Building Business Credit and Funding Insights

Oct 18, 2024

Lecture Notes: Day Four of the Grant Mastery Challenge

Introduction

  • Welcome: Introduction to Day Four of the Grant Mastery Challenge with Coach K.
  • Topics Covered in Previous Days:
    • Setting funding goals.
    • Business setup.
    • Introduction to grant writing.
  • Today's Focus:
    • Overview of EIN-only funding.
    • Brief mention of upcoming guest speaker.

Business Credit and EIN-Only Funding

  • Key Concepts:
    • Separate personal and business finances.
    • Access to funding using business credit and EIN.
  • Benefits of Business Credit:
    • Emergency capital.
    • Business growth and development.
    • Competitive advantage in the market.

Building Business Credit

  • Steps to Establish Credit Based on EIN:
    • Build relationships with companies.
    • Incorporate at least five accounts to strengthen credit profile.
    • Aim for an 80 paydex score.

Important Terms

  • Duns and Bradstreet:
    • Primary business credit reporting agency.
    • Goal is an 80 paydex score.
  • Net Terms:
    • Payment terms indicated by net + number (e.g., net 30 means 30 days to pay).
  • PG (Personal Guarantor):
    • Option to use personal credit to back business funding.
  • Trade Lines:
    • Accounts added to strengthen credit profile.

Action Plan for Building Credit

  • Accounts to Establish:
    • NAV: Credit monitoring service, consider NAV Prime.
    • CreditStrom: Monthly fee for positive trade line.
    • eCredible: Reports existing business expenses as trade lines.
    • Debi: Reports virtual address payments.
    • Bank of America Secured Card: Builds relationship with the bank.

Advanced Strategies

  • Tier Two Vendors:
    • Access funding with a solid credit profile.
    • Examples: Sam's Club, Best Buy, Home Depot, and more.
  • Types of Business Funding:
    • Credit cards, loans, lines of credit, revenue-based funding, SBA funding.
    • Funders look for character, capacity, capital, collateral, and conditions.

Mindset and Motivation with Nehemiah Davis

  • Introduction to Nehemiah Davis:
    • Story of personal transformation from adversity to success.
  • Key Lessons:
    • Importance of mindset over skillset.
    • Commitment and taking action.
    • Focusing on 'who' not 'how' to achieve success.

Conclusion

  • Coach K's Call to Action:
    • Encouragement to apply learning and seek grant and business funding opportunities.
    • Invitation to join more intimate program for further learning and networking.
  • Special Offer:
    • Nehemiah Davis offers additional resources for first five participants who join the program.

Note: These notes summarize the key points and actionable strategies from the lecture, focusing on building business credit, finding funding, and leveraging opportunities for business growth. Keep these notes as a guide for implementing the discussed strategies.