You’re probably missing out on some excellent ways to get funding for your business. Let’s change that!
For starters, a limited liability company or LLC is very common among business owners because of the protection they offer and the fewer hoops to jump through. There are also some great credit card bonuses for having ownership in an LLC.
If you own a minimum of 25% of an LLC via an Operating Agreement, you are eligible to apply for a business credit card through your business.
25% ownership of an LLC, allows you to apply for a credit card through that LLC and personally guarantee the money through your social security number for tax purposes, but also take advantage of the LLC as well as the revenue of the LLC.
So there are two ways to use this trick.
If the LLC is owned by someone you know, they can “give you” 25% ownership of their LLC and then apply for funding.
You can acquire an old LLC
If you know an LLC owner who is closing their business you can take over their dwindling LLC.
You can buy an old LLC.
The reason why you want to work with an older LLC is that you get grandfathered into their benefits. After all, they already have an established relationship with the bank. If you start with a brand new LLC, you will need to start with a newer relationship with the bank.
How Can I Get the Most Funding For My LLC?
The longer your relationship with your bank the better your benefits will be.
If you already have a personal checking account or a business checking account, it’s a lot easier to apply for a business credit card. Personally, for any bank that I’m applying for a business credit card, I make sure I have a checking account with them first.
These relationships take time to build and so it’s a great way to speed up time is to become part of an LLC that has already been in business for some time. It doesn't even need to be that long either, anything more than 12 months is a good amount to work with.
If you’re taking the advice given earlier in this blog about buying an LLC, some business types to consider purchasing are:
Consulting
Ecommerce
Marketing Agency
These types of businesses are “low risk” because they have high explosive growth and low overhead. Because of this, they’re getting the most funding from the banks.
If your business or LLC is something that could be considered a “high risk”, like say a real estate wholesaling company, there is a way you can change it. You can learn more about, how in the Credit Stacking course.
Some other ways to maximize your funding would be to make sure your business name is vague. One of my companies is called “JM Global Ventures” which could be anything!
The reason behind this is to make sure you don’t lose any potential funding because your business name sounds “high risk.”
Things to avoid in the title of your business are:
Names involving finance.
Names involving credit.
Names involving real estate.
If your business already has a “high risk” name, you can change it through your state's Secretary of State.
When it comes to the address of your business, you can not use a P.O. Box. It’s better to use a business address or a residential address instead.
If you travel around a lot you can also use a virtual commercial address. Using a USPS, FedEx, or P.O. Box will almost always result in a credit card application getting denied.
Not about what you know, but who you know!
If there is anything you gather from this article it’s this: there is power in having good relationships with everyone.
Having a good relationship with a family member or someone in your network can open the door for you to join their LLC through an Operating Agreement.
And as I always say, it’s important to have a good relationship with your bank so they can trust you to have a high spending limit.
The power is yours so long as you are true to yourself and those in your circle. If you’re looking for an opportunity to join a network of Credit Stackers, check out the course and see how you can grow your circle.