Nobody wants to talk about it, but we need to talk about it.
What is going to happen if the US defaults on its debt? Especially if you're a business owner.
First and foremost let me say I'm not a tax advisor. You should consult with a professional for your specific needs.
However, I have been able to help thousands of entrepreneurs get approved for more than $10 million in business credit at zero percent interest.
That money has been able to provide a means of getting funded without depending on a traditional bank loan, investor, or using their cash to fund their business.
With that out of the way, let's readdress the elephant in the room, the debt ceiling.
What are the consequences of the US defaulting on its debt?
This would be the first time in our history that we would default on our debt.
I don't want to scare you with fearmongering, but there would be consequences because the government would be admitting it would no longer be able to pay for its debts.
The biggest sources of damage would be government programs such as Medicare or Social Security.
It would also hurt borrowing costs for businesses and entrepreneurs like you. If you were to take a loan from the bank, the interest rates would be out of control.
What can I do to prepare for the debt ceiling being raised?
The best thing you can do now is access as much capital as possible.
When you get access to business credit, you're able to access money at the expense of your business or LLC. That does not mean you have free money.
When you're approved for and use a business credit card, you still need to pay off the debt. But the real trick is to get approved for a high-limit business credit card at 0% interest.
Doing this opens the door to opportunities for you that you could not access if you were depending on the bank.
For example, if you're approved for $50,000 in business credit, you can liquidate that credit and use it to invest in a real estate property. You can then turn around and use the money you get from renting the property out.
Because your card is 0% interest, you won't have to worry about drowning in debt as time passes, but you need to be sure to pay off the $50,000 you liquidated.
To compliment that, if you've spent money on the right business credit cards, you can earn points for travel. So rather than spending your hard-earned money, you can practically travel for free.
Once you're approved for a business credit card, you're set with that money. Rarely do the banks lower the spending limits you have on a card. And if you keep reaching your limits, you can ask for a credit increase.
This will help you get access to more funding for your business or LLC. You don't even need to create your own business to be approved for business credit. You can learn more about it here.
Is there a silver lining?
Whatever happens with the US defaulting on its debt, there's always hope for financial freedom and stability.
The points in this blog are the tip of the iceberg when it comes to tapping into business credit cards.
As I mentioned before, I've been able to help thousands of entrepreneurs revolutionize their businesses by accessing business credit.
The best way to prepare for the unknown is by securing your financial future.
You can learn how to do this by joining my mentorship program. To learn more, book a free coaching call with someone from my team to learn how business credit can help you today.