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Choosing a business name is an exciting step, but it’s important to consider potential roadblocks. Certain words in your business name can trigger red flags for lenders, registrars, and even customers. Let’s explore some risky elements in business names and why you should avoid them.
Red Flags for Lenders and Registrars:
- High-Risk Industries: Using terms associated with inherently risky industries like “payday loans,” “bail bonds,” or “adult entertainment” can raise eyebrows with lenders who may be hesitant to provide funding. These industries are often subject to stricter regulations and higher default rates.
- Financial Jargon: Words like “credit,” “investment,” or “guarantee” might imply offering financial services without proper licensing. This can lead to registration delays or even legal issues.
- Ambiguous Terms: Vague terms like “solutions” or “services” without further context make it difficult to understand your business and its legitimacy.
Words to Avoid for Customer Perception:
- Negative Connotations: Words like “risky,” “cheap,” or “doubtful” can subconsciously deter customers.
- Overused or Generic Terms: Generic names like “Eagle Enterprises” or “Global Solutions” are forgettable and don’t convey…
