5 BANKS Approval NEW LLC NO INCOME!

Summary

Andrew Cartwright explains the process of establishing business credit, highlighting its advantages over personal credit. He shares methods for setting up business credit without proof of income and lists banks offering credit lines up to $50,000 or more, like Chase, Bank of America, and PNC. Cartwright emphasizes the importance of separating personal and business credit to protect personal finances and leverage business opportunities. He also encourages viewers to take action and explore opportunities to acquire business credit lines for growing their ventures.

Takeaways

• 💼 Business credit is separate from personal credit, and it’s easier to build and maintain without harming personal credit scores.
• 🏦 You can apply for business credit without proof of income at certain banks. The banks make decisions based on the business's potential rather than individual income.
• 🚗 A real-life example: Someone with six cars bought in their personal name ruined their personal credit. Using business credit instead could have prevented that issue.
• 💳 Business credit allows you to make significant purchases, like multiple cars, without affecting personal credit. It's all based on the business’s earnings, not personal earnings.
• 📈 Andrew Cartright stresses the importance of understanding and leveraging business credit to avoid financial mistakes made by many entrepreneurs.
• 🧑‍💼 Creating an LLC and getting an EIN (Employer Identification Number) is like giving birth to a separate entity, which builds its own credit and pays its own taxes.
• 🏦 Banks like Chase, Bank of America, PNC Bank, Truist, and US Bank offer business credit, some of them lending up to $100,000 without requiring proof of income.
• 🔄 Persistence and working with the right bankers can increase your chances of getting approved for business credit, even with large institutions.
• 💰 Business credit lines allow you to access large amounts of funding, sometimes totaling up to $300,000 across multiple banks, without touching your personal credit.
• 📈 Entrepreneurs can maintain an 850 credit score while holding millions in business debt, which doesn’t show up on personal credit reports.

Q & A

What is the main difference between business credit and personal credit?

Business credit is separate from personal credit and is built under the business’s name using its EIN. This means it doesn’t affect the personal credit score, and business credit can be used to access funds and credit lines that don’t show up on personal credit reports.

Why is it important to separate business credit from personal credit?

Separating business credit from personal credit protects the personal credit score from being negatively impacted by business debt. It also allows the business to access larger credit lines that are based on the business’s income and potential, rather than personal financials.

What are some benefits of using business credit over personal credit for business expenses?

Using business credit helps preserve personal credit, allows for higher credit limits, and provides flexibility. Additionally, business credit is often more forgiving, and defaulting on business loans does not directly impact personal credit scores.

How can a business owner build business credit?

A business owner can build business credit by first forming an LLC and obtaining an EIN number. Then, they can open business bank accounts, apply for business credit cards, and responsibly manage these accounts to build a strong credit profile for the business.

Can businesses get credit without providing proof of income?

Yes, several banks offer business credit without requiring proof of income. These banks evaluate the business’s potential income and creditworthiness rather than current revenue. Business owners can get credit based on their projected income.

What should a business owner do if they don’t have an LLC?

A business owner can easily form an LLC by visiting their state’s Secretary of State website, doing a name search, and following the steps to register the business. Alternatively, they can use online services like LegalZoom or Rocket Lawyer for assistance.

Which banks offer business credit without proof of income, and how much can they lend?

Banks like Chase, Bank of America, PNC Bank, Truist, and US Bank offer business credit without proof of income. Chase and Bank of America can offer up to $50,000, PNC Bank up to $100,000, Truist up to $225,000, and US Bank up to $50,000.

What should someone do if they are denied business credit at one bank?

If denied business credit at one bank, it is recommended to try another bank or speak to a different banker at the same bank. Persistence and speaking to someone more optimistic can sometimes result in approval. Banks have varying policies and approaches.

What are the risks of relying solely on personal credit for business purposes?

Relying solely on personal credit for business can damage the personal credit score, limit access to personal loans, and create a financial burden if the business struggles. Using personal credit also limits the available credit lines compared to business credit.

Why is it better to apply for business credit before a business needs it?

It’s better to apply for business credit before it’s needed because banks are more willing to lend when the business is in a stable position. When a business is struggling or in need of immediate cash flow, it becomes more difficult to secure credit.