Premier Access Consulting

FINANCING A START-UP BY THINKING OUTSIDE THE BOX

Have you tried every source possible to get funding for your start-up? Has the SBA, your local bank, and your family turned you down? Are you so frustrated that you want to throw your hands in the air and give up on your dream? Don't give up just yet...there may be a solution. Premier Access Consulting has a solution. That solution is revolving lines of business credit otherwise known as business credit cards...

While most people cringe when they think of using Credit Cards as a vehicle to start a business, Premier Access Consulting has used them to help fund 100's of companies! Most banks will not approve a start-up, who has no financials or P&L statements, for a traditional $25,000 installment loan. But, they will give a start-up a Business Credit Card for up to $25,000.

Now we know what you're thinking...using a credit card to fund a business...are you off your rocker? No, we're very much sane, and as a matter of fact, many small businesses and start-ups are doing this exact thing as we speak. But you ask, what about the extremely high interest rates? A lot of banks offer promo rates as low as 0% for up to 12 months. But, I need cash to start my business, what now? You can utilize a technique called "Credit Card Arbitrage" to obtain cash off of each line while avoiding the outrageous Cash Advance Fees and take advantage of the lowest possible intro rates.

"This seems too good to be true"... It's actually very possible, but there are a few caveats. First, you have to have an actual entity on file with an EIN number from the IRS. Premier Access Consulting can help you set up your entity and obtain your EIN if need be. Second, you'll need to have above average credit; the underwriting guidelines these days are very tight, so anyone under 700 will most likely have a tough time getting approved. Third, you'll need to make sure you haven't been looking for credit with every institution possible. Meaning, you need to make sure your credit report isn't saturated with inquiries. Excessive inquiries make you look desperate in the Bank's eyes and Bank's do not lend to people who appear to need the money. Interesting catch-22 huh?

Fourth you will want to make sure your credit is up to snuff and there are no issues such as, derogatory accounts, open collections, judgments or liens. Finally, you need to make sure you're not overextended on your current, open revolving accounts. Most banks underwriting systems are automated and will decline you if your balance to limit ratio is over 50%. So if you have any revolving lines over 50% of their limit, they will need to be paid down to just below 50%.

The best way to ensure your credit profile is good enough to qualify for revolving business credit lines is to pull a report from a consumer based credit agency, such as MyFico.Com or CreditCheckTotal.Com. The reason we recommend using a consumer based credit agency, is it doesn't put a "Hard Inquiry" on your credit profile. Consumer based credit agencies like Credit Check Total use a "Soft Inquiry" which doesn't affect your credit scores. As an added bonus either of these companies will give you an approximation of your scores for all three bureaus, as well as the ability to dispute any inaccuracies online.

Once you've thoroughly reviewed your credit profile and you have all of your other ducks in a row, so to speak, you'll almost be ready to start applying. Before you start applying though, you may want to do research to find out what offers are out there, and which banks lend to which states. Most banks have a lending pattern and will only lend to specific locations within their "lending footprint". There are a lot of great sources for researching banks on the internet; Fat Wallet, Credit Pulls, Google and many more.

There are a lot of moving parts to obtaining revolving business credit lines to start a business. It is definitely not for the faint of heart, and will take perseverance and attention to detail to ensure overall success. Strategy will need to be applied to maximize the approvals. If you're the type of person who lives to learn and isn't afraid of hours and hours of research, and who is committed to starting their business no matter what, this process may be for you. For others who may not have the time, but have the money, there are professionals like Premier Access Consulting out there whose sole business is implementing this strategy to successfully fund their clients. Good Luck!

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