💼

Funding Strategies for New LLCs

Dec 19, 2024

Lecture Notes: Securing Business Funding for New LLCs without Proof of Income

Introduction

  • Importance of securing funding before it's needed.
  • Strategy to get up to $250,000 by obtaining $50,000 from each of five banks.
  • Concept of 'stated income' in business lending.

Key Concepts

  • Stated Income: Lenders allow businesses to state their projected income without needing to provide actual proof (e.g., tax returns, bank statements).
  • Borrowing Strategy: Borrow money before it's needed to prepare for large orders or hiring needs.
  • Building Business Credit: Establishing business credit is crucial for securing loans and lines of credit.

Banks Offering Business Loans without Income Proof

  1. Chase Bank

    • Offers up to $50,000 in a business line of credit or a business credit card.
    • Requires a decent personal credit score (around 680, but approvals possible with 660+).
    • Must have an established LLC and an EIN.

  2. Bank of America

    • Provides up to $50,000 with stated income for new LLCs.
    • Important to open a business checking account to establish a relationship.

  3. PNC Bank

    • Offers up to $100,000 in a line of credit with stated income.
    • LLC should be at least two years old.
    • Mid-sized bank providing personalized service.

  4. Truist Bank

    • Provides up to $50,000 with stated income for new businesses.
    • Offers multiple credit options, including personal and business credit cards.

  5. U.S. Bank

    • Lends up to $50,000 with no proof of income for new LLCs.
    • Often provides incentives for opening a business checking account.

Bonus Bank

  • Regions Bank
    • Mid-sized bank not available in all states.
    • Offers business credit cards and lines of credit with stated income.

Considerations

  • Different banks use different credit bureaus (Equifax, TransUnion, Experian).
  • Important to understand which bureau each bank uses to manage credit inquiries.
  • Consulting experts like Justin Merch Consultant can provide guidance on credit management and maximize funding potential.

Conclusion

  • Be proactive in applying for business funding before it's urgently needed.
  • Utilize resources like experts or consultants to navigate credit systems.
  • Subscribe to channels that provide valuable financial strategies and insights.

Full transcript