Derek Whitehead hosted a live session focused on teaching the foundational steps for securing significant business funding and establishing strong business credit.
The discussion emphasized the importance of business summaries, proper corporation setup, and the sequence of steps required to access both credit cards and larger installment loans.
Key topics included Experian business credit setup, documentation checks, issuing corporate shares, and loan servicing strategies. Upcoming free seminars, affiliate programs, and a real estate education program were also promoted.
Attendees were encouraged to teach these concepts to their children and participate in future sessions held every Tuesday and Thursday at 5:00 PM Pacific Time.
Action Items
As soon as possible – All Attendees: Download a free business summary template, fully complete it, and use it as a roadmap for business planning.
As soon as possible – All Attendees: Sign up for Experian Business ($189/year), input and verify all business information, and ensure Experian data matches state records.
As soon as possible – All Attendees: Check the corporation's good standing letter; if older than 6 months, contact the Secretary of State for an updated version.
As soon as possible – All Attendees: Review corporate articles to identify issued shares; prepare and sign a resolution letter to properly distribute shares among owners.
As soon as possible – Interested Attendees: Consider joining the free real estate program or affiliate program by reaching out via economicmasonry.com.
As soon as possible – All Attendees: Report any online impersonators/scammers pretending to be Derek Whitehead.
Step-by-Step Guide to Business Funding and Credit Building
1. Determining the Purpose of Funding
Many people focus on acquiring funding but lack clarity on how they’ll use it; a business summary is essential to define goals and plans.
Attendees encouraged to be honest about experience with business planning (using audience participation tools).
2. Understanding Types of Funding and Corporate Structures
Credit cards ($100K–$500K) can be obtained using stated income and no-doc requirements, typically through a properly set up corporation (not LLC).
For loans over $500K or up to several million, banks require full documentation and a mature corporate structure (C Corp preferred, not a converted LLC).
Special purpose entities ("shelf corporations") can be acquired if needed for maturity and credibility.
3. Setting Up Business Credit with the Right Agencies
Sign up directly with Experian Business (not just Dun & Bradstreet) to establish a fast, accurate business credit profile; this enables access to significant funding.
Ensure all business details (address, officers, etc.) in Experian match records at the Secretary of State and that your corporation is listed as "active."
Paying for Experian ($189/year) accelerates the reporting process, ensuring funding agencies get up-to-date, accurate information.
4. Checks and Balances: Corporate Documentation
Obtain and regularly update your good standing letter from the Secretary of State (must be less than 6 months old to secure funding).
Review and update the articles of incorporation, specifically the number of shares; issue shares properly via a board resolution letter—essential for personal and family asset transfer.
Avoid one-person corporations for credibility; have at least three officers listed.
5. Managing Credit Usage and Building Paydex Score
After acquiring initial credit cards (no more than three, totaling up to $175K), stop and wait for accounts to appear in Experian Business before applying for further credit.
Always pay business debts before due dates to maintain a Paydex score of 91 or higher, greatly improving lending prospects.
Remove excess inquiries from personal credit to keep credit-building opportunities open.
6. Completing a Business Summary and Planning for Maximum Capital
Download and thoroughly complete a free business summary template (from Google), covering every section—location, employee count, salary, funding needs, etc.
Choose a business location with a strong (high-value) zip code for best funding outcomes—avoid high-risk areas.
7. Three-Bucket Wealth Plan and Additional Programs
Adopt the three-bucket plan: business establishment, real estate acquisition, and long-term investment.
Free real estate education and affiliate programs are available via economicmasonry.com—for business scale-up and diversification.
8. Scam Awareness and Community Protection
Be vigilant about online impersonators and scams—report suspicious profiles using Derek Whitehead’s name.
Decisions
Direct business credit setup via Experian Business prioritized over Dun & Bradstreet — Rationale: Faster reporting, access to more substantial funding, and improved accuracy for banks and financial institutions.
Mandatory issuance and proper distribution of corporate shares among actual owners — Rationale: Ensures personal and family ownership of assets, enabling generational wealth transfer.
Emphasis on C Corporation for major funding efforts — Rationale: Lenders prefer mature, multi-party corporate entities for large installment loans.
Require business summary completion before seeking large funding — Rationale: Lenders assess clarity and planning before approving significant capital.
Open Questions / Follow-Ups
Are there additional resources or templates for the resolution letter and business summary that can be provided directly to attendees?
Clarification requested by an attendee: Is 200 shares too few for a new company? (Addressed in meeting: No, as long as all are issued to owner(s).)
How to best structure officer/ownership roles for maximum funding potential?
Further details on the affiliate and real estate programs—are sign-up processes straightforward or is additional screening involved?