Read This Before You Hire a Business Credit Coach [Quick Guide]

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Business Credit Coach

You’ve probably landed here because you’re thinking about hiring a business credit coach. In most small business owner/startup scenarios, we recommend you do because business credit can help you obtain the working capital you need to improve, grow, and scale your operations. But, before you take the leap, you need to know a few things including alternative options and what to expect. 

Here, you’ll learn everything you need to consider before you hire a business credit coach. This is what’s covered: 

What is Business Credit? 

Business credit refers to a company’s ability to access credit cards, lines of credit, and loans. It is based on the business’ creditworthiness, which is typically determined by a business credit score. Business credit bureaus and business divisions within consumer credit bureaus measure business credit separately from personal credit. 

Recommended: This is How to Build Business Credit Fast [Step-by-Step Guide]

What are Your Alternatives for Business Capital? 

Most small US businesses are launched and operated using personal capital, which includes personal cash, savings, and credit. Business credit frees up more opportunities for growth. But, it’s not your only option. You should know what alternatives are available before you invest in something you might not necessarily need.  

So, here’s a quick list of your options and summaries of what each entails. 

  • Personal debt financing – A high FICO score through consumer credit bureaus can give business owners access to personal loans, lines of credit, and credit cards that can be used to fund business ventures. Funding amounts are typically lower than with business credit. 
  • Working capital loans & merchant cash advances – Short-term loans can be accessed through certain lenders based on business income or accounts receivable for urgent funding needs. Interest rates and fees are usually especially high. 
  • Venture capital (VC) & angel investing – Funding can be obtained through private investors and VC firms. In most cases, these investors take partial ownership over the business, or at least a share of future profits, in exchange for funding.  

Business credit is the only funding option (aside from reinvesting profits) that helps owners maintain freedom and control over their business with reasonable costs and is not limited by personal credit. 

What is a Business Credit Coach and How Can They Help?

Now, what do credit coaches do? A business credit coach will learn about your current financial situation and hear your struggles. They will help you set business credit goals and lay out a plan for you to achieve them. A good coach will then help you take the steps needed to get to the end goal and help you overcome any obstacles that you might encounter along the way.  

From establishing your business properly to getting business credit-ready and obtaining large lines of credit, capable business credit coaches know the ins and outs of the business credit world. They can help you ensure that you file the right paperwork, stay in compliance with regulations, and tell you when and how you need to take action. 

Recommended: 41+ Companies That Help Build Business Credit 

Frequently Asked Questions

Before we wrap up, let’s take a look at brief answers to some of the most common questions that I hear from my business credit coaching clients. 

  • Can you repair business credit? 
    • Yes, as with consumer credit, business credit restoration can help you improve your credit score and increase your business’ creditworthiness. 
  • Can you get business credit with an LLC? 
    • Yes, you can get business credit with an LLC or any other corporation. In some cases, you can get business credit with Sole Proprietorships, but we always recommend that our clients establish their company as a corporation. 
  • Can I use my EIN to apply for credit? 
  • Is business credit linked to personal credit?
    • Yes, most (not all) business credit lenders require a guarantor who will be responsible to repay the debt if a business fails to do so. The guarantor on a business line of credit, loan, or credit card is usually the owner… but not always. 

Are You Ready to Pull the Trigger? 

At Business Credit Workshop, we’re not like some of the other coaches. There are a few ways that we go above and beyond for our clients. For example, we have a large database of thousands of local community banks and credit unions that offer business credit. And, we have interviewed every one of them. 

Next, we have a support system made up of Business Credit Workshop students and clients. In our network, those seeking business credit help each other out. Here, you can learn from real people who are actually seeing success.

Finally, we use a trusted 7-step process to get clients $500K+ in business credit without ever having to walk into a bank. If you’ve made it this far and you’re 100% certain that you’re ready to pull the trigger, complete your business credit coaching application today.

41 Companies That Help Build Business Credit [Beyond Net 30 Vendors]

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companies that help build business credit

Countless SMB owners and startups are on the hunt for companies that help build business credit. With a quick Google search, it’s pretty easy to find lists of vendors that report on-time payments to business credit bureaus. But, once these vendors are discovered, there’s not a ton of information that explains precisely how to leverage these vendors to improve your business credit score and obtain large credit lines. 

Surely, that’s what you’re looking for. The process of building business credit isn’t difficult, but it is complex and requires guidance. So, are there companies that can actually help you build business credit? And, where can you find them? 

Yes, there are — And, you’ve found the [ultimate] list! Here, you’ll find net 30 vendors, business credit coaching & services, and business credit monitoring companies that can help you build business credit. The companies listed here are dedicated to helping you establish, build, and procure business credit; they can play a crucial role in your credit building journey, if that’s what you’re after. 

Here’s what’s in-store: 

Get ready to find out exactly where to turn when you want to establish, build, and obtain large lines of business credit. 

First, Learn About Net 30 Vendors [+List of 31]

tier-2 business credit vendor

If you’re not familiar with net 30 vendors, they are merchants that allow you to essentially buy products and services now and pay later via business tradelines — typically 30 days later. In the business credit building world, you’re looking for companies like this that also provide the opportunity to have on-time payments reported to business credit bureaus. 

Companies like Staples and HD Supply can actually report on-time, net 30 payments made on behalf of your business to business credit bureaus. We have a list of 31 (and growing) companies that you can order products and supplies from, and pay on time to boost your business credit. You can find it here: Using 30 Day Net Vendors to Build Your Business Credit Score

Next, Business Credit Monitoring Companies

business credit builder

When building your business credit score, you’ll need to see what’s happening with your business credit report. In order to do this, you need to know which companies can help you monitor business credit. There are more than a handful of reputable brands who do just that.  

First, which business credit bureaus are used by lenders? The three top credit bureaus for business loans and lines of credit are Dun & Bradstreet (D&B), Experian Business, and Equifax Business. A couple of the following companies monitor reports from all three bureaus while the rest monitor reports from just one or two. 

1. Dun & Bradstreet’s CreditSignal™ 

D&B is the top business credit bureau. Most reputable lenders will use your D&B report to determine your company’s creditworthiness. Naturally, you can monitor your D&B credit score through D&B. While you can not monitor Experian nor Equifax reports and scores with these tools, I always recommend that businesses create an account and claim their business (once a company is business credit-ready, of course). 

Recommended: Dun and Bradstreet: How to Get a DUNS Number

2. Experian Business

Experian is another credit bureau that is dedicated to personal and business credit. Businesses can monitor their reports using Experian’s online business tools. This is pretty cut and dry. 

3. Equifax Business

Like Experian, Equifax is a credit bureau that monitors both personal and business credit. And, you can claim your business listing online when you want to monitor your business credit report. 

(Note: Transunion does not currently offer business credit monitoring.)

Nav is the tool I recommend my clients use for business credit monitoring. With their free tools, you can monitor business credit from all three credit bureaus: D&B, Experian, and Equifax. The company has both paid and free plans for all business credit monitoring needs. 

Recommended: Nav Review: A Company That Helps Build Your Business Credit 

5. Credit Suite

While the platform is not as robust as Nav, Credit Suite has a credit monitoring plan that costs $24 per month and empowers companies to monitor reports from all three business credit bureaus. The monitoring software is also available as a white label product for resellers. 

Read more about Credit Suite’s full offer below. 

Finally, Business Credit Coaching & Service Companies

build business credit in 30 days

Now, you’re ready for the meat and potatoes. These companies actually work one-on-one with you to establish and build your business credit score so that you can obtain the large lines of credit that your business needs. 

By the end of the programs, they might teach you how to build credit so that you can use the right tools and tactics to successfully apply for large business lines of credit. Others will help you secure funding through their partners. 

1. Credit Suite 

Yes, Credit Suite was already mentioned above as a credit monitoring company. But, monitoring is not their core service. In fact, Credit suite is a “consultation service” and software system designed to help businesses build credit. The system is also offered as a white label option for software sellers. 

For more information about costs and to read a full overview, read Expert Weighs in on Credit Suite Reviews: Is the Service Worthwhile?  

2. Fund & Grow 

Fund & Grow is a consulting program designed to help small business owners, startups, real estate agents, and self-employed individuals build credit. The program seems to be very well organized and claims to help businesses with every step of the process from boosting their credit score through applying for a loan. They do charge origination fees.  

Recommended: Fund & Grow Facts: An Honest Business Funding Services Review

3. LenCred

LenCred is more of a funding acquisition partner than a business credit builder, but they offer financial reviews, education, and access to startup loans and working capital. All of their advisors are “FICO-certified.”  

Recommended: This is the Truth About LenCred’s Small Business Financing

4. Business Credit Builders

The first offer from Business Credit Builders is a free business credit building audio, which they value at $97. Their program teaches companies to be credit ready, separate personal and business credit, and build business credit reports and scores. The goal is to help you get lines of credit and cash loans. 

5. Midwest Corporate Credit

Midwest Corporate Credit caters to new businesses, established companies, and real estate investors. Their program helps clients get the funding they need and teaches them how to best use the capital to their advantage. In all, they’ve helped businesses secure over $250M in small business loans and lines of credit. 

6. Business Credit Workshop (Me)

Business Credit Workshop started as an in-person workshop to teach business owners how to build business credit the right way. Materials cover a comprehensive, seven-step process for establishing your business, getting business credit-ready, net 30 vendors, how to set up banking accounts, and applying for credit. Learn how to build business credit the right way. 

In our content and via our workshop and coaching, we share the answers to the following questions and more: 

  • How can I improve my business credit score? 
  • What credit score do I need to get a business loan? 
  • What is a bad business credit score? 
  • Can I build business credit without a DUNS number? 
  • How much should it cost to run a D&B report? 

Now, if you’re ready to learn precisely how to obtain $100K in business credit in 30 days with NO origination fees, join Business Credit Workshop.

A Complete Torpago Business Credit Card Review

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Torpago Business Credit Card

Torpago is a newer player in the corporate credit card game. And, they’re starting to pick up some traction in the business credit world. So, we’ve decided to examine their corporate credit card offer under a microscope and share our findings so that you can decide if this is the right option for you. 

Here’s what we’re going to cover: 


Now, let’s get to it! 

What is the Torpago Business Credit Card?

For those who haven’t heard of it, the Torpago Business Credit Card is a corporate credit card and expense management platform. Corporate credit cards like this are designed for companies with multiple employees to enable staff to use a line of credit on authorized spending. 

Torpago LinkedIn

When I first landed on Torpago’s website, it put me in mind of Divvy — both have a corporate credit line, expense management, and virtual cards among other shared features. You’ll see a side-by-side comparison of the two offers before we wrap up. 

Who Owns Torpago? 

Torpago was founded by Brent Jackson in October 2018. Before launching this company, Jackson worked as the Operations Manager at Accrualify for a year and as a Senior Consultant at Deloitte for nearly half a decade. Jackson has a strong background in the business and finance industry. 

Torpago Business Credit Card Benefits

In addition to 1% cash back on all spending, Torpago partners with other brands to deliver savings to their cardholders. So, if you use Quickbooks, Carta, Plastiq, or Doordash, and pay for these services with a Torpago card, you can get added discounts from 2.25% up to 40%. 

The company will likely continue to partner with more brands, so users will be able to access more markdowns on other future services (though, we’re not certain what those will be).  

As mentioned above, Torpago gives cardholders both physical and virtual cards. Physical cards are Visa credit cards that can be assigned to multiple staff members for each corporate account. Virtual cards are digital credit cards that can be assigned instantly without the need to wait for a physical card to arrive in the mail. And, both physical and virtual cards can be assigned to an unlimited number of staff members (as long as the credit limit is not exceeded). 

Automated expense tracking is another highlight that should get account holders excited. Each time a Torpago card is ran, data is sorted, synced, and accounted for. So, ideally, manual expense reports are eliminated.

Since the company is new, you can probably expect to see more future benefits. 

Torpago Expense Management Features 

One of the highlights of Torpago’s expense management platform is that it integrates with four other financial management platforms. 

  • Quickbooks Online
  • Oracle Netsuite
  • Financial Force 
  • Acumatica

So far and to my knowledge, no other corporate credit line and expense management platform has this many integrations (aside from maybe Stripe). 

Torpago Customer Service 

I did call the Torpago customer service number to ask if they have plans to add Quickbooks desktop to their integrations list. On that note, the Torpago phone number was a bit tricky to track down. If you are looking for it, they can be reached at 1 (650) 623-5429. 

I was disconnected the first time I tried calling in, but only spent a few seconds on the phone. The second time I called, I was told that I was the next caller in line. There was an option to leave a voicemail, which I didn’t take advantage of. 

After about 12 minutes of holding, I opted to reach out via the instant messaging option on the Torpago website. The reply time was advertised to be “under 6 hours.” I left my email address in the chat box (1:21 pm) and went back to what I was doing. 

I only ended up waiting 20-30 minutes for the first reply, but I still had more questions — I should have asked everything in one swoop. The user answering my questions was named Brent (I assume it was the founder himself, which leads me to believe the company is still very small). 

By the next morning around 10:30 am, all of my questions had been answered.

How to Qualify for a Torpago Corporate Card

If you are ready to try to obtain a Torpago corporate credit account, first look over the qualification terms. First of all, only US registered companies (sole proprietors, LLPs. LLCs, S-Corps, or C-Corps) can apply. So, if your company isn’t organized, you won’t be able to get a credit line. 

Next, you need an EIN and business checking account. Your account will be linked to the Torpago platform to verify businesss income. At this point, Torpago wants to see your monthly business income, but they do not publicly state the amount needed to qualify. My assumption is the higher the better… I wouldn’t apply without at least $10K in documented monthly revenue. 

Finally, you must not participate in prohibited activities. 

  • Sale of Schedule-I or Schedule II-V controlled substances without a pharmaceutical license
  • Production, sale, or distribution of marijuana, guns, ammunition, or other weapons
  • Gambling, betting, lottery, sweepstakes, or games of chance
  • MLM, cryptocurrency, counterfeit products, escort services
  • Professional services including law and consulting

See the full explanation in the above link if you aren’t sure or your business tends to fall into a gray area. Torpago seems to be designed for tech startups, but many other businesses can still qualify for an account. 

Does Torpago Report to Business Credit Bureaus? 

Most of my students and clients want to know if Torpago reports to business credit bureaus like Dun & Bradstreet. The reason this is important is because when on-time payments are reported to credit bureaus, it has a positive effect on a company’s business credit score.  

According to Torpago, on-time payments are reported to business credit bureaus. This is good news for anyone looking to build their business credit score. 

Recommended: This is How to Build Business Credit Fast [Step-by-Step Guide]

Competitor Overview: Torpago vs Divvy

Both Torpago and Divvy are free corporate lines of credit that require no personal guarantee, a rare offer. And, while they share these commonalities, they aren’t one in the same. Below are the key differences between the two offers. 

Torpago vs Divvy

If you’re interested in one of these credit lines because of the automated expense management, you might look at available integrations. For now, Torpago is the clear winner on this front if you use either Financial Force or Acumatica. However, Divvy currently offers the best rewards by a long shot. 

Learn about corporate card offers from Ramp, Amazon, Brex, Stripe, and Divvy. 

Final Thoughts

While Divvy has a similar offer with higher rewards, a more established partner base, and a more robust customer service team, Torpago is still a new player and has plenty of time to catch up. While I might not recommend applying for this credit line above other contemporary corporate offers, I wouldn’t rule them out as a legit and convenient option for business cash flow management.If you want to learn how to obtain $100K in business credit in 30 days, join the Business Credit Workshop today. 

A Complete Capital on Tap Review: Is This Business Credit Card Any Good?

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Capital on Tap

Since March 2021, when the UK-based company launched their US business credit card, Capital on Tap has been a hot topic for business owners looking to obtain funding. They’re offering business credit lines up to $50K with cashback on all purchases. Sounds enticing, right? But, should you hop on this train or explore other options. 

We’ve done all of the research so that you don’t have to. Here’s what’s in store:

Now, learn everything you need to know about the Capital on Tap business credit card so you can decide if it’s right for you. 

What is a Capital on Tap Business Credit Card? 

A Capital on Tap business credit card is a line of credit geared for small businesses. In the US, They offer lines of credit from $5K to $50K and up to 2% unlimited cashback on all spending. They boast that you can apply for a line of credit in as little as two minutes and get approved within 48 hours. 

Capital on Tap login

Capital on Tap Card Features & Benefits 

Before you think about applying, why would you want to? Capital on Tap has features and benefits that, when compared to other offers, will help you make a decision about whether or not this is the right card for you. 

  • Unlimited Cashback – 1-2% cashback on all spending can be redeemed instantly to help repay your card balance
  • Bonus Cashback Intro Offer – $50 to $199 cash back when you spend $5K to $15K in the first three months
  • Competitive Credit Limits – Credit lines from $1K to $50K
  • Fee-Free – No foreign transaction fees or ATM charges 
  • Employee Cards – Up to 20 supplementary cards for employee spending
  • Spend Management – Budgeting tools to monitor employee spending 
  • No Annual Fee – Restrictions apply

In addition, the card advertises, “no interest if you pay your card in full each month.” But, this isn’t super special. If you pay a credit card balance right away, you can usually avoid interest anyway. Actual interest for Capital on Tap cards ranges from 9.99% to 34.99% APR. 

*Furthermore, while there is no initial fee for ATM use, your interest rate may increase when you pull cash from your balance at an ATM. 

Regular Rewards vs Founder Rewards

Capital on Tap USA

In a nutshell, if you qualify for Founder Rewards through Capital on Tap, you’ll reap higher unlimited cashback and a more generous introductory offer. Here, see a full breakdown.

Regular Rewards vs Founder Rewards

One great aspect of the offer is that you can eventually upgrade from Regular Rewards to Founder Rewards. Account reviews happen regularly and can lead to higher credit limits and decreased interest rates. 

Does Capital on Tap Require a Personal Guarantee? 

Yes, Capital on Tap requires a personal guarantee and will require that you (or a guarantor) submit your SSN, along with your business EIN, when you apply. This means that business debts acquired via Capital on Tap will be subject to personal collection if they fall into delinquency. 

However, the inquiry is a “soft pull,” which means it won’t affect your credit score. So, if you do apply, you aren’t taking a risk with your scores. 

Not all business credit cards require a personal guarantee. However cards that do not require a personal guarantee are rare and typically come with higher business income stipulations. Recommended: Here’s How to [Actually] Get Business Credit With Just an EIN

Who Owns Capital on Tap?

While the name sounds like an offer that could be akin to Capital One, the two companies are unrelated. Capital on Tap was co-founded in 2012 by David Luck and George Karibian. Luck, Capital on Tap’s current CEO, has a history in business management, VC, and private equity funding. Karibrian is a serial entrepreneur with PaymentSense, Judo Payments, and Euroffice currently under his umbrella of businesses. 

Capital on Tap Complaints

Capital on Tap Complaints

All business funding options come with their fair share of complaints. So, what do the people say is wrong with Capital on Tap’s offer? Only 3% of Trustpilot reviews have had a bad experience. Here’s a summary of what unsatisfied cardholders and others don’t like. 

  • High interest rates
  • Poor customer service
  • Excessive junk mail

Note that most complaints mention the company’s advertising in one way or another — most do not mention the actual product. Keep in mind that financial “pre-approvals” are rarely a guarantee that you will qualify for a funding offer. 

Capital on Tap Competitor Overview

Capital on tap is popularly compared to Amex and Capital One’s business credit card offers. So, let’s take a look at how they stack up side-by-side. For this case, we’ll compare the Capital on Tap Founder Rewards Card with Amex Blue Business Cash and Capital One Spark Business Cash specifically.

Capital on Tap vs Amex vs Capital One

All of the cards come with their own set of pros and cons. For example, a Capital on Tap Founder Rewards Card comes with the lowest possible interest rates (9.99%) on regular spending… and also comes with the highest (up to 34.99%). Spark Business Cash and Amex Blue Business offer the best introductory offers (Up to $500 with qualified spending). And, neither the Founder Rewards card nor the Amex Blue Business card will charge an annual fee. 

You’ll need to decide what’s most important to you when you make a credit card application decision. 

Conclusion: Is Capital on Tap Any Good? 

From what I can tell, the Capital on Tap offer stacks up well against the competition and offers some decent benefits for a business in the right position. As you know, it’s not your only option. While it’s not my favorite business credit card, it’s definitely not the worst. If you’d like to learn how to obtain $100K in business credit in 30 days, join Business Credit Workshop.

Trade References: Learn Everything You Need to Know [+Templates]

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Trade References

If you apply for a line of credit for your business, there’s a chance that you’ll need to share a trade reference with the lender. Or, if you’re a vendor, you might be asked permission to be listed as a trade reference for one of your business customers. Even more, if you extend a line of credit to one of your business customers, you may want to ask them to provide you with a trade reference. So, what are trade references and what all do they entail? 

If you’re clueless on the subject or just need a bit more information, we’re here to help. Let’s explore the fundamentals of trade references so you can gain a clear picture. Here’s what we’ll cover.  

Now, let’s get to it!

What are Trade References? 

Trade references meaning

A trade reference or credit reference is a professional testimonial from a vendor or supplier on behalf of a business customer to vouch for that business’s reliability. In most cases, trade references are required or recommended on business financing applications as a form of documentation of the company’s ability to pay debts on-time, as agreed.  A positive trade reference can make all the difference in a successful financing application. 

And, a trade reference request is a solicitation for a trade reference from a vendor. For example, a supplier that has received on-time payments from a business customer each month might be asked by that customer to provide a trade reference that outlines the company’s payment history. The business customer could then use the reference on an application for a term loan, line of credit, or credit card. 

A trade reference is comprised of seven parts: 

  1. Business Contact Information – Legal business names, addresses, and phone numbers for the vendor and the client/customer involved. 
  2. Reporting date – AKA “as of date,” the reporting date is the date that the reference is collected.  
  3. Manner of payment – Details whether payment was made via cash, check, debit, or credit card. 
  4. Rolling, 12-month high credit – Indicates the highest amount of credit used in the past 12 months when applicable. 
  5. Current total amount owing – Denotes the amount owed to the vendor ass of the reporting date. 
  6. Current total past due – Identifies when an amount owed is unpaid past the agreed-upon date of payment. 
  7. Selling terms – Outlines the payment agreement including payment amount, due date, and net terms. 
  8. Date of last sale – Reveals the last time a service was rendered or order placed. 

Business credit bureaus want to see everything above 

What is an Example of a Trade Reference? 

You might think of companies that you pay monthly utilities to as decent references for your creditworthiness. However, when it comes to business financing, you’ll get more klout from vendors and creditors within your industry. For example, if there is a company that supplies your business with funding, operating materials, or services, they might make a good trade reference — even better if they allow you to “buy now and pay later.” 

You can get trade references from any company that allows your business to pay for supplies or services at some point after delivery. By doing busines with these vendors and paying as agreed, you can collect references that help you establish your credit. 

Some net 30 vendors, suppliers that offer 30-day net payment terms on business orders regularly report payments to business credit bureaus under certain conditions. We’ve reviewed some of them, including how to get the most out of their offers: Summa Office SuppliesCrown Office SuppliesHome Depot Business AccountAmazon Corporate Credit Line

How are Trade References Used? 

On a credit application, a trade reference can help showcase a borrower’s reliability when no business credit score has been established. In this case, a trade reference can be attached to the original application. 

Another way to use trade references is to manually request them from vendors and report to D&B and other business credit bureaus. This helps establish a high business credit score, accessible by any lender who looks at your profile. 

How Can You Report Trade References to Dun and Bradstreet? 

Dun and Bradstreet (D&B) is the leading business credit bureau. To build your business credit score, you will need to first request a DUNS number. After your business credit profile has been established (or claimed), you can work to build credit and increase your business credit score. 

One step you can take to improve your score is to manually submit trade reference letters from vendors that you do business with. There are some companies that you can not manually submit trade reference letters from: 

  • Companies that already report to D&B (most major lenders and some 30-day net vendors)
  • Companies without a D&B credit profile
  • Companies that have been prohibited by D&B for untrustworthy activity
  • Companies outside the US
  • Companies with legal ties to your business
  • Companies with internal rules against D&B reporting 

Before you manually submit a trade reference, you will need to send a trade reference request to your vendor. Include a trade reference template that asks for all of the required information for quicker reciept. 

After you have a reference to submit, you will need to upgrade your D&B account to a paid CreditBuilder™ account. With this account level access, you can submit trade reference letters online or through your account concierge. 

Note that a paid D&B account is NOT necessary to build business credit. There are many things you can do to build business credit fast, without paying for expensive subscriptions from credit bureaus or monitoring services. This is exacly what we teach in our Business Credit Workshop. 

Trade Reference Templates 

When you need to request a trade reference from a vendor, you’ll need a trade reference request letter and a trade reference template that the vendor can fill out. Feel free to alter these for your needs: 

Final Thoughts

A trade reference provides potential lenders and credit bureaus with more information than they are able to find via algorithms and search engines. These references can be invaluable for a business that is just starting its credit-building journey. If you want to learn how to get $100K in business credit in 30 days, join Business Credit Workshop today. 

A Deep-Dive National Funding Review: Should You Accept an Offer?

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National Funding Review

If you run a business and you’re in the market for outside capital, you may have received a National Funding offer in the mail (perhaps for “up to $300K” with a piece of cardboard that resembles a credit card) or seen an ad online. At first glance, it probably sounds enticing or at least mildly interesting. But, you need to know more before you take a leap and get your company or yourself into the wrong kind of debt. 

Here, we’re always on the lookout for small business funding opportunities and want to give you the most honest, unbiased information you can find about your options. While National Funding has been around since 1999, we haven’t done a deep dive analysis on their loans and financing offer… until now. Today, let’s explore everything you need to know about the lender so you can decide if they’re right for you! 

Is National Funding legit? Here’s what we’ll cover: 

Now, let’s get to it!

What is National Funding? 

National Funding, Inc. is a privately-held small business debt-financing lender based in San Diego, California. They’ve been around since 1999 and you’ll find 72 National Funding reviews in a Google search, so they’re reputable. Business owners trust them for what they offer. But, not every lending offer is the right fit for every situation.  

At this institution, there are three core funding offers: 

  1. Small business loans
  2. Business loans for bad credit
  3. Equipment financing and leasing

When you see a company offering any type of financing for bad credit, it’s wise to be discerning. In fact, I always recommend business owners educate themselves on how to repair their credit before getting into “bad debt” since it’s not as difficult as most people assume.  

Who Owns National Funding? 

National Funding was founded by Dave Gilbert. Gilbert has been with the company for over 22 years and acts as the present-day CEO.  

national funding scheme reviews

According to LinkedIn, Gilbert launched the company just two years after graduating from USC Marshall School of Business where he received his BS in Entrepreneurship. He is a financial supporter of several sports-related charities, essentially sponsoring local teams. 

Does National Funding Report to Credit Bureaus? 

Other than on their blog, National Funding doesn’t mention any credit bureaus on their website. Nor could we find any lendees to tell us whether or not they report. So, as of today, no, National Funding does not report on-time payments (or poor payment history, for that matter) to credit bureaus. 

Low-interest, legitimate business credit is typically based on a credit score. Sometimes lenders use a founder’s FICO score while others use a business credit score from a reputable business credit bureau like D&B to determine a business’ creditworthiness. It doesn’t seem like that’s the case with National Funding’s business loans for bad credit. 

How to Qualify for a National Funding Loan

If National Fundings’ creditworthiness is not necessarily based on a credit score, it has to be based on something else. You can get business funding in as little as 24 hours after approval with full documentation of three-months’ business bank statements, which will determine your loan amount. 

When you apply on the website, you’ll be asked to provide some contact information as well as your annual gross income. If you received an offer in the mail, you’ll be asked to share your invitation number (probably to track marketing efforts). 

Apply for a national funding loan

Once you submit your info, you will be redirected to the application process where you will first be asked for your personal FICO score. 

If your income is above $12.5K per month, you can continue with the application process. 

And, if your income is less than required, but your FICO score is above 650, you will be redirected to “apply for a credit card” with Eve Financial. Eve Financial is a newer company that essentially processes your information and matches you with a lender. National Funding likely gets a commission from every loan approved through the platform. 

Now, back to the National Funding application process. If your income qualifies you, you’ll be asked to share more information. You’ll also be opted in to receive text messages if you don’t uncheck the box to revoke permission, so read carefully as you proceed. 

The National Funding website will generate some forms for you to sign electronically. This only takes a few moments before you will be asked to prove your business income by uploading electronic business bank statements. If you have enough revenue, you’ll qualify. 

Small Business Funding Offer Overview

If your business generates $12.5K or more per month and you’re still reading, it’s important to look at what kind of funding you might qualify for. Here’s a closer look at the three funding offers from National Funding. 

1. Small Business Loans

Essentially, a “small business loan” through National Funding is a working capital loan or cash advance, intended for short-term needs. Your debt will be repaid through a percentage of each ACH transaction through your credit card processor, which is how they can use business income alone as a qualifying factor. 

In the case of National Funding, you can expect a pretty hefty “flat fee,” also paid as a percentage of each transaction and in addition to any processing fees.

2. Business Loans for Bad Credit 

National Funding’s “business loans for bad credit” are essentially the same a the small business loans but with higher fees. Instead of looking at your credit, the company examines your income. Your fees will be higher than with more traditional business financing. 

National funding ignite reddit

If you feel like you won’t qualify for a more traditional funding option like a term loan, line of credit, or credit card, and you’re in a pinch, companies like National Funding do have money to offer. 

Recommended: Credit Secrets Book Review: Can You Erase Bad Credit History? 

3. Equipment Financing & Leasing

Finally, National Funding offers equipment leasing and financing. Essentially, if a piece of equipment breaks and you need it to operate, you can use a lender like this to help you replace it. In this case, funding could be necessary fast and it wouldn’t be a bad idea to pay a higher flat fee to keep your doors open. 

Disclosure: In addition to these three funding options, National Funding advertises “merchant cash advances,” “working capital loans,” “unsecured business loans.” They also target specific industries like construction, commercial trucking, agriculture, medical practice, landscaping, and senior care. Their offers are almost the same across the spectrum, unchanging by title.

Recommended: How a Trucking Company in Snellville, GA Got Over $200K in Businesss Credit

Conclusion

If you have poor credit, an immediate business need, and your revenue is at least $12.5K per month, National Funding might be right for you. The company has been in business long enough to prove that they’re legit. However, I almost never recommend a business owner apply for this type of funding. Instead, learn how to qualify for better funding options through business credit coaching. 

National Funding themselves talk about trade credit, business credit scores, and building your business credit score. I commend them for it, but recommend you steer clear unless you are facing an emergency. There’s a better way. If you want to learn how to qualify for $100K in business credit in 30 days, join Bussiness Credit Workshop today.

Ramp Credit Card Review: Is This the Corporate Card for Your Business?

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Ramp Card Review

If you’re on the hunt for the best funding and cash flow options for your business, traditional banks may not be your best bet right now. Lately, we’ve been writing about some of the most popular, alternative corporate card offers. When researching the top credit cards for startups, Ramp (a fairly new player in the game) ended up near the top of the list. While we weren’t surprised, that’s when we realized we should take a closer look and share our findings. 

This is what we’ll cover here: 

Read on to learn more. 

What is a Ramp Card? 

A Ramp card is a corporate credit card designed to help businesses save money. By …

Ramp, aka Ramp Financials or Ramp Business Corporation was co-founded in 2019 by Eric Glyman, Gene Lee, and Karim Atiyeh. All three co-founders main current C-level management positions at the company.  

Ramp credit card Crunchbase

While the company hasn’t been around as long as some of its competitors, the leadership team has notable experience in the financial industry. CEO, Eric Glyman, and CTO, Karim Atiyeh, also co-founded Paribus, where current CPO, Gene Lee, was a software engineer. Paribus was acquired by Capital One, where the trio stayed on staff until they launched Ramp. 

How Can Ramp Help You Save? 

In my opinion, Ramp rewards rank up there with the Brex card and other corporate credit cards. Here’s a summary of what you get if you go with Ramp for your business. 

Ramp Rewards

Unlimited Staff Cards With Smart Spending Limits

Do you want to enable multiple staff members to use your credit, but not sure how you can limit spending appropriately? If so, Ramp has you covered. If you qualify for the corporate credit card offer, you can take advantage of as many staff cards as you need. Plus, you can set spending limits on each card. 

Not only can you set limits, but the card’s algorithm identifies opportunities for savings. For example, you may be paying for duplicate subscriptions, missing cash back, or have a lower pricing plan available through one of your software vendors — Ramp will analyze spending and alert you to opportunities like this, which is a unique and invaluable perk. 

Zero Fees & 1.5% Cash Back on Spending

First, let’s look at the fees you don’t have to pay: 

  • Foreign transaction fees.
  • Late fees.
  • Interest fees.
  • Annual fees.
  • Costs per card. 

Take a look at your current credit cards and figure up how much you’re paying for the above fees and think about whether it’s time to make the switch. Other coporate credit cards like Brex and Divvy offer zero fees; they also offer cash back. So, it’s smart to weigh your options.

Now, in the case of Ramp, the cash back is 1.5% on everything. So, if you spend $500K per year, you’ll earn $7.5K in cash back alone. While this may not sound as impressive as 7X points on certain spending like the competition, Ramp’s offer opens your company to earn on any type of spending instead of specific costs like restaurants or software. 

$175K in Ramp Partner Rewards 

If you utilize offers from any of Ramp’s partners, you need to consider how much you can save by using their card to pay for services and subscriptions. Cardholders who leverage all offers can save up to $175K. While that’s not necessarily likely, you can save hundreds and even thousands with specific vendors. 

For example, if you use your Ramp card to pay for AWS, you can get preferred access to credits. You’ll also be able to take advantage of $150 in Google Ads, 25% off your first year of Pulley equity management, and a 2.5% discount on Plastiq bill pay. 

Ramp Partner Rewards

Some more impressive offers are $15K and $30K credits with Triplebyte software engineering and Datadog cloud monitoring respectively. If you’re using either of these services, that alone might make choosing a Ramp card more than worthwhile. 

Will You Qualify for a Ramp Corporate Credit Card? 

Ramp card requirements aren’t super transparent. But, we do know that there are no credit checks or founder guarantees. So, you 

Ramp underwriting seems to be based on the following factors: 

  • How many employees your business has
  • Your company’s average monthly card spending 
  • Whether or not you have over $250K in your business account

I can almost guarantee that if you do not have at least $250K in your business account at this time, then you won’t qualify for the card. In this case, another card might be a better fit. 

Recommended Reading: 

How Does the Ramp Card Stack Up Next to Competitors?

Before you make a decision on whether or not to apply, it’s a good idea to take a peek at Ramp side-by-side with its top competitors. So, here’s what we know. 

Ramp vs Brex vs Stripe vs Divvy

Ramp vs Brex vs Stripe vs Divvy

Conclusion

If you can qualify for a Ramp card, the only reason you might not want to would be to go with a competing corporate card. Otherwise, this is a fantastic offer. Now, if you can’t yet qualify, but you want to learn how to get up to $100K in business credit, you’re probably a good candidate for our credit courses and coaching. Join Business Credit Workshop today to start learning.

Brex Card Review: Is This Corporate Card Offer Too Good to be True?

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I mentioned Brex in my last post about the best business credit cards for startups (high on the list, I might add). That’s when it dawned on me that we haven’t covered the Brex corporate card offer yet. And, this is something you need to see. 

The two top highlights for the Brex card are that there is no personal guarantee (underwriters don’t look at your personal credit score) and it’s free. Not every business will qualify for one of these cards. But, if you are able to, it’s definitely worth looking into. 

This is what’s in store: 

Keep reading to learn everything you need to know about the Brex corporate card and find out if this offer is too good to be true or right for your business.

Brex Card Overview

The Brex card, issued through the Brex financial operating system, is a corporate credit card, which means it’s designed for businesses with multiple employee spending (in this case, tech, life sciences, and eCommerce companies). However, corporate cards don’t have to be used by several staff members. In fact, some applicants qualify for a single corporate card with a $1K limit for individual business spending. 

Brex corporate credit card

Most corporate cards don’t require personal guarantees. Instead, applicants whose companies demonstrate a high probability to repay the funds are extended credit. The Brex card works the same way. So, if you own a company and you have a low FICO score, it shouldn’t affect your ability to obtain credit. 

Now, the most impressive feature of this card is that it’s free. Cardholders pay no annual fee, no interest, and no other costs. 

Who Owns Brex? 

Brex was co-founded by Henrique Dubugras and Pedro Franceschi in San Francisco, California. The pair previously co-founded the online payment system, Pagar.me before selling in 2016 to Brazilian credit card processor, Stone. According to Forbes, the pair moved to the bay area to attend Stanford before dropping out after just a few months. Entrepreneurship seems to favor them. 

Brex Account Offers

When you sign up for a Brex account, you will have the option to apply for three different offers: Cash, Card, or Cash & Card. 

Brex Cash vs Brex Card Accounts

A Cash account is similar to a checking account, though the website explicitly states that it is not a bank account. Still, you can use a Brex Cash account to deposit money, make payments without fees, and earn rewards. Using your “daily pay” account, you can earn rewards on all your spending.

A Card is the Brex credit card. Essentially, this is a way to get funding with net 30 terms, which means your account must be paid in full at the end of each month. Traditionally, credit cards offer users the ability to make a “minimum payment” each month. Brex terms are a little different. So, if you’re looking for a way to fund a large purchase and pay it off slowly over time, this card isn’t for you. 

But, you can use a Brex Card to boost cash flow while you earn rewards. Furthermore, the company claims that tech companies specifically can get 10-20X higher limits than they will with other cards. 

Cash & Card is the best of both worlds. Boost your cash flow with the Brex Card while you handle business transactions through Brex Cash. 

How Does Brex Make Money? 

Rather than charge interest rates and annual fees, Brex earns a percentage from merchants for each transaction. Cardholders are offered attractive rewards on spending with partners and given incentives to pay daily rather than monthly like most other credit cards. Shorter payment terms for users frees-up cash flow for the brand, allowing them to offer attractive terms.  

Brex Card Rewards Summary

Above, I mentioned that Brex caters to tech, life sciences, and eCommerce businesses. While being in one of these industries isn’t a requirement to obtain credit, those that fall under this umbrella will benefit the most. In addition to being a free card with no fees or interest, here are the benefits of using Brex for your business spending.

Up to 30K in Introductory Bonus Points

Brex is the only corporate card with zero fees that currently offers an introductory bonus. Just for linking your new Brex credit card account to Brex Cash, you will earn 20K bonus points. In addition, when you spend $3K on your card in the first 3 months, you’ll earn 10K bonus points. 

Earn 1-8X Points Per Dollar on Spending

All Brex spending has the potential to earn you points. 

With a Brex Cash account, you can earn 8X points on rideshare apps, 5X points with Brex travel partners, 4X on dining at restaurants, 3X on recurring software subscription payments, and 1X on everything else.  

And, with a Brex Card, you can earn 7X points on rideshare apps, 4X points with Brex travel partners, 3X on dining at restaurants, 2X on recurring software subscription payments, and 1X on everything else. 

Points can be redeemed through Brex travel, via gift cards and cash back, or as statement credit (for cardholders who don’t use Brex Cash). 

$150K Worth of Partner Perks

Brex partners include big names like AWS, Slack, and Google Ads. If you were to utilize all of the savings offered as a Brex cardholder, you could redeem up to $150K in perks. 

  • AWS – $5,000 credit and up to $100,000 in AWS Activate, depending on eligibility
  • Slack – 25% off 12 months of eligible Slack paid plans
  • Carta – 20% discount on first year and waived implementation fees, plus 10,000 Brex Points
  • Zoom – 20% discount on annual Zoom subscription
  • Quickbooks – 40% off your first 12 months of QuickBooks
  • Google Ads – Up to $150 in Google Ads credit
  • Dropbox – Get 50% off on all Dropbox Business, Standard, or Advanced plans
  • Gusto – Get 50% off any plan for 12 months

Note that many of Brex’s competitors offer similar perks. 

Built-In, Real-Time Expense Tracking  

Essentially, Brex expense management tools enable you to put your expenses, including employee spending, on autopilot. Upload receipts and the software will match spending in your accounting platform. You may be able to cut reconciliation time by up to 50% and spend up to 75% less time chasing receipts. 

Brex Expense Tracking

You can also set up monthly spending limits for each card, which can give employees more flexibility and management more time freedom. 

Another key feature of Brex expense management are the virtual cards. Divvy has a similar offer, which means your employees don’t have to wait for a physical card to be issued. The technology seems to be a hit amongst users. 

Consultant, Accountant, and Travel Agent Connections 

When you book your trips via Brex Travel, you can access experienced corporate travel agencies for free. Travel agents are available 24/7 to help you redeem points and book with 30% to 60% discounts. 

Looking to hire an agency to help you with consulting services? Brex cardholders can access a directory of vetted agency and accounting partners that you can leverage to help you scale your business. Take advantage of the opportunity to work with service providers experienced with Brex expense tracking. As far as I know, other credit card companies don’t offer anything like this. 

How to Qualify for a Brex Card

Brex isn’t super transparent about their qualification terms, but here’s what we do know: 

  • You must have an EIN for a US-based business
  • You must have a business bank account
  • You will need to verify your identity with photos of your government-issued ID

Furthermore, here’s what we think, based on anecdotes from existing cardholders. 

  • You should have $50K to $100K in the bank at all times

If you bank with a smaller community bank or credit union, you will need to upload your two most recent bank statements. The process is quick and painless, but applications can take up to 15 days to review. 

Brex vs Ramp vs Stripe vs Divvy

Now, here’s how Brex stacks up side-by-side with its top competitors: Ramp, Stripe, and Divvy. 

Brex vs Ramp vs Stripe vs Divvy

Each of the corporate cards is free and comes with some alluring rewards. Some of the key value indicators when we compare are that Brex is the only card that seems to offer an intro bonus. Next, in order to qualify for Stripe’s corporate card, you must use their software and either wait or ask for an invitation. 

Final Thoughts

Brex has an impressive corporate card offer for tech, life sciences, and eCommerce companies. If you can qualify and you’ll take advantage of the rewards, I’m sure it’s worthwhile – you can’t really go wrong with free. But, if you aren’t able to qualify, you have plenty of other options. Want to learn how to obtain $100K in business credit in 30 days? Join Business Credit Workshop today! 

What are the Best Unsecured Business Credit Cards for Startups?

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business credit cards for startups

New business owners often fund their ventures with personal capital, which includes savings, loans, and credit cards. Without established business credit, companies sometimes have a hard time finding business credit cards they can qualify for. I’m often asked about the best business credit cards for startups, so I wanted to do a write-up to share with everyone. 

Here’s what’s covered: 

Keep reading to learn everything you need to know. 

Startup Business Credit Basics 

A business has its own credit scores, different from FICO scores. Before a business can qualify for a credit card, it must build business credit, which is separate from personal credit. A company must form their business in a way that sets them up to become “business credit ready,” network with banks, establish business credit profiles, then build small tradelines of credit. When they make the right moves, they can generate high credit scores and qualify for large lines of credit. 

Companies without business credit can get credit cards, but are often limited by personal credit. 

Secured vs Unsecured Credit Cards

There are several categories of credit cards available for businesses and individuals: secured and unsecured. Secured credit cards are designed for companies and people who want to build or repair credit by reporting responsible payment history. Unfortunately, secured credit cards require a deposit, essentially allowing you to spend your own money in exchange for reporting on-time payments to credit bureaus. 

On the other hand, unsecured credit cards extend deposit-free lines of credit to companies and individuals based on existing merit. Unsecured cards are typically available to those with moderate to excellent credit history. The higher the credit score, the more card benefits and higher limits a business or person can usually qualify for. Here, we’re going to talk only about unsecured credit cards for startups. 

Corporate vs Travel Rewards vs Cashback Card

Companies usually turn to credit cards to manage cash flow. Another top reason to use credit cards for business spending is to save and earn. Ideally, you want to pay off your card balance each month to avoid interest payments and cash in on the available discounts and rewards. 

  • Corporate cards help large companies manage employee spending and offer savings with high profile partners. 
  • Business travel cards are designed for companies that want to earn travel rewards like airline miles, free hotel stays, and more.
  • Business cashback cards provide rewards in the form of points that can be redeemed as cash to a bank account, applied toward a statement balance, or redeemed for other items. 

So, when you explore which card is right for you, first decide which you’re more interested in. Then, proceed through this list accordingly. 

What is the 5/24 Rule?

One last item to note before we move on to explore the cards listed here is Chase’s “5/24 rule.” All card issuers have provisions that, if not met, can immediately disqualify you from the ability to obtain a card. Chase has a black and white rule that if you have opened five or more personal credit cards within the past 24 months, you cannot open a new credit card account with them. 

So, if you want to apply for a Chase credit card, start with them before you move on to other banks. 

Best Corporate Credit Cards for Startups

Typically, corporate cards have lower risk to you as the business owner because they require no personal guarantee. But, they can be trickier to qualify for. Qualification terms are instead based on a company’s financial track record and proven ability to pay back funds. Right now, there are some impressive names in the corporate card game; here are the four top corporate cards for startups, none of which charge fees. 

1. Brex 

brex card

Read more about the Brex corporate card. 

2. Stripe 

stripe corporate card

Read more about the free Stripe Corporate Card’s cashback rewards. 

3. Divvy

divvy card

Read an in-depth Divvy credit card review before you apply.

4. Ramp

ramp card

Learn more about the Ramp card. 

Best Travel Rewards Credit Cards for Startups

Now, let’s take a look at the best startup business credit cards for the best travel rewards and sign on bonuses that I know of. 

1. Amex Marriott Bonvoy Businesses

marriott bonvoy business card

Read a Marriott Bonvoy Business credit card review and comparison.

2. Barclay American Airlines AAdvantage Aviator Business

Barclay AAdvantage Business Card

Learn more about Barclay’s AA Biz card. 

3. Bank of America Alaska Airlines Business

BoA Alaska Airlines Business card

Learn more about the BoA Alaska Biz card. 

4. CitiBusiness American Airlines AAdvantage Platinum 

CitiBusiness Alaska Airlines Advantage card

Learn more about the CityBiz AA Platinum card.

Best Cashback Credit Cards for Startups 

Now, these cards can help you manage cash flow while you earn as much as possible on spending for your startup.

1. Capital One Spark Cash Small Business

Capital One Spark cash business

Learn more about the Capital One Spark Cash card.

2. Chase Ink Business Preferred

Chase Ink Business Preferred Card

Read a deep dive into the Chase Ink Business Preferred card.

3. US Bank Business Leverage 

US Bank Business Leverage

Learn more about the US Bank Biz Cash card. 

4. Wells Fargo Business Platinum

Wells Fargo Business platinum card

Read more about Wells Fargo business lines of credit before you apply. 

Final Thoughts

These are the top business credit cards for startups, including corporate, travel rewards, and cashback options. We’ve written in-depth reviews on a handful of additional business credit cards you might also find interesting: 

And, if you’re ready to learn how to get $100K in business credit in 30 days, join Business Credit Workshop today! 

Should You Use a Real Estate Investor Line of Credit to Buy or Renovate Property?

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Real Estate Investor Line of Credit

One of the best ways to build net worth is through investing in real estate. Whether you buy and flip or buy and hold, real property can generate tremendous profits for individuals and businesses. The average ROI on real estate investment is in the 12-16% range, which is quite a bit higher than the stock market.

Once you get serious about your real estate investment strategy, you need to explore all of your financing options. Here, I want to talk specifically about real estate investor lines of credit. 

Here’s what we’ll cover: 

What is a Real Estate Investor Line of Credit? 

A real estate investor line of credit is a revolving credit line dedicated to the purchase, repair, and renovation of investment property. This type of financing is extended based on equity in a real estate investment and can be used much like a credit card, which means that an investor can tap into the funds multiple times. 

These credit lines are extended from banks and credit unions to individuals and businesses for the purpose of funding new investments or rehabilitating or updating an existing investment. The process is fairly straightforward and similar to a HELOC loan on an owner-occupied home. 

And, here’s how these dedicated credit lines stack up against some of the most common real estate (RE) investment financing options. 

Credit Cards vs Loans vs Lines of Credit vs Hard Money

Let’s quickly clarify the differences between credit cards, loans, lines of credit, and hard money as they can apply to real estate investing. 

First, a credit card is a revolving line of credit that can be used for various purposes. Visa, Mastercard, American Expresss, and Discover cards can be used universally to pay for almost anything, as long as the seller accepts these payment forms. While most home sales channels don’t accept credit cards, you can convert credit cards into cash to pay for investments. Credit card interest is around 15% on average. 

Next, a loan is usually extended with set terms. This means that you will be given a certain amount of cash to be used at one time then paid back by a given date. In Real Estate terms, a loan typically refers to a mortgage and can be taken in the full amount of the property, less any down payment. Typical repayment terms are 15, 20, and 30 years. Right now, the average interest rate on a mortgage is between 2.3 to 2.9%.

Then, lines of credit can be used like credit cards with revolving terms, yet typically have interest rates akin to mortgages. In a sense, it may seem like they provide the best of both worlds. However, lines of credit typically can’t be used to fund an entire home purchase and instead provide a short term solution to an immediate real estate investment need. 

Finally, hard money loans are usually reserved for investors with less than ideal credit as a short-term funding option since the average interest rates are between 11 and 18%. A hard money loan is usually extended to a buyer by a private party like an investor, business, or the seller of the property. 

Frequently Asked Questions

Here are answers to some of the most common questions I hear when discussing real estate investing with both BCW members and colleagues. 

Can you get a line of credit on an investment property?

Yes. As long as a property has equity in it, whether it is used as your primary residence or place of business or solely as an investment, it can be leveraged to obtain a line of credit. 

How do real estate investors get financing?

Real estate investors fund their home purchases and renovations through a variety of financing options including loans, credit cards, lines of credit, and other less common channels. 

What is an investment line of credit?

An investment line of credit is a short-term financing solution that provides the borrower with a revolving line of credit on either a property that is not occupied by the owner or another investment. 

Can you take out a line of credit on a rental property?

Yes. You can take out a home equity line of credit (HELOC) for a property that you rent the same way you can a home that you occupy. 

Can you get a 30-year mortgage on an investment property?

Yes. 30-year mortgages are available for investment properties and owner-occupied properties. 

How can I invest in real estate with no money and bad credit?

The most common way that people with bad credit can get started with real estate investing is through hard money lenders. These situations are usually short-term (until the buyer can improve their credit) and used as a last resort. 

Can I use a business line of credit to buy a house?

If you have a large enough business line of credit, you can use it to buy a house, but you should not treat it as a 30-year mortgage because this would incur much higher costs than necessary. Learn more about the BRRR method of real estate investing. 

Is it smart to use home equity to buy an investment property?

If an investment can generate more income for you, it can often be a smart move to use your home equity to buy another property. 

Conclusion

If you’re looking for a line of credit that you can tap into repeatedly on your real estate journey, you will use the funds solely for real estate, and you already have equity in property along with a good credit score, a real estate investor line of credit may help you make your next move to secure your future. I find that it’s best to diversify your funding options. 

If you’re interested, here I explain how to use business credit to buy real estate.  And, if you want to get up to $100K in business credit in 30 days, join Business Credit Workshop today.

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