial or residential when reviewing your application for funding. And, while there is absolutely nothing wrong with operating your business out of your home, many lenders prefer to only work with businesses that have a physical office space that is outside of their home.

And, the name of the game is to make the lenders happy.  (Additionally, there are many ways to achieve this without the expense of actually leasing an office space).

But, generally speaking, is a virtual office space the way of the future? Who knows?

In my experience, I feel that a certain element of creativity and team synergy can only be had by working together face-to-face in a centralized environment. But, with technology moving very quickly who’s to say that the virtual route would be too far from actual “face-to-face”!

So, is the virtual workspace idea one of those ideas that looks great on paper, but in actuality… not so much? I don’t know. But, I do think time will tell.

In a business climate of cutting costs with a machete, I think we will see many more companies testing the virtual waters out over the coming months and years.

Let me know what you think. I’d love to hear your thoughts…

Get The Finance Formula |  Business Credit Insider Blog |  The Business Credit Minute