Startup Business Loans - YouTube

Hey it's Ty Crandall with Credit Suite and in  this short video I'm going to teach you how to  

use crowdfunding and business credit to get  money for your business even as a startup by  

the end of this training you're going to know  at least a few different cool ways that a lot  

of people don't know about that you're able to  be able to get funding even if you are a brand  

new business. So look if you're just getting  your business off the ground you need to know  

going to a conventional bank is not the place  to start conventional banks like Bank of America, 

Wells Fargo, Chase offer phenomenal funding  options for well-established businesses but  

they're going to almost in all cases require two  to three years worth of tax returns which you're  

not going to have as a startup business. So what  can you do well luckily there's a lot of credit  

and financing that's available for startups the  key is to know what's available and to know where  

to get it and how to get it and that's exactly what we're going to dive in now. So let's talk about  

crowdfunding there's a couple different kinds of  crowdfunding you should know about and this works  

really good with startups the first is called  equity crowdfunding so when it comes to getting  

money for a business there's two kinds of money  you can get there's equity, which means you're  

giving up equity in your business to get the  funding or there's also debt financing which  

means you're taking on debt like a loan or credit  line where you owe the bank or the financial  

institution back and you're paying them back a  certain amount every month with interest in crude,  

so with equity financing you can actually use  a crowdfunding platform called crowdfunder.com  

to actually get funding for your business and what  this does is it pulls together a bunch of private  

investors, Angel Investors, Venture Capitalists who  may have an interest in investing in your business  

and in exchange for their investment you're  actually giving up some stock, you're selling  

stock in your business or some equity stake in  your business to get that money. Now the great  

news is that's not money that typically has to  be paid back until you exit or sell the business  

like normal debt financing is this is actually  financing where you're bringing in an equity  

partner through a Venture Capitalist or an  Angel Investor they're giving you the money  

you're growing your business using that money  without having to pay it back like you would  

a regular loan or credit line. And you're bringing  on typically a very valuable partner who can even  

help you grow your startup faster now for equity  financing to work for your business you really  

need to have a very unique concept you need to  have a very new or unique idea or you need to  

be in your niche but do something very different  than your competitors, so if we think about Airbnb  

for example if we think about Uber, these were very  new concepts and that's why they got all of these  

equity financers to be able to give them money so  we're looking for something unique and different  

not good for a typical industry. Now beyond  that you might want to also look at regular  

crowdfunding this is through Kickstarter, Indiegogo  this is where these platforms pull together  

backers or people that have money and borrowers or people that want to get that money and if you have

a unique concept or idea and don't want to give  up equity in your business then you can use these  

kind of platforms to raise money from the crowd a  little little small donations from a lot of people  

to raise the capital you're looking to raise, now  sometimes this money has to be paid back sometimes  

people are actually contributing to the campaign  because they're buying your actual product or  

service sometimes you're giving them perks and  you're setting up perks or bonuses for them to  

get by contributing to the campaign. There's a lot  of different kind of crowdfunding that's available  

but the concept is the same you're using a platform like Kickstarter to go in and post  

a project a basically a way of raising money to  get your business off the ground and in doing so  

you're looking for this crowd of backers to be  able to contribute money works really good if  

you have a unique product a unique service that  most people haven't seen that couldn't go viral  

share to their network and something people would actually want to contribute money for. Yet another  

way to get money for your business is through  business credit now this is building credit  

for your EIN that's not linked to your social and  it's going to help your company for years to come  

because by establishing a corporate credit profile  for your business you become more lendable it's  

easier to get loans and credit lines as well as  tap in to getting a lot of money for your business  

at the exact same time, the problem is to get  most loans and most credit lines you need  

either collateral good credit a guarantor  or you need to have some kind of cash flow.  

So if you don't have good credit you're starting  a business and you don't have collateral you don't  

yet have cash flow then you really can struggle  to get the loans and credit lines you need but  

with business credit you're able to get approved  even if you have none of these things it's one of  

the only ways that you can actually get money for  a business without cash flow credit or collateral  

so this is good because anybody can pull your  business credit reports those are publicly  

available to anybody that wants to see them,  your competitors your clients suppliers  

lenders credit issuers they can all see them  so by establishing business credit you're also  

improving your overall reputation it makes  it easier with lenders and credit lines  

or lenders and credit providers to be able to  get loans credit lines credit cards as well  

you don't need to provide a personal guarantee,  so you're not personally liable for the credit  

that you obtain which means they can't come  after your personal assets if you were ever  

default because of unexpected circumstances  like COVID-19 or a mortgage crisis for example.  

And you're also able to get this money with  no personal credit check so even if you have  

damaged personal credit we're going to establish  a basic foundation with your business using vendor

accounts then we're going to use that foundation  to get you approved for all kinds of revolving  

credit without needing a personal credit check, and without needing a personal guarantee. Plus this is  

one of the fastest ways to get money for your  business especially if you don't have cash flow  

credit or collateral now. Now business credit's  a huge asset that's going to help you longer the  

future because it's going to make it easier for  you to get funding because lenders and credit  

issuers look at your established corporate credit  to determine if you should be approved or denied.  

How much money you should be approved for and the rates and terms you'll pay so if you want to get  

the most money for your business at the best terms business credit is crucial to being able to do so.

Now to start building business credit you  need to use what are called vendor accounts  

and these are companies that will give you credit  to buy their products and services and they report  

those payments to the business credit reporting  agencies you have to be careful here, over 97%  

of trade vendors don't report credit to  the business credit reporting agencies so you need 

to get credit with trade vendors who will report  the credit to the reporting agencies and you need  

to get credit with trade vendors who will approve  you even if you have no credit established now.  

Now once you use some sources like Uline or Quill  or strategic network solutions to get credit  

you pay those bills as agreed they report to the  business credit reporting agencies establishing  

a basic foundation a credit profile and a credit score. You can then move on within about 30 days  

to 60 days to start getting retail credit with  most major retailers, Amazon, Costco, Sam's Club, BP

whenever when we look at Staples when we look at  Walmart, Amazon, Nordstrom, Macy's almost all major  

retailers offer this kind of personal credit or  business credit and the great thing is is that  

if you've established a basic foundation using  vendor accounts you can get approved for all this  

kind of revolving credit, even fleet credit to get  fuel to get repairs and maintenance of vehicles  

at places like Chevron and BP you're able to get  all of this without a personal guarantee without  

a personal credit check using your established  foundation using vendor accounts to be able to  

get you approved and qualified. So this is a  great way to get money for your business even  

as a startup when you can't get money anywhere  else and get very high limit revolving accounts  

very quickly for your business. To learn more about  building your business credit visit us online at  

creditsuite.com and grab our free guide that maps  out the exact steps to build business credit for  

your EIN that's not linked to your social and  give us a call today for your free business  

credit reports, we'll get you free credit reports  with Dun & Bradstreet, Equifax, and Experian  

instead of paying $249 to them and will  also, give you tips and tactics to help you build  

your business credit it all happens by giving  us a call at 877-600-2487 that's 877-600-2487.