One of the most difficult parts of the process of investing is funding a deal. It is true 58% of startups have less than $25,000 at their disposal during the startup phase. This is probably the number one obstacle keeping people from moving forward with their business ideas.
Is there a way to come up with money to help you with your first investment project? Money is everywhere, we just have to position ourselves with the right people or the right information to access it. Before we purchased our first rental, our priority was to get our credit score where it needed to be so creditors would lend money to us.
Since we we didn’t know much about improving our credit score we used the help of a company called Fund & Grow. This company checked our credit history and was able to provide guidance to us to help us improve our score. Once it was in a position they would be able to leverage to work on our behalf, they set up an EIN for our business and were able to negotiate with creditors to build business credit.
If you have never started a business, the EIN is the social security number the IRS gives you for your business. This number allows you to separate taxes from your personal and business.
If you are a new business getting business credit when first starting out is not easy. Many people tell you that you need to allow your business to mature before getting business credit. Our representative from Fund and Grow was able to provide us with funding that we wouldn’t have access to without their help. Not only were they working on the business side, they were also getting credit for us personally.
Soon we began to receive credit cards from various lending companies with 0% interest for the first year.
DISCLAIMER: None of the information on this website is financial advice. This is just a strategy that we utilized to get started. We will not give anyone financial advice. If you need financial advice, seek the counsel of a CPA.
