This is How to Leverage Business Credit to Transform Your Life

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You’re going to come across a lot of advice about why you should or shouldn’t acquire debt financing for your business. Without getting into that debate, yes, “bad debt” can have negative results in your personal and professional life. But, when you know how to leverage it properly, business credit can completely transform your company and your lifestyle in tremendous ways. It can also bring additional revenue and cash flow.

Do you want coaching to obtain Business Credit and Grow your Cashflow?
Do you want coaching to obtain Business Credit and Grow your Cashflow?

Discover the "3-Step System" to Get You Significant Business Credit (Without Having to Show Any of Your Financials). So that you can increase your cash flow, have true freedom and peace of mind!

Apply Now
Lasso Brag

So, if you have a good business credit score (or you’re ready to learn how to get there), you know how to turn $1 invested in your business into $2, and now you want to learn how to take your business to the next level, this guide is for you. 

Here, you’ll find the following: 

My Experience With Business Credit  

Before you dive into the nitty-gritty details, I want to share my story. Learn where I was before discovering business credit. Then, find out what caused the shift in my beliefs and understanding of business finance. After that, learn how business credit can completely transform your life. 

Where I Was Before I Discovered the Power of Business Credit

Before I discovered the immense value of business credit and how to leverage it to fuel a successful real estate investment company, I was working as a technical recruiter. My job was to place high-level IT professionals and contractors that made $100 to $300 per hour with big companies like Johnson & Johnson and Merck. 

My job came with a salary, a nice office, plenty of windows, and an overall pleasant environment. Plus, I was able to earn a commission when I placed someone at a position. It took a lot of work and a few dead-end jobs to get to this point but actually, I liked my job at the time. 

At that stage in my career, I had the potential to earn more than just a base salary, which was important to me, and I liked my co-workers. I knew that if I worked harder I could make more money and I found comfort in that. 

But, one Wednesday morning around 8:30 am, I was driving to work when I looked to the side of the road and noticed a couple of guys playing golf. And, I realized that I wanted the freedom to play golf in the middle of the day. It was at this moment, I first questioned the 9 to 5 lifestyle and I started to feel like a caged bird. 

Suddenly, I didn’t want to work from 9:00 to 5:00 every day and limit myself to two weeks of paid vacation each year for the rest of my life. Instead, I wanted to spend time with my family and have the freedom to travel whenever I wanted. I was in my 20’s. And, before that moment, I didn’t believe I could have that kind of life for another 40 years when I was ready to retire. 

But, at that moment, there was a shift in my beliefs. While I didn’t yet know I could attain the dream, I decided to try anyway. I made the leap and launched a real estate investment business while working a full-time job. 

At this time, I had to use personal capital — my own personal credit cards and cash to fund my business. Personal credit cards were helpful because they allowed me to operate as if I were a larger business. And, my goal was to get the results a larger company would get, use the revenue to pay off debt, then repeat the process. So, it was working. 

However, the more personal credit you use, the worse your score ends up because your utilization is too high. So, launching the business ended up messing up my personal credit. I was still hopeful, but there were some obvious problems.

The Headline That Changed My Beliefs

During the early stages of business, I was a sponge. I was trying to learn everything I could. So, I signed up for every email list that I thought might help me create the success I wanted, even if I would only get scraps from each of them.

One day, I got an email with a hook that said something like, “26-Year-Old-Kid Gets $100K in Funding in 100 Days.” While I didn’t believe it could be true, I was still intrigued. So, I clicked the link, watched the webinar, and I paid for the course. 

After that, I bought every course and book I could find about business credit. From these sources, I pulled out all of the best parts, let go of the useless or outdated information, and used my newfound knowledge to come up with a plan for my own business.

Then, the magic happened in 2007 when I decided to launch a direct mail marketing campaign. I wanted to send letters to homeowners that might have distressed properties because I was looking to invest in real estate. And, I thought this would be a great way to get off the ground. So, I applied for a business credit card to fund the campaign. 

When I got approved for a $25K business credit card with no reporting to my personal credit profile, I was amazed. At that time, the highest limit I had on my personal credit was $15K. I used the credit card to execute a successful campaign, got my company off the ground. 

So, I got a few more business credit cards, cleared $100K, and I invested heavily in my marketing. When I saw that the model worked, I went in and doubled down. Before this, I never would have been able to afford radio ads. But, once I had credit, I was able to leverage advertising channels that delivered substantial results. As a result, I started to see a very positive return on my investment. 

How This New Discovery Shaped My World

Soon after obtaining business credit, I was able to leave my job as a technical recruiter because I was making more money in real estate. And, it didn’t matter if I had high credit utilization on my business credit cards because nobody could really see it on my personal credit report. 

Now, I am able to see success a lot quicker because I have extra funding behind me. I have opportunities that didn’t exist before. I can do more marketing which opens up more revenue. I was able to get an office, hire employees, and founded a real company within 90 days of getting business credit.

Years later as a result, I have a real estate portfolio and I can play golf whenever the heck I want. My wife and I have been able to go to the places and see the things we want — we’ve been to 16 Caribbean islands and I’ve been to some really awesome places like Japan and Thailand. So, we did cross over to the lifestyle we had dreamed about. It really was possible.

There is one more, completely accidental transformation that has happened as a result of what I learned that is even more exciting. Shortly after realizing that business credit was the key to obtaining the capital I needed, I attended a seminar. And, while I was there, someone overheard me talking about my experience and stopped me.

The stranger asked me to repeat what I had just said. And, when I had told him that we can get all this funding for our business beyond personal credit, he asked a question that would change my life forever. 

We were on a lunch break and he suggested that I come up with five tips to secure business credit to share with the audience. Then, at the end of my presentation, ask, “Does anyone want to learn more?” If they did, we would ask them to walk to the back of the room and sign up for a workshop to learn how to implement these five tips to obtain new business funding over the next 30 days. 

At the time, I despised public speaking. I had said that standing up in front of a crowd to tell my story was something I would never do. But, I had a choice and I said, “yes.”

But, I didn’t have a course to sell. 

So, I grabbed an index card, came up with five bullet points, and presented them to the crowd, my heart pounding the entire time. And, at the end of my 15-minute speech, one-third of the group stood up and walked to the back of the room to sign up for my course where we were going to delve deeper into those five bullet points. I was like a happy puppy with all of the energy and excitement around this new discovery I had to share with these people. 

I thought back to all my recent training and reading materials. Then, I took what I liked from the best parts of all of it and left out the rest. And, when I launched my business credit coaching business in the back of the room at the seminar that day, I only hoped I could bring something more valuable to the marketplace. 

7 Secrets to Obtaining Business Credit Revealed PDF

The reason Business Credit Workshop’s name is so simple is that I only had a few minutes to come up with it. Now, I’ve coached over 1,800 individuals to obtain the credit they need to take their businesses to the next level. And, this doesn’t include all of our members who have taken advantage of the backend training we offer. 

Today, I have a database of bankers. And, I talk about the trade secrets that the “gurus” didn’t want to tell people. I talk about the top 50 lenders I like to use. I share the nitty-gritty details. 

My five bullet points are now a fully-sharpened, seven-step system for obtaining business credit. Because of what I learned, my business and personal life have improved tremendously, and I’ve been able to help thousands of other business owners make life-altering transformations within their companies. 

Solving the Mysteries of Business Credit  

Now, I want to tell you how you can take what I know and apply it to get funding for your business. Get ready to learn the fundamentals and the secrets of getting the working capital you need to grow your company and increase your revenue. 

Why You Need Working Capital to Scale Your Business

I really love the way one of my past coaching clients, Brendan Purnell put it when interviewed for a case study: “Personal credit is limited and cash flow is a gamble. Make sure you have adequate capital because, in the blink of an eye, you can go belly-up if you are under-capitalized.” 

40% Businesses Struggle to Pay Operating Expenses

According to the Federal Reserve, 40% of businesses struggle with their operating expenses, which is the top financial challenge business owners face. And, if you can’t get the capital you need to operate, you can’t keep your doors open, let alone grow and thrive. 

I recently spoke with someone who had a hair salon in Oregon back in 2009. She saw an opportunity to offer a professional-quality, organic haircare line and nobody in the US was doing it yet. In the beginning, she made the hair products available exclusively to her salon clients. When the product line was a hit, she decided to put the shampoos and conditioners online to see if there was enough interest to go national. 

And, within less than a month, she got an inquiry for a $20K order. But, she didn’t have the capital to fulfill it. So, after a lot of head-scratching, she decided to refer the customer to her supplier (the only other seller she knew of). Ultimately, she liquidated the business because she felt in over her head. 

Now, when you know about business credit, you can have an entirely different outcome. Here’s an example of a similar problem with a happier ending: 

One of my original coaching clients, that I met at the first speaking event, is a man named Greg Dashkin. Greg lives in New Jersey where I live and was running a marketing business when we met. He sold t-shirts, pens, and other swag to small and large companies. And, he was making money at his business. 

But, when he would get a $20K order, he couldn’t fulfill it due to lack of capital and he would have to refer sales to his competitors. He was missing out on a lot of potential revenue and was constantly stuck. Many times, this exact problem causes potentially profitable businesses to shut down. 

So, after hearing Greg’s problem, the event host told him to talk to me. He told him that I had something that could change his business. Greg and I  started working together and he got $100K in credit pretty quickly, which solved his problem. 

And, he was one of the most appreciative entrepreneurs I’ve ever worked with. To this day, we still talk, we still work together, and he still encourages me to keep spreading the message. 

Furthermore, you don’t have to be stuck to leverage business credit for growth. Some entrepreneurs just want to scale faster. 

For example, I work with an Amazon seller named Scott. When he first came to me for coaching, he was pretty successful, earning about $30K per month. In eCommerce, the margins are about 20%. And, once you know how to sell a 10-cent hat for $5, it’s easy to scale. 

But, if you rely on cash flow to invest back into your business, growth is slow. But, after Scott realized how to obtain credit for his business, his sales jumped from $30K to $130K. When you have the capital to invest in more products, you can cross the six-figure income threshold.

Business Lines of Credit vs Angel Investing or Venture Capital

In full disclosure, I’ve never worked with Angel Investors or Venture Capitalists to fund my business. But, I did work in a business incubator office. So, I networked and had friendships with local venture capitalists (VCs) in New Jersey. And, I really like their system. 

If you’ve ever watched Shark Tank, you’ve seen how innovative entrepreneurs try to pitch their ideas to highly successful business investors. That’s precisely how VC works. There’s nothing wrong with this system (plus, who wouldn’t want to work with Mark Cuban?). When you work with a VC, you have a mentor who builds you up and gives you funding. 

But, there’s a catch — you also have to give up equity in your business when you work with a VC or angel investor. Ultimately, an investor wants a portion of your profits. Plus, most of the time, they push you to sell in the end. And, that’s not what I have ever wanted. 

So, instead of giving up equity in your company, I like the idea of learning to obtain the same amount of funding and maintaining full control over your operations. 

And, there’s a myth that you can’t use credit everywhere. It’s actually extremely easy to convert credit cards into cash or a check. So, In place of Angel Investing or VC, I prefer business credit cards or business lines of credit. When I first started obtaining credit, I leveraged big banks like Chase and Bank of America. 

Then, I realized that I preferred to work with local community banks and credit unions. I elect for smaller banks because the underwriting for national banks is extremely strict. And, if you don’t fit inside a set box, it can be more difficult to obtain credit. 

On the other hand, when you work with a portfolio lender (which means the institution lends its own money) or a credit union, the underwriting is done in-house. So, the requirements are more flexible and, if you have someone at a bank who can vouch for you, people are more willing to work with you. 

Recommended Reading: 

The Basics of Business Credit for Absolute Beginners

When I speak to business owners and I start talking to them about business credit, one of the first things I tell them is that they need to have a good business credit score. And, many of them don’t know that exists. Furthermore, some of them have existing business credit scores that they are unaware of. 

So, before you can implement any of the advice you read here, you need to understand your business credit profile. There are three bureaus that monitor business credit: 

  1. Experian Business 
  2. Equifax Business
  3. Dun and Bradstreet (D&B) 

So, as with your personal credit score, your business will have varying scores from different bureaus. The DUNS number from D&B is a little different from the scores Experian and Equifax Business use to classify business credit. And, one of the first action steps to take is to register for a business credit monitoring account. 

Nav Business Credit Monitoring

Nav is a business credit monitoring platform that packs a punch. There are three reasons you need to register for an account. 

  1. You can scan your report for inaccuracies and clean up anything negative. 
  2. The platform will give you feedback about the areas you need to improve to boost your score. You can use this feedback to stay informed as you build your credit profile. 
  3. For a monthly fee, you can upgrade your account and enroll in “Loan Builder,” where the company reports to credit bureaus that you are paying on-time each month. So, you get a better credit tracking service with helpful tools and simultaneously increase your business credit score. 

Having a good credit score is not the entire process, but it is a fundamental part of the system. Without this, the rest of what you learn here is useless. 

So, if you don’t already have one, go sign up for a Nav account right now. Then, read on to dive deeper. 

The Greatest Business Credit Obstacles You’ll Face

When you start at the bottom of the mountain learning about business credit, you can’t see every obstacle you’ll face before you’re able to stand at the peak and look down. But, if you’re told what to expect, you can better prepare yourself.

There are a couple of hurdles that arise at financial institutions every few months or once per quarter. 

  1. Financial programs change
  2. Bank employees leave 

First, for example, if you’ve been in business for a couple of years and you’re profitable, a bank might extend a “no-doc” business line of credit one quarter. With a no-doc, no financial statements are required. And, you may be able to get a no doc for up to $100K. But, if things change within the lending industry or the bank’s own financials, that program might not be offered later. 

So, this is not a ‘set it and forget it’ system. It’s a living, breathing organism. If you place a tent in the woods, you can’t just waltz back to the forest months later and expect it to be there — it could easily be taken or destroyed by weather or wildlife. Business lending is the same.  

Second, your contacts at the bank might leave. Sometimes they will tell you and sometimes they won’t. In some cases, these people move to other banks, and in others, you won’t know. So, once you have a rapport with someone, if you don’t keep their LinkedIn profile or personal cell phone number, you may end up needing to start a brand new relationship. 

So, keep your finger on the pulse to monitor the mood of the banks and maintain close relationships within them. That’s why our account managers are always networking with banks to find new programs and stay up-to-date with changing environments with hundreds of contacts. And, this is why some of our long-time clients come back every few years for more coaching. 

While these ever-changing ecosystems involve quite a bit of effort, take it from me, the view from the summit is glorious. 

The Key to Unlock Your Business Credit Potential 

Trade Secrets Financial Gurus Don't Want to Explain

When you want to overcome the challenges above, you need to have the right mindset. So, if you only ever listen to one piece of advice about business credit, let it be this: build rapport with the right people. 

While this sounds simple in theory, this tip needs to be taken seriously. Rapport and relationships are the trade secret that most financial gurus don’t want to explain to you.  This is probably because they always want to be the best. But, I don’t feel like I’m doing my job unless my clients and students can master the concepts I share. 

For example, after learning our approach to obtaining business credit, one of our coaching clients drove from New Jersey to upstate New York to Key Bank, which used to be called First Niagara (now KeyBank). In just one day, he came home with a line of credit for each of his two businesses. He got $50K for each, totaling $100K. 

Do you want coaching to obtain Business Credit and Grow your Cashflow?
Do you want coaching to obtain Business Credit and Grow your Cashflow?

Discover the "3-Step System" to Get You Significant Business Credit (Without Having to Show Any of Your Financials). So that you can increase your cash flow, have true freedom and peace of mind!

Apply Now
Lasso Brag

So, without my help, understanding the processes and techniques he had learned from Business Credit Workshop, and how to network and build rapport, he went out on his own and had successful results. He then shared his new contact with me. After that, we were able to help many future coaching clients obtain substantial lines of credit from Key Bank because we then had someone within the institution who knows us, likes us, and trusts us. 

Still, I have to do my job of filtering out businesses and placing them with the most well-matched banks and lenders. And, I help entrepreneurs become qualified before introducing them to our contacts. But, Greg’s situation was satisfying because I felt like he made it out of the workshop with mastery over the principles we teach.

And, anyone can do the same thing once they understand rapport in professional relationships. But, like in Greg’s case, some of them come back anyway because they know we have account managers dedicated to networking with banks to keep our database up-to-date — and they don’t always want to do the work on their own. 

To build rapport, one actionable takeaway is to call the bank or email even when you don’t need anything from them. You want to check-in from time to time to time and treat bankers like friends. Because when bankers or brokers know you, like you, and trust you, they will work with you and with underwriters to make things happen. 

An advanced hack (that I learned from my wife) is to keep track of what’s going on in peoples’ lives. Take notes. With modern technology, you can use a CRM or helpdesk platform to record information about people. But, as an individual or small business owner, you can simply write things down in your day planner. 

For example, if you know somebody is having a baby, write that down. Then, when you call back, you can ask them how the baby is doing. Of course, people love it when you listen to them and pay attention to what’s going on in their lives. And, while you may not have considered this important in the realm of credit, it most certainly is. 

Business Credit is a Lifelong Journey with a Bank or a Person

When I started my real estate investment business, I went to my local real estate investment club and made friends with the owner because he was successful. And, six months after I met him, I started asking questions to pick his brain. Try to think of the business credit journey as a lifelong professional relationship with a bank or a person. After that, other pieces of the puzzle fall into place. 

So, make friends with the person who gets the approvals at the bank. And, here’s how you can do that. 

  1. Network with the banks
  2. Build rapport with decision-makers 
  3. Ask what goes into an approval
  4. Listen to the answer  
  5. Implement your friend’s advice 

To get credit cards, your best friends don’t have to be bankers, but it will help if you get out to some Chamber of Commerce meetings and make meaningful connections. Yes, the meetings can be kinda boring, but everyone is there to network and build their own professional networks. Invite someone to dinner or a drink and try to establish a new friendship. 

Another great channel for networking, especially today with social distancing in place across the globe, is LinkedIn. Start learning how to leverage the platform to your advantage and see if there’s anything you can do to help someone that would be a beneficial professional connection to have, namely credit union or bank employees. 

This knowledge will come in handy especially in times like right now when we’re experiencing major economic change. Because of COVID-19 and the PPP program, business owners are scrambling to get their low-interest, forgivable loans to stay afloat. So, banks are working unprecedented hours to service their customers. 

Traditionally, bankers work from 9:00 to 5:00 Monday through Friday. Presently, they’re in the office after hours, weekends, and even on Easter to process 30K applications. Still, I’m getting personal emails and texts from bankers along the lines of, “Hey, Joe. PPP money may run out soon, so let’s get you taken care of.” It’s a small effort that brings a big result, in this case someone at the bank looking out for me. 

Final Summary

Now, if you are ready to take the next step to revamp your business and lifestyle, I have some homework for you to start today: 

  1. Sign up for an account with NAV.
  2. Check out your business credit score and create a plan to clean up anything that makes your business high risk for lenders.
  3. Join at least one new group where bankers hang out. 
  4. Introduce yourself to someone who works at a community bank or credit union in your area. 

And, if you want to keep learning and improving your situation, make sure you check out our recent client case study here.

US Stimulus Package: What Small Businesses Need to Know

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US Stimulus Coronavirus Relief

The US Stimulus has some extremely helpful legislation for small businesses written into it. And, there are certainly quite a few rumors floating around. If you don’t have the truth, how are you supposed to know what to do? 

The answer is, you can’t. Unless you have all pertinent information, your decisions are sure to be ill-informed. But, the Stimulus may be your saving grace right now, so read on to find out. 

  • What is the US Coronavirus Stimulus?
  • How will new legislation provide relief for small businesses? 
  • How can you obtain an SBA 7(a) loan and have it forgiven? 

Now, go grab a pen and paper because you’re going to want to take notes. 

First, What is the US Coronavirus Stimulus of 2020? 

While many people are talking about the US relief legislation for COVID-19 as if it’s a single document that will help individuals and small businesses get through this catastrophe, it’s not that simple. In fact, thus far, the stimulus legislation has been rolled out in three phases. 

And, while the second phase was important, it didn’t focus on small businesses like the first and third. So, for this purpose, let’s look at phases one and three. 

US Coronavirus Relief Important Dates

Next, How Does the Coronavirus Preparedness and Response Supplemental Appropriations Act Help Small Businesses? 

The Coronavirus Preparedness and Response Supplemental Appropriations Act or H.R. 6074 was made law in early March in response to the COVID-19 pandemic. This bill primarily outlined new funding rules and allocations for emergency response organizations and certain departments of government. And, it opened an existing SBA 7(a) loan, Disaster Assistance to individuals and small businesses that had been affected medically or financially by the Coronavirus. 

SBA-guaranteed Disaster Assistance is now available to individuals and small businesses in a declared disaster zone to help pay for any damages that are not covered by FEMA. The low interest (3.75% for business and 2.75% for non-profit) loans can be used to pay for physical damage and economic injury caused by a given disaster. 

Working capital loans of up to $2 million and economic injury relief loans up to $10K can be obtained through the program. When H.R. 6074 passed on March 6, 2020, the SBA opened this loan to the entire United States and outlying territories. 

And, How Does the CARES Act Help Small Businesses? 

What Type of Funding is Available to Help Small Businesses? COVID-19

The rate of unemployment skyrocketed in the month of March. And, the CARES Act was introduced on March 19 as a solution to keep employees paid during this critical time. An entire section of this bill is dedicated to small businesses. 

The small business section of the CARES Act covers new legislation for the following: 

  • SBA 7(a) loans for small businesses, deferment, forgiveness opportunities, and prepayment penalties 
  • Entrepreneurial development for owners
  • Requirements for financing programs through the Women’s Business Center and the Minority Business Development Agency

In a nutshell, what does this mean for you? 

Paycheck Protection 

First, the bill introduces SBA-guaranteed, low-interest (1%) “interruption” loans, which are now being called Paycheck Protection loans. These loans will be forgivable under certain terms (i.e. as long as you continue to pay your staff and use the funds primarily for payroll, you won’t have to pay them back). 

M&T Bank has a great visual infographic you can take a look at for the PPP Program here

mtb ppp program infographic
M&T Created a great infographic for the Payroll Protection Pogram

Furthermore, if your loan does not qualify for forgiveness, payments are automatically deferred for six months — you won’t start paying on a Paycheck Protection loan until six months after you obtain funds. And, you will receive no penalty if you are able to pay the loan off early. 

Entrepreneurial Development 

Next, new funding has been allocated to SBA partners for entrepreneurial development including help with navigation through the Coronavirus pandemic. Programs might include low-cost or free guidance on sanitation and health standards and will likely also involve new general business development training and resources. 

Women and Minority-Owned Business

If you were interested in a business grant but did not have the means to meet the required 1:1 or 1:2 funds matching, you may have a new opportunity to rescue or grow your business. According to the new law, certain women and minority-targeted SBA-guaranteed funding programs will no longer require funds matching. These programs help female and minority entrepreneurs with grants and training on finance, management, marketing, and other operational aspects of a business. 

So, you’ve repeatedly heard that economic development grants are unicorns. And, maybe the government was hiding them and has now released the mythical creatures to pasture in the SBA’s front lawn. But, you shouldn’t expect them to be easy to catch — they’re still unicorns. 

How to Utilize an SBA-Guaranteed Coronavirus Economic Disaster Relief or Paycheck Protection Loan

SBA 7(a) loans are not issued directly through the Small Business Association. Instead, the department partners with banks, credit unions, and other financial institutions. They guarantee the funds so that if a business goes into default, the bank does not lose money. 

If you ever had a federally-backed student loan, you may have an idea of how these programs work. You apply for a loan through a financial institution, often with the help of a broker. Then, the loans go into deferment so that you are not required to pay them back for a set time. For student loans, deferment typically lasts through the duration of your education. 

You will need to find a bank or a broker with which to apply for a loan through one of these programs, which shouldn’t be hard. Most major lending institutions will be able to help you. 

Coronavirus Disaster Relief & Paycheck Protection Loan Eligibility

All small businesses in the US and outlying territories are eligible to apply for one of these SBA 7(a) loans at this time. You must be able to prove that you were in operation on March 1, 2020, and that you are considered a small business under the SBA’s guidelines. Companies including Sole Proprietorships, Contract Workers, and Self-Employed persons may qualify. 

Typically, a small business is a company with less than 500 employees. However, if you run a business with multiple locations that each employ less than 500 staff members, you could still qualify. Use the SBA’s small business size standards tool to see if your company size might qualify. 

So, How Can You Get a Coronavirus Economic Disaster Relief or Paycheck Protection Loan Forgiven? 

Through the new guidelines laid out in the CARES Act, Coronavirus Economic Disaster Relief funds are eligible for debt relief. This will defer payments until the end of 2020. And, while interest will accrue, your principal payments and fees will be waived during this time. 

And, Paycheck Protection loans will be eligible for forgiveness under certain terms. You can have your entire loan forgiven as long as at least 75% of the funds go toward payroll and the remaining 25% or less is used to pay for interest on mortgages, rent, and utilities. “Payroll” includes salary, paid sick leave, and paid family leave for staff and self. 

So, if you plan to use funds for operational costs that fall outside of the listed activities or for growth-related investments, look for a different type of funding. 

Around the time that your Paycheck Protection loan is set to come out of deferment, you will need to apply for forgiveness. Again, this process will be similar to that of forgivable student loans that you might be more familiar with. 

Additional SBA Resources 

For more information about COVID-19 financial support for your business, see these resources from the SBA. 

Final Thoughts

It seems as though there may be a silver lining in this cloud. And, as long as your business credit qualifies you for funding, you might be able to take advantage of an unprecedented relief opportunity. If you need a guide to help you through the paperwork jungle, don’t hesitate to reach out with questions. 

Stay well and stay safe.   

Meet Celtic Bank: A Humble Brand With an Enormous Reach

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Celtic Bank

The economy has been a roller coaster lately. And, if you don’t play your cards right, you could easily crash and burn. So, if you do what you can right now to prepare, you will come out on the other side ready to thrive. My advice is to use this time to learn everything you can about business finance and use the knowledge to get ready for an economy on the upswing. 

So, let’s take a look at one of the quiet financial institutions that play a major role in the US economy: Celtic Bank. Here’s a crash course on what the bank has to offer right now. 

If you’re interested in the above (and, I think you should be), keep reading. 

Celtic Bank Company Overview

Founded in 2001 by Reese Howell, Celtic Bank, Utah, is a soft-spoken financial institution that has a strong foothold in the US financial ecosystem.  By “soft-spoken,” I mean that they don’t brag about their partnerships (which are pretty big names). 

Formally as a direct lender, Celtic offers residential mortgages, construction loans, SBA and USDA loans, and secured business loans. But, they don’t limit themselves to these offers.

Celtic Bank Reviews

Previously, we’ve covered the highlights of Stripe Capital, the Stripe Corporate Card, and Bluevine. So, guess who’s working behind the curtain to power those programs? That’s right — Celtic Bank Corporation. They also lend through Square and many other brands. But, you won’t see them name-dropping their partners or blatantly boasting about what they have to offer. 

(And, the quiet institutions are usually the ones you need to watch closely.) 

Which Credit Cards are Issued by Celtic Bank? 

I’m not going to include a full list here. Instead, here’s a handful of Celtic Bank credit cards and a summary of features you can leverage. 

1. Stripe Corporate Card 

The Stripe Corporate card is a $0 interest, fee-free card from Stripe with 2% cash back on top two spending tiers. 

Celtic Bank Credit Cards: Stripe Corporate Card

Recommended: Have You Heard About Stripe’s Free Credit Card & Cashback Benefits? 

2. Bluevine Business Credit Line 

Bluevine’s lines of credit — though not their business checking accounts — are serviced through Celtic Bank.

Celtic Bank Credit Cards: Bluevine Line of Credit

Recommended: Bluevine: Free, High-Yield Small Business Checking! Are They Serious?  

3. Indigo Credit-Builder Mastercard

Celtic’s most well-known unsecured credit card for less-than-perfect credit. 

Is Indigo Credit Card Through Celtic Bank?

4. Surge Credit-Builder Mastercard 

Surge is made to help people build credit with an unsecured credit line, serviced by Celtic Bank, offered by Continental Finance. 

Is Celtic a Suge Credit Card?

5. Reflex Credit-Builder Mastercard

Reflex is another unsecured credit-builder card from Continental Finance, serviced through Celtic Bank (an almost identical offer to Surge). 

Celtic Bank Credit Cards: Reflex & Surge

Frequently Asked Questions

Is Celtic Bank a real bank?

Yes, Celtic Bank is a real bank, located in Salt Lake City, Utah.  

Why is Celtic Bank on my credit report?

If you have a Stripe Corporate Card, Bluevine line of credit, Indigo, Surge, or Reflex unsecured credit builder card, you may see Celtic Bank on your credit report, since they are the bank that issues these cards. 

Is Celtic Bank FDIC insured?

Yes, Celtic Bank loans and lines of credit are FDIC-insured. 

Is Celtic Bank an SBA-approved lender?

Yep, Celtic Bank is SBA-approved, and even made the cut as an SBA-preferred — this means that Celtic Bank can approve SBA loans themselves, without secondary approval from the Small Business Association. 

How is Celtic Bank rated?

Celtic Bank BBB rating

On the consumer side, Celtic Bank isn’t necessarily a fan favorite. They aren’t BBB accredited, and they have a D- BBB rating. 

What credit score do you need for Celtic Bank?

Credit scores for a Celtic Bank loan or line of credit vary by offer, since each program has its own set of terms and conditions. But, a few of the bank’s offers cater to less-than-perfect credit. A Bluevine line of credit, for example, requires a minimum FICO score of 625, while other offers might be even more lenient.

What credit cards are with Celtic Bank?

Celtic Bank is the servicer behind some popular and novel credit card offers, namely the Stripe Corporate Card, Bluevine’s line of credit, Indigo, Surge, and Reflex credit cards. 

How do I contact Celtic Bank?

Celtic Bank Phone Number

You can contact Celtic Bank via their website, where you can request a text back on their live chat or via their contact form, You can email help@celticbank.com. Or, you can call 801-363-6500 to speak with a representative. 

Final Thoughts

This post has been updated from the original piece, published in a 2020 series we wrote about newer financial institutions, to help small business owners navigate trying times. In those days, Celtic Bank was behind some PPP loans and other novel offers. Today, they are just as relevant — you can still take advantage of their offers to help build your credit. However, rather than use personal credit builder cards, I like to teach business owners how to build their business credit scores. To learn how to obtain up to $100K in as few as 30 days, join business credit workshop. 

Could a Stripe Capital Loan Get Your Business Through a Rough Patch?

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Businesses are always in need of working capital. Now, we need it more than ever. So, I wracked my brain for one of the best solutions I know of (that we haven’t written about previously) that would be especially helpful for businesses in the current economy. And, the first resource that came to mind was Stripe Capital. 

I’m seeing a lot of business owners who were working on their personal credit to get ready for new financing to grow their companies before the COVID-19 pandemic disrupted commerce in ways we never saw coming. And, the reason this option was at the front of my mind is that the company doesn’t require a personal guarantee, which is rare.

So, what’s this mean for you? 

Here’s what’s in store:

If this information could be helpful at this difficult time, keep reading. 

What is Stripe Capital? 

For those of you who aren’t familiar with Stripe Capital, it is a business financing service that Stripe, known for its payment processing solution, offers to its existing users. The company gives customers next-day access to funds for daily operations based on their transactions. Think of it as “Stripe working capital.”

Like many other working capital services, the funds can be used to purchase new equipment, pay employees, or any other activity that will help you maintain or grow your business. Yet, the program varies in several ways from other comparable services. To learn more, keep reading. 

When you accept an offer for a Stripe Capital loan, the company will not make a decision based on your personal or business credit. Instead, capital offers are based on transaction volume and history of payments processed through your Stripe account. So, if you are a current user, this could be just the solution you need to keep your doors open through a dilemma.

You Might Also Like: Shopify Capital Review: What are the Benefits & is it Worth it?

How much working capital can you get from Stripe? 

The company website advertises loans in the amount of $15K, $20K, and $25K. But, you are not necessarily limited to a single loan. Some customers with existing loans will have the option to apply for another loan after making payments toward the original funding amount. And, you can pay off your loan at any time. 

Since Stripe’s fees are fixed based on the size of the loan taken, you would receive no cost hardship or benefit (i.e. lower interest payments) from paying early. And, this could potentially open you up to a new financing offer from Stripe sooner than if you were to pay the funds back as agreed. 

You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?

Does Stripe report on-time payments to credit bureaus? 

Stripe does not require a credit check for funding approval. The capital program seems to have no relationship with D&B or any of the personal or business credit bureaus. So, this type of financing will not help you boost your credit score. Merchant cash advance companies are not required to report to credit bureaus. 

Note: If you need to build credit, it may be better to start with Net30 vendors that report to credit bureaus. However, you won’t have the freedom to use the funds outside the companies that finance your purchases. 

Have you heard about the free Stripe Corporate Card benefits?

Stripe Capital Eligibility Requirements

Stripe Capital requirements are still in the evolution stage. As of right now, funding is offered to select merchants. Yet, this is expected to change.

As of today, if you have not received an email from Stripe or a notification in your dashboard that invites you to accept an offer for funding, you may not qualify. However, you can let the company know that you are interested in the program. Even if you’re not sure you will accept when the time comes, now might be a good time to get your name added to the list. Visit https://dashboard.stripe.com/capital to register your interest. 

Register Interest in Stripe Capital Loan

The system is powered by a machine-learning API that looks for certain eligibility criteria. These criteria include sales volume and transaction history. And, this works with low credit barriers because of the repayment structure. 

You might also like: What’s the Best Payment Processor for a Small Business? Really

Stripe Capital Repayment Terms

Repayment for Stripe Capital doesn’t look like what you’re probably used to if you’re only familiar with loans and credit cards. Actually, payments are set up more like a merchant cash advance (MCA). Instead of paying a set amount each billing cycle, your loan is paid back daily from a percentage of your online sales. 

Repay Stripe Capital Loan

So, one day, you may make a payment over $1K, the next day, if you have no sales, you don’t make a payment. Smaller loans will have a smaller daily percentage take out than larger loans. These numbers might range from 9% to 15% of daily transactions. And, when you don’t make a payment, there will be no penalty. This is a super convenient repayment option for anyone. 

How Much Will You Pay? 

Obviously, no financial service comes without a cost, so here’s the catch. You will pay a set fee on top of the amount of your loan. While the fee will vary, here’s what you can expect. 

Amount of Stripe Capital Loan

The set fee that you will pay for your loan might be around 10%, according to the current advertising. So, a $15K Stripe cash advance might cost about $1,500. Does this stack up to the existing competition? Take a look for yourself. 

MCA CompanyAdvance Fee Fees for $15K LoanFees for $30K Loan
Stripe~10% ~$1,500~$3,000
Lendio18%+ $2,700+$5,400
Fundbox4.66%+$699+$1,398+
CanCapital 3% + $595 $1,045$1,495

As you can see from the table, each MCA provider has varying fees. And, their repayment terms can range from 5-20% of daily transactions. Slow repayment with a company offering a variable rate can cost a lot in the long run. 

Frequently Asked Questions

What is Stripe Capital

Stripe Capital is a merchant cash advance offered to select, existing Stripe customers. They offer next-day access to funds that can be repaid as a percentage of daily sales.

Does Stripe do a credit check?

For Stripe Capital, no — Stripe does not do a credit check. Instead, offers are extended to high-volume transactions that take place on the payment platform.

Does Stripe offer financing?

Yes! Stripe offers financing to existing users based on transaction history. Stripe Capital and the Stripe Corporate Card are two options.

Conclusion

It’s always been crucial to keep enough capital on-hand to power your operations. And, if you’ve been affected by the situation, you know why. If you are a high-volume seller and existing business customer, Stripe Capital may have just what you need to move forward and keep your doors open or even scale your business as you planned.

While merchant cash advances (MCAs) aren’t my go-to for recommended business funding, this is a legit offer for Stripe users who need funds quickly. With that said, do your due diligence and shop around before you accept a financial offer from any lender.

And, if you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today!


5 Legitimate Real Estate Auction Websites You Can Check Out Today

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Business Credit Workshop Member Access Only

To accompany our BRRRR method how-to post, we’ve compiled a members-only list of five legitimate real estate auction websites that you can access today. Use this list as a resource to build your real estate portfolio.

  1. US Marshall seizures
  2. US Department of Treasury seizures
  3. IRS real property sales
  4. GSA Auctions
  5. International Asset Sales

In addition, be sure to check your local sheriff’s department for a list of properties that have been seized in your county.

The BRRRR Method: A Real Estate Portfolio-Building Blueprint

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BRRRR method

You already know that real estate investing is a surefire way to generate a substantial income. And, you’ve been wondering how you can start building a real estate portfolio now so that you can reap the rewards and retire early. Maybe the BRRRR Method is just the springboard you need to reach your goals. 

When I first published this post, mortgage rates were at a historical low, and it was one of the best times since the 70’s to hold real estate with financing. Now, we’re faced with much higher rates (though they are decreasing 🎉). So, I’ve updated this post to reflect how to successfully break into real estate investing given the current associated costs.   

Today, find out whether BRRRR (Buy, Renovate, Rent, Refinance, Repeat) is the right real estate investment strategy for you, and get ideas to help you profit in today’s market. 

Here’s what you’ll learn: 

Are you intrigued? Good — you should be. Now, keep reading. 

What is the BRRRR Method? 

What is the BRRRR method in real estate?

Despite how it may sound, the BRRR strategy has nothing to do with the weather – It is an acronym that breaks down a complex real estate investment strategy into five easy-to-digest steps. 

  1. Buy – Purchase a home at a price below market value.
  2. Renovate – Make renovations to repair or upgrade the home. 
  3. Rent – Rent out the home to establish cash flow/income. 
  4. Refinance – Refinance the home for capital to purchase more property. 
  5. Repeat – Find another home to buy and repeat the process. 

Using this method, investors can purchase real estate to build out their investment portfolios. Here’s everything you need to know to implement the system for yourself. 

You might also like: Can You Pay a Mortgage with a Credit Card?

Does the BRRRR Method Work? 

BRRRR method Reddit

Yes, the buy, renovate, rent, refinance, and repeat strategy is a legitimate and lucrative way to invest in and profit from the real estate market. Many people use it to start or expand their holding portfolio or to generate cash flow.  

In fact, BRRRR has been used since before there was an acronym for it. And, if you check out Reddit or Quora, you’ll find countless anecdotes from countless investors who have successfully used the method to generate cash flow.   

However, don’t expect thousands in monthly profits for a single property. After the cost of repairs and considering vacancy rates, you are more likely to be looking at $100 to $300 per month in profits per unit or property. 

How Does the BRRRR Method Work? 

The BRRRR method works by enabling you to leverage property you purchase to pay for new real estate and grow your portfolio. 

Moreover, this strategy can be altered based on your financial situation and personal preferences. Moreover, rather than buy, renovate, rent, refinance, then repeat, you may choose to go another route. 

Some investors opt for slightly different strategies: 

  • BRRSR (buy, renovate, rent, sell, repeat) or “buy and sell”
  • BRRHR (buy, renovate, rent, hold, repeat) or “buy and hold” 

These systems can help you generate hefty returns on your investment, sometimes more profitable over time as you hold. 

Furthermore, BRRRR doesn’t only work for residential homes – You may opt to buy single or multi-family homes, but commercial real estate is another option. You might even consider investing in land that can be rented for livestock, farming, RV parking, or recreation. 

In sum, you can alter the strategy to your liking. 

BRRRR Method Risks

Is flipping houses still profitable in 2024?

As with all investment opportunities, there are perils with the BRRRR method. Costs, value, timeframes, and refinancing details are constantly fluctuating in real estate. 

The BRRRR method comes with all of the usual real estate investment risks:  

  • Financing shortfall on first property
  • Unanticipated renovation problems
  • Difficulty finding reliable contractors
  • Tenant issues or difficulty renting (factor in a 5% vacancy rate when calculating)
  • Refinancing falls short of funding next property
  • Market fluctuations
  • Interest rate changes
  • Regulatory changes
  • Construction and renovation delays
  • Overestimating after repair valueM (ARV)
  • Unexpected expenses
  • Property management challenges
  • Economic downturn
  • Liquidity risks
  • Market saturation

You need to be aware of and address these risks when implementing the BRRRR method. But, you may have a smooth experience and be impacted by none of these issues. And, the more you understand about the process, the more likely you are to succeed.

Now, let’s take a more in-depth look at each step of the process so you can learn to implement the BRRRR method process. 

Recommended: This is How to Leverage Business Credit to Transform Your Life 

This is How to Do the BRRRR Method

You already have the basic idea, but real estate investing is not a simple process. Let me give you my best advice for every step of the BRRRR process. 

Learn where to find money to purchase property, how to find the best properties, and considerations to make with renovations and renting. 

Step 1: Buy a Home at a Price Below Market Value

BRRRR method with no money

Before you start on this journey, you need to set your budget. How much money can you invest into your first property? And, this means more than 

Keep in mind that you’ll need funding for a handful of items: 

  1. The full cost of the property (for cash payment) or about 20% for a down payment (for a traditional mortgage)
  2. Closing costs and fees associated with title transfer
  3. Homeowner insurance and property taxes
  4. Renovations to the home
  5. Travel costs if purchasing out of state 
  6. An emergency fund for future home repairs 

In determining your budget, here’s where you might be able to get funds:

  • Mortgage (most traditional option)
  • Personal loans
  • Personal savings
  • Partnerships
  • Private investors
  • Seller financing
  • Business credit cards
  • Self-directed IRA withdrawal
  • Government grants or programs (rare)
  • Home Equity Investment Platforms
  • Crowdfunding platforms

If you already own property, you could consider Home Equity Line of Credit (HELOC) aka ”home equity loan”, real estate investor line of credit or a cash-out refinance. Since this is your first purchase, I’m assuming you don’t have this option. 

Carefully assess risks to choose the most suitable funding option for your BRRRR project, then research market trends to get an understanding of the current market.

BRRRR method example

You can’t typically just shop Zillow or Trulia and purchase any home to implement this strategy – The key is to purchase property at a price below market value. This means that you need to get a good deal so that you can turn a profit. 

So some home purchase situations that might help you get your foot in the door include: 

  • Auctions and government repossessions 
  • Bank foreclosures
  • Unlisted opportunities

You’ll hear stories of people purchasing homes for as little as $15K. When these anecdotes are sometimes true, any property priced this low was likely picked up at an auction. You never know what the prices will be on these properties. While this is usually where investors find the best deals, auctions are usually cash-only, so you can’t use a mortgage to bid. 

BRRRR method for beginners
Log in to your Business Credit Workshop account to access a list of five legitimate real estate auction websites.

Now, the median cost of a foreclosed home is about 15% less than market value, according to Money.com. So, while you may pick up a home for 40-50% less than the average traditional listing (this is a diamond in the rough), foreclosed homes are typically on the lower end of the value scale to start with. 

This doesn’t mean foreclosures aren’t worth looking into. Search bank websites for “Real Estate Owned (REO)” pages. Some REO properties are available on conventional listing sites like Zillow®, Trulia®, and Realtor.com®, but the comprehensive lists are more likely to be found with the banks.     

BRRRR method in California

And, you’re only going to hear about unlisted opportunities if you get out there and network. Some people think of these as unicorn investments, but they’re very real. Make friends with real estate professionals and stay open to opportunities. 

Here are the places you can look to find legitimate real estate auctions: 

[Login to your Business Credit Workshop account for a directory of legitimate real estate auction websites in the US.]

Recommended: How to Raise Money for Real Estate Investment: A Beginner’s Guide 

Step 2: Renovate to Make Repairs or Update the Home

BRRRR method calculator

Once you’ve purchased a home and it’s in your possession, it’s time to renovate. You will take a chunk of cash, say $10-20K, and put it back into the home. If the home needs repairs, start there. 

You need the house to be “habitable” according to the state’s housing standards.  And, some updates can instantly increase the value of the home, giving you a chance to rent it for a higher price. 

Here are some of the most valuable uses of your money: 

  • Increase curb appeal with landscaping
  • Fence in the yard or update the fencing
  • Upgrade the front door
  • Paint the exterior and interior
  • Add new carpet or refinish flooring
  • Update fixtures, switches, and outlets
  • Add shutters or curtains or replace windows
  • Get a new garage door 
  • Replace old countertops 

Omnicalculator® has a handy after-renovation value (ARV) calculator that might help you determine which repairs or updates can help you get the most bang for your buck. 

If the home you purchase is already in excellent condition, you could get into some eco-friendly updates like alternative energy or luxury add-ons like jacuzzi bathtubs. But, keep in mind that you will not be living in the home and the more you provide, the more you will be required to help maintain. 

And, sometimes the simplest fixes (painting the cabinets or the bathroom tile) can have the most impact on home value for the lowest cost. So, as a landlord, it’s typically best to keep it simple. 

You might also like: Best Credit Cards for House Flippers: The Ultimate Guide

Step 3: Rent Out Your Property to Generate Cash Flow 

BRRRR method book

Now, you have another decision to make: Will you act as a landlord or hire a property management company to rent your home? Depending on where you live, property management might cost $100-150 or around 10% of the monthly rental price. 

For this monthly fee, someone else will do the following tasks: 

  • Price your rent
  • Advertise your home
  • Find a tenant to live in your home
  • Protect you from lawsuits
  • Manage emergency repairs
  • Provide tax documents
  • Create income and expenditure reports
  • Perform house visits/ inspections 

You need to rent your home at a price that generates enough cash flow to enable you to easily get refinanced — you must show a profit. So, if the fees associated with outsourcing property management take up most of your cash flow, you may want to manage the home yourself. 

If you decide to take matters into your own hands, first and foremost, be sure to update yourself on the landlord-tenant laws in your state – The last thing you want is to end up in a courtroom over a dispute because you’re ill-informed. 

Here are some resources to help you learn the ropes: 

If you make it through the reading list above and you’re still interested in managing your own rentals, then you’re probably good to go. If you decide to hire out, many people consider $100 or 10% of the total home price to be a great deal with everything that goes into the job of managing property. 

Recommended: Buildium Property Management Software: An Extensive Review 

Step 4: Refinance to Get Funds for Your Next Investment

BRRRR method real estate

Now, it’s time for you to get the home refinanced so you can do it again. You want some money for a down payment on your next home. In addition, refinancing can help you out in a couple of other ways. For example, if you already have traditional financing, you may be able to move from a variable to a fixed interest rate. And, you may get rid of an existing PMI for a lower monthly payment. These details should be discussed with your mortgage broker or lender. 

If you used low or zero-interest credit cards to fund the home purchase, refinancing can give you the ability to pay them off before your interest rates spike at the end of the introductory period.   

Ultimately, to qualify for refinancing, you’ll need to be in a good financial situation and have the documents to prove it. Before you submit an application for refinancing on your rental, you need to be able to show that you have the ability to pay back the new loan. 

You will be asked to prove the following: 

  • A steady income 
  • Positive credit standing and FICO score above 620
  • At least 25% equity in the home or a 75% loan to value (LTV) ratio
  • The payment will be less than 30% of your monthly income
  • Your total household debt is less than 40% of your income

In the case that you purchase and refinance the home as a business, the lender may consider your business credit profile. 

Once it’s time to apply, you will want to gather the appropriate documents in advance for a quick and smooth process. Your lender will want to see the following: 

  • Rental lease and proof of rent deposit paid by the tenant
  • HOA agreement and payment amount (if applicable)
  • Proof of homeowner’s insurance 
  • Two months of recent pay stubs (if applicable) and bank statements
  • Investment and retirement account statements (if applicable)
  • Two years of tax returns 
  • Your current mortgage statement with payment information
  • An official payoff amount from your original lender
  • Property appraisal documentation

If you gather all of the required documents in advance, you’ll streamline the process. In the instance of any obstacles, your lender or broker will help you learn how to remedy them. 

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

Step 5: Repeat the Process! 

Now that you’ve made it this far, you’re ready to do it again. When refinancing is complete, you should have enough money to reinvest in a down payment on your second home. Rinse, repeat, then do it a third time. Eventually, you could have enough rental cash flow to live on and even retire early. 

Frequently Asked Questions

What is the 70% rule for BRRRR?

The 70% rule in BRRRR suggests that you should aim to buy a property for 70% of its after-repair value (ARV), factoring in purchase, renovation, and holding costs. This leaves room for a profitable exit.

What is the 1% rule in BRRRR?

The 1% rule is a quick guideline in BRRRR, stating that your monthly rental income should ideally be at least 1% of the property’s total cost. It helps assess whether the property has income potential.

Is BRRRR better than flipping?

It depends on your goals. BRRRR focuses on long-term wealth through rental income and appreciation, while flipping aims for quick profits by buying, renovating, and selling. Choose based on your preferences and risk tolerance.

What are the disadvantages of BRRRR?

BRRRR risks include potential financing challenges, renovation setbacks, finding reliable contractors, tenant issues, market fluctuations, and uncertainties in refinancing. Thorough research and planning are crucial.

How many times can you BRRRR in a year?

There’s no strict limit on how many times you can BRRRR in a year. It depends on factors like market conditions, financing availability, and your ability to manage multiple projects efficiently. Quality over quantity is key.

Final Thoughts

The BRRRR method is not a new strategy – it’s simply a way to break down real estate investing into a  system that’s easy to remember. As you can see, there’s a lot that goes into investing in real property, and it’s not for the faint of heart. 

There are many things that can go wrong, but that goes for all things in life. If you go into it with an optimistic mindset and the commitment to learn, real estate investing can be one of the most viable ventures you’ll ever partake in…Plus, you can start investing with business credit and lay the first brick to build your empire. 

Ready to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Secretary of State Offices Directory | Where to File a Business License

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Secretary of State Business License

You’re starting a business and you need to know how to get your business entity (sole proprietorship, partnership, LLC, or corporation) filed. What you need is the Secretary of State office that governs the state in which you live. Here, you’ll find your state’s Secretary of State office and/or equivalent filing office in the index. 

Secretary of State Offices Index

All US states and territories are listed in alphabetical order. Scroll down to your governing location and learn the next steps. 

Alabama

🌐 Alabama Secretary of State

☎️ 334-242-5324

Montgomery

P.O. Box 5616 

Montgomery, AL 36103-5616

Alaska 

🌐 Alaska Secretary of State

☎️ 907-465-2530 

Anchorage

550 W 7th Ave, Suite 1535

Anchorage, AK 99501-3587

Juneau

P.O. Box 110800

Juneau, AK 99811-0800

Arizona

🌐 Arizona Secretary of State

☎️ 602-542-4285

Phoenix

1700 W Washington St Fl 7

Phoenix AZ 85007

*The Arizona Secretary of State DOES NOT record business entity filings. Register your business with the Arizona Corporation Commission.

🌐 Arizona Corporation Commission

☎️ 602-542-3026

Phoenix

1200 W. Washington Street

Phoenix, AZ 85007

Tucson (walk-ins only)

400 W. Congress Street

Tucson, AZ 85701

Arkansas

🌐 Arkansas Secretary of State

☎️ 501-682-3409

Little Rock

1401 W. Capitol Avenue, Suite 250

Little Rock, AR 72201

California

🌐 California Secretary of State

☎️ 916-657-5448

Sacramento

1500 11th Street

Sacramento, CA 95814

Colorado

🌐 Colorado Secretary of State

☎️ 303-894-2200, Ext. 2

Denver

1700 Broadway, Suite 200

Denver, CO 80290

Connecticut

🌐 Connecticut Secretary of State

☎️ 203-566-3216

Hartford

165 Capitol Ave

Hartford, CT 06106

Delaware

🌐 Delaware Secretary of State

☎️ 302-739-4271

Dover

99 Kings Highway,

Dover, DE 19901

Wilmington

820 N. French Street,

Wilmington, DE 19801

District of Columbia (DC)

🌐 District of Columbia Secretary of State

☎️ 202-727-7278

*To do business in DC, you will need to access My DC Business.

🌐 My DC Business

☎️ 202-442-4400

Washington, DC

1100 4th St SW

Washington, DC 20024

Florida

🌐 Florida Secretary of State

☎️ 850-245-6059

Tallahassee

2415 N. Monroe Street, Suite 810

Tallahassee, FL 32303

Georgia

🌐 Georgia Secretary of State

☎️ 404-656-2817

Atlanta

2 MLK Jr. Drive, Suite 313, Floyd West Tower

Atlanta, GA 30334-1530

Guam

🌐 Guam Business One-Stop Licensing Center

☎️ 671-646-3259

Tamuning

542 N Marine Dr

Tamuning, GU 96913

Hawaii

🌐 Hawaii Department of Business Development

☎️ 808-586-2355

Honolulu

No. 1 Capitol District, 250 South Hotel Street

Honolulu, HI 96813

Idaho

🌐 Idaho Secretary of State

☎️ 208-334-2300

Boise

700 W. Jefferson St., Room E205

Boise, ID 83702

Illinois

🌐 Illinois Secretary of State

☎️ 217-782-6961

Springfield

501 S. Second St., Rm. 350

Springfield, IL 62756

Chicago

69 W. Washington St., Ste. 1240

Chicago, IL 60602

Indiana

🌐 Indiana Secretary of State

☎️ 317-234-9768

Indianapolis

302 W. Washington St, Room E018

Indianapolis, IN 46204

Iowa

🌐 Iowa Secretary of State

☎️ 888-767-8683

Des Moines

First Floor, Lucas Bldg, 321 E 12th St

Des Moines, IA 50319

Kansas

🌐 Kansas Secretary of State

☎️ 785-296-4564

Topeka

Memorial Hall, 1st Floor, 120 SW 10th Ave

Topeka, KS 66612-1594

Kentucky

🌐 Kentucky Secretary of State

☎️ 502-564-3490

Frankfort

P.O. Box 718

Frankfort, KY 40602

Louisiana

🌐 Louisiana Secretary of State

☎️ 225-925-4704

Baton Rouge

8585 Archives Ave

Baton Rouge, LA 70809

Maine

🌐 Maine Secretary of State

☎️ 207-624-7736

Augusta

101 State House Station

Augusta, Maine 04333-0101

Maryland

🌐 Maryland Secretary of State

☎️ 410-974-5534

*To do business in Maryland, you will need to apply through the Department of Assessments and Taxation BusinessExpress tool. 

🌐 Maryland Dept of Assessments and Taxation BusinessExpress 

☎️ 410-767-1350

Baltimore

301 W Preston St

Baltimore, MD 21201

Massachusetts

🌐 Massachusetts Secretary of State

☎️ 617-727-9640

Boston

McCormack Building, One Ashburton Place, 17th floor

Boston, MA 02108

Michigan

🌐 Michigan Secretary of State

☎️ 888-767-6424

*To do business in Michigan, you will need to apply through the Licensing and Regulatory Affairs (Lara) website. 

🌐 Michigan Licensing and Regulatory Affairs

☎️ 888-767-6424

Lansing

Ottawa Building, 611 W. Ottawa

Lansing, MI 48909

Minnesota

🌐 Minnesota Secretary of State

☎️ 651-296-2803

Saint Paul

60 Empire Dr., Suite 100

Saint Paul, MN 55103

Mississippi

🌐 Mississippi Secretary of State

☎️ 601-359-1633

Jackson

125 S. Congress Street

Jackson, MS 39201

Missouri

🌐 Missouri Secretary of State

☎️ 866-223-6535

Jefferson City

600 West Main Street

Jefferson City, MO 65101

Montana

🌐 Montana Secretary of State

☎️ 406-444-2034

Helena

Montana Capitol Building, Rm 260

P.O. Box 202801

Helena, MT 59620-2801

Nebraska

🌐 Nebraska Secretary of State

☎️ 402-471-2554

Lincoln

State Capitol, 1445 K St., Suite 2300

Lincoln, NE 68509

Nevada

🌐 Nevada Secretary of State

☎️ 775-684-5708

Carson City

101 N Carson St, Ste 3 

Carson City, NV 89701

New Hampshire

🌐 New Hampshire Secretary of State

☎️ 603-271-3246

Concord

107 North Main Street

Concord, NH 03301-4989

New Jersey

🌐 New Jersey Secretary of State NJBAC

☎️ 800-JERSEY-7

Trenton

P.O. Box 456

Trenton, NJ 08625

New Mexico

🌐 New Mexico Secretary of State

☎️ 505-827-3600 Ext 1

Santa Fe

325 Don Gaspar, Suite 300

Santa Fe, NM 87501

New York

🌐 New York Secretary of State

☎️ 518-473-2492

Albany

One Commerce Plaza, 99 Washington Ave

Albany, NY 12231-0001

New York City

123 William St

New York, NY 10038-3804

North Carolina

🌐 North Carolina Secretary of State

☎️ 919-814-5400

Raleigh

2 South Salisbury St.

Raleigh, NC 27601-2903

North Dakota

🌐 North Dakota Secretary of State

☎️ 701-328-2900

Bismarck

600 E Boulevard Avenue Dept 108

Bismarck ND 58505-0500

Ohio

🌐 Ohio Secretary of State

☎️ 614-466-3910

Columbus

22 North Fourth Street

Columbus, Ohio 43215

Oklahoma

🌐 Oklahoma Secretary of State

☎️ 405-521-3912

Oklahoma City

421 N.W. 13th, Suite 210

Oklahoma City, OK 73103

Oregon

🌐 Oregon Secretary of State

☎️ 503-986-2200

Salem

255 Capitol St. NE, Suite 151

Salem OR 97310

Pennsylvania

🌐 Pennsylvania Secretary of State

☎️ 717-787-1057

Harrisburg

401 North Street, 206 North Office Building

Harrisburg, PA 17120

Puerto Rico 

🌐 Puerto Rico Secretary of State

☎️ 787-722-2121

San Juan

Calle San José

San Juan, 00901, Puerto Rico

Rhode Island

🌐 Rhode Island Secretary of State

☎️ 401-222-3040

Providence

148 West River Street

Providence, RI 02904-2615

South Carolina

🌐 South Carolina Secretary of State

☎️ 803-734-2158

Columbia

1205 Pendleton St, Ste 525

Columbia, SC 29201

South Dakota

🌐 South Dakota Secretary of State

☎️ 605-773-4845

Pierre

215 E Prospect Ave

Pierre, SD 57501-5070

Tennessee

🌐 Tennessee Secretary of State

☎️ 615-741-2286

Nashville

312 Rosa L. Parks Ave, Snodgrass Tower, 3rd Floor

Nashville, TN 37243

Texas

🌐 Texas Secretary of State

☎️ 512-463-5555

Austin

1019 Brazos St

Austin, TX 78701

Utah

🌐 Utah Secretary of State Division of Corporations

☎️ 801-530-4849

Salt Lake City

160 E 300 S, 1st Floor

Salt Lake City Utah 84111

Vermont

🌐 Vermont Secretary of State

☎️ 802-828-2386

Montpelier

128 State Street

Montpelier, VT 05633-1104

Virgin Islands

🌐 Virgin Islands Secretary of State

☎️ 340-773-6449

St Croix

1131 King St, Ste 101

Christiansted, St. Croix, Virgin Islands 00820

Virginia

🌐 Commonwealth of Virginia State Corporation Commission

☎️ 804-371-9733

Richmond

1300 E. Main St.

Richmond, Virginia 23219

Washington

🌐 Washington Secretary of State

☎️ 360-725-0377

Olympia

PO BOX 40234

Olympia, WA 98504-0234

West Virginia

🌐 West Virginia Secretary of State

☎️ 304-558-8000

Charleston

1615 East Washington St

Charleston, WV 25311-2126

Wisconsin

🌐 Wisconsin Secretary of State

☎️ 608-250-4606

Madison

State Capitol B41W

Madison, WI 53703

Wyoming

🌐 Wyoming Secretary of State

☎️ 307-777-7311

Madison

122 W 25th St, Ste 101

Cheyenne, WY 82002-0020

How a Trucking Company in Snellville, GA Got Over $200K in Business Credit

By

Trucking Business Funding

A2B Trucking Leveraged Private Credit Coaching to Substantially Increase Company Vitality

  • Obtained $204.5K in Business Credit
  • Saw Personal FICO Score Jump to 830 
  • Stopped Relying on Personal Credit Cards
Sign Up Now

A2B Trucking, LLC 

Snellville, GA, United States

678.224.9434

The Challenge

Gambling with cash flow and limited by personal credit options

Previous Business Funding

Personal Credit Cards & Sweat Equity

The Solution

Enlist Business Credit Workshop’s one-on-one coaching to learn how to use business credit to scale the company

Sign Up Now
Get the Study

A2B Trucking Overview

A2B Trucking is a contract truck hauling company based in Snellville, Georgia. The company was established in 2015 by founder, Brendan Purnell. 

The company has ten trucks, ten drivers, Purnell’s fiance doing administrative work, and Purnell himself managing operations. They are currently open to new owner-operators that want to lease onto the company, which is how Purnell originally got his start. 

Personal credit is limited and cash flow is a gamble. Make sure you have adequate capital because, in the blink of an eye, you can go belly-up if you are under-capitalized.”


Brendan Purnell | Owner of A2B Trucking, LLC
678.224.9434

Heavy Reliance on Personal Credit and Cash Flow Created Limitations on Business Growth

While A2B trucking was not on a downward spiral and under no notable catastrophes, the capital options Purnell used to fund his operations were limited by his personal credit profile and unpredictable cash flow.  

Purnell sought to scale and grow his company. And, in his words, “personal credit is limited and cash flow is a gamble,” in business. So, he was actively looking for a way to get more funding and take the next steps toward company growth. 

Hacked Business Credit With the Help of One-On-One Coaching from Business Credit Workshop

In August 2019, while researching business finance topics, Purnell came across one of Joe Lawrence’s Business Credit Workshop videos. Unlike others he had seen, the video did not look scripted and didn’t seem to be created using actors. In Purnell’s words, Joe looked “approachable” and “relatable.” 

Moved by Joe’s vulnerability in telling his own personal story and sharing the courage to jump out there to pursue his dream, Purnell reached out to Joe to discuss the possibility of private coaching. Their coaching started that same month. 

Purnell While the opportunity started out on a calculated three-month trial basis. Joseph’s confidence convinced Purnell that the Business Credit Workshop was a well-oiled machine that could help A2B Trucking get the funding they needed. 

The Results

As of February 2020, after just six months working the program that Joseph guided, Purnell and A2B Trucking had seen substantial, measurable results. 

  • A2B Trucking obtained $204,500 in business credit
  • Purnell’s personal FICO credit score jumped to 830

For A2B Trucking, Business Credit Workshop’s private coaching has lasted beyond the three-month experimental period and is ongoing. 

Plus, there have been a couple of unexpected results. First, Purnell has been able to network with Joe’s connections to expand his business reach. And, he is surprised and fulfilled by the impact that his testimony has had to benefit others who are in a similar position that he was starting out. 

Dive in today and experience the improvements that knowing how to leverage a business credit profile can make.  

Sign Up for Business Credit Workshop
Inquire About Private Coaching

How to Start a Trucking Company From Start to Finish

By

How to Start a Trucking Company

Launch a Trucking Company, Even When You Have No Money

A trucking company is a lucrative venture that requires a substantial amount of startup funding. And, while many people would like to get into it, they have no idea where to start — especially when they have no money to launch.

Here, you’ll learn everything you need to start a trucking company, even when your initial resources are limited. 

  • Projected startup costs based on the number of trucks
  • A step-by-step action plan for getting off the ground
  • How to raise funding when starting from ground zero

Now, let’s look at what it takes and you can decide if you still want to start a trucking company (It’s not for the faint of heart, but you can learn how to maximize your resources). 

How Much Does it Cost to Start a Trucking Company? 

Depending on the number of trucks you want on the road, where you plan for them to drive, and the other personalized details of your business, it can cost a minimum of $27,357 to $406,979 to launch a trucking company.  

How Much Does it Cost to Start a Trucking Company
*An LLC is probably a more cautious business structure choice for a trucking company but is more expensive. For the purpose of showing minimum costs, I’ve included a typical sole proprietorship cost. 
**Single BOC-3 filing cost is minimum for an intrastate operation. 
***Fuel tax cost based on 12,000 miles per truck, the average long-haul truck fuel economy of 5.5 miles per gallon,  at the national average IFTA tax of $0.5538 per gallon (PFS). 
****Based on the average US diesel price of $2.956 (EIA), the average long-haul truck fuel economy of 5.5 miles per gallon (ICCT), and 12,000 miles of driving.
*****Based on average US annual truck driver salary of $46,380 (BLS). 

Of course, these costs can vary wildly based on many different factors. So, you’ll need a budget and a plan. Hopefully, that’s where I can help. Step-by-step, I’ve outlined how to start a small trucking company, even if you have no money to put down. 

Before We Start, Let’s Get an Overview of Your Plan

You’ll need to ask yourself a few crucial questions before you get started. Don’t worry, though. They’re easy to answer and you can always change your mind later as your company grows. 

Where will you base your operations and where will you haul? 

Your base location and the states you will drive through are crucial to know before you launch. If you will never leave your state, you can get by without some of the licensing and costs associated with hauling across state lines. 

For example, with interstate freight, hauling across state lines, you will need motor carrier authority or an MC number, which we’ll cover later. And, for intrastate freight, hauling only within your base state, there are typically fewer requirements. 

So, if your operations are isolated to your home state, you can skip over the MC number section for now. You can acquire authority later if you choose to expand your operations. 

Will you drive for your company? 

If you plan to drive for your trucking company you will need more licensing. For a one-truck operation, driving could save you on the cost of an employee salary or payment to a contractor. However, you will need a commercial driver’s license (CDL), which takes some work.

While a trucking company owner is not required to maintain a CDL, each driver is. This type of license can be acquired through your state DMV, and each of your drivers is required to keep a valid, updated CDL at all times. 

Will you hire or contract your drivers?

While there is no rule to how you set up your operations, you need to consider whether you would rather hire employees or work with contractors. Either way, one of the most difficult parts of your job, when you try to scale your business, will be to build and maintain relationships with drivers who are qualified. 

Look for drivers with the following qualities: 

  • Licensed 
  • Punctual
  • Good temperament
  • Careful with equipment

The paperwork associated with contractors will typically come with less hassle than employees. Yet, the potential to provide benefits to employees can sometimes nurture ongoing and profitable relationships. 

Now, let’s look at the steps you need to take to start a trucking company. 

Step 1: Acquire a Business License

The first step to take is to acquire your business license. And, you will have options. 

In the US, there are four types of business structures/entities to choose from. 

  1. Sole proprietorship – an unincorporated business owned by one person who has sole rights to business profits and liabilities. 
  2. Partnership – an unincorporated business owned by two or more people who share equal rights and responsibilities to business profits and liabilities. 
  3. Limited Liability Company (LLC) – a business that includes elements of a sole proprietorship, partnership, and corporation in which the owners are not personally liable for the company’s debts or liabilities. 
  4. Corporation – a business that is legally separate and distinct from its owners who act as representatives for the company. A corporation’s owners are not personally liable for the company’s debts or liabilities. 

I usually suggest that trucking companies go with an LLC because it gives business owners many of the same protections of a corporation with the ease of a sole proprietorship or partnership. You may be able to have your licensing fees paid by leveraging an economic development grant. 

To acquire business licensing, go to your state’s Secretary of State website for more information.

Resources: 

Step 2: Get Your Commercial Driver’s License (CDL)

If you will be driving, you will need to obtain a CDL, which is a required license for anyone driving commercial vehicles like tractor-trailers, semi-trucks, dump trucks, and passenger buses. 

To obtain a CDL requires education, exams, and fees. There are some states that will allow you to obtain a CDL without schooling, but you will still need to pass an exam.

The courses offered are often 5-7 days and sometimes 60-90 days. The longer courses can cost upwards of $1,200, but you can get these courses paid for in a couple of different ways. 

  1. Apply for an education grant through the federal government.
  2. Get a trucking company to train you in exchange for a contract to work for them for a certain number of months at a low compensation.

So, be sure to check into the financial aid programs offered by your local community college and trucking companies in your state to obtain a CDL. 

Resources: 

Step 3: Apply for an Employer Identification Number (EIN)

After your business is licensed, you’ll need to apply for an Employee Identification Number (EIN). An EIN is a free, nine-digit federal identification number assigned by the IRS for business taxes and reporting. 

Your EIN will be used to file taxes, report business income and expenses, and apply for and establish credit on behalf of your company.

Resource: IRS Free Online EIN Application 

Step 4: Sign Up for a DUNS™ Number

A DUNS™ or D&B number is a free, nine-digit business identification number assigned by Dun & Bradstreet’s business credit reporting agency to establish your company’s credit profile.

Your DUNS™ number will be used to apply for and establish credit on behalf of your company.  

Resources: 

Step 5: Hack Your Business Credit Profile

Funded businesses achieve 2X more employment growth and 30% more revenue growth than businesses that do not have adequate capital at launch, according to Kauffman. When you learn how to hack your business credit profile, you can obtain up to $100K in funding in as quickly as a month. 

Brendan Purnell, A2B Trucking LLC

Personal credit is limited and cash flow is a gamble. Make sure you have adequate capital because, in the blink of an eye, you can go belly-up if you are under-capitalized.

Brendan Purnell, Founder of A2B Trucking
678.224.9434

Brendan Purnell, the owner of A2B Trucking in Snellville, Georgia, was able to obtain over $200K in business credit over the course of six months. The financing he obtained substantially impacted the vitality of his company. 

He’s now operating a business with 10 trucks and a team of 12, including 10 contracted drivers, Purnell’s fiance doing administrative work, and himself. And, A2B is in a position to let others lease into the trucking company for a period of months to learn the ropes. 

A strong credit profile isn’t the same thing as bad debt. And, if you’re serious about building a successful company, more capital can help you achieve your goals. 

Resources: 

Step 6: Obtain Your Equipment 

Once business credit is established, you can start truck shopping. Even if you aren’t in a position to qualify for a vehicle loan, there may be other ways to do so. 

For example, you may be able to purchase a used truck (very inexpensively) on eBay with a credit card. 

Buy a used semi truck on eBay

While it’s less likely that you’ll actually be able to drive something that costs nothing, you never know what you might find for free on Craigslist. 

Free semi truck on Craigslist

But, while these options are available, I wouldn’t necessarily recommend them. Your trucks should be a long-term investment. I’ve heard a rumor that there were hundreds of trucking companies that went under last year. So, it may be the perfect time to get a rig at liquidation prices. 

Once your business credit is established and you can look more closely at your resources, you’ll be able to make more informed and personalized decisions about how to buy fleet. 

Resource: 5 Tips for New Owner Operators Buying Your First Truck

Step 7: Acquire USDOT & MC Numbers

Next, you will need your USDOT and/or MC numbers issued. 

A USDOT or DOT number is a license number required for all commercial vehicles that weigh a certain amount, transport people or property, and operate between state lines. A DOT number is free. 

An MC number is a license that enables trucking companies to legally carry regulated commodities (anything that has been changed from its natural state) across state lines. An MC number is $300. If you need help paying for the license, an economic development grant may help cover the cost. 

Both licenses are issued by and can be obtained from the Federal Motor Carrier Safety Administration (FMCSA). 

Resource: FMCSA Registration Wizard

Step 8: Activate Your MC Authority

After registering with FMCSA for your DOT and MC numbers, you will need to activate your authority. This requires two parts

  1. Submit Proof of Liability Insurance – proof of commercial auto insurance coverage needed within 90-days of applying for MC authority. 
  2. BOC-3 Filing – designates processing agents to act on behalf of your processing company in each state in which you will operate. 

A processing agent is a person who can receive legal documents for your company in the case of a lawsuit. The cost for the BOC-3 filing starts at about $20. Depending on the agent, you may be able to bypass the cost. Ask your agent if their service has any type of fee waivers. 

Resource: FMCSA Process Agent Directory

Step 9: Get Cargo Insurance 

Cargo insurance provides coverage for freight. While you are not legally required to maintain cargo insurance, it will be required by most brokers and shippers. You will need to submit proof that you carry this type of coverage before you can get hired to haul. 

As with all types of insurance, you should get multiple quotes for cargo coverage and choose the best option. If you already know the brokers and shippers you will work with, ask for recommendations from them and find out what their coverage requirements are.  

Resource: Cargo Insurance: What is it, What are the Types, and Do I Need it? 

Step 10: Obtain Your Unified Carrier Registration (UCR) 

A UCR is a required federal directory of carriers, that replaced the Single State Registration System (SSRS). The collected fees are used to support state safety training and USDOT officer training. 

Any trucking company with interstate operations must register, even if based in a state that does not participate. Non-Participating states include Arizona, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Vermont, Wyoming, and the District of Columbia.

Fees start at $60 for a company with up to two trucks, plus a $75 application fee. For help paying your UCR fees, an economic development grant may help you out. 

Resource: UCR Online Registration

Step 11: Apply for Apportioned License Plates 

Apportioned license plates distribute licensing fees equally between each state a truck passes through. And, they are required for all commercial vehicles that travel between states and weigh 26,000 lbs or more. 

Apportioned License Plates
Apportioned Oregon License Plate from 2018

Apportioned plates are governed by the International Registration Plan Organization (IRP). And, you can obtain more information about getting your plate(s) on the IRP website. 

Resource: IRP Organization’s Website 

Step 12: Register for Your Quarterly Fuel Taxes 

IFTA Decal
IFTA Decal from 2013

Your quarterly fuel taxes are dictated by the International Fuel Tax Agreement (IFTA) and the International Fuel Tax Association. You will need to register with and order decals from your state agency that administers IFTA regulations. All trucks must have an updated IFTA decal to be in compliance. 

Resource: US State Website Directory 

Step 13: Research Other State-Specific Registrations

Do the research within your state and find out which state-specific registrations may be required. For example, depending on where you are located, you may need to apply for intrastate authority. And, Kentucky, New Mexico, New York, and Oregon require a weight-distance tax. Contact your local DMV or state department for more information. 

Final Thoughts

Now that you have the process outlined, you’re ready to launch. Just start networking to find your next job or driver and get on the road! And, if you need help getting financed from zero, find out how to get $100K in business credit without walking into a bank.

We Studied Suntrust Business Credit Cards & Here’s What We Found…

By

Suntrust Business Credit Card Review

When you build business credit, you need to be in the know about all of your options. And, if you’re an existing Suntrust Bank member, you’ve probably wondered about the brands’ business credit cards. If you’re not, you may have seen mention of Suntrust’s cash rewards cards online. Get all of your questions answered here. 

First, you can learn about Suntrust Bank and see a summary of each business card they offer. Then, see a thorough exploration of both cards. And, finally, read answers to some of the most frequently asked questions. When you’re finished reading, you should be able to determine if a Suntrust business credit card is right for you.  

What is Suntrust Bank (Soon to be Truist)? 

Suntrust Bank is a trusted financial institution with 1,400+ branches across the United States. The bank is currently undergoing a merger with BB&T, which will result in a new brand: Truist. 

Both existing brands have disclosed that members should continue banking as usual. They promise to make the transition seamless for their members. And, new credit applications should be processed as usual. 

What is a Suntrust Business Credit Card? 

Suntrust business credit cards are popular funding options for companies interested in building their credit or accessing multiple lines of credit for working capital/investments. The brand offers a cash rewards card for businesses and a card designed specifically for non-profits. 

  • Suntrust business credit card rewards include cash back, loyalty cash, automatic rebates, and flexible spending. 
  • And, non-profit cardholders can leverage rebates on eligible spending. 

Suntrust Business Credit Cards Comparison

Now, let’s take a look at a summary of the advantages of business credit cards available through Suntrust Bank.

What do Suntrust’s Business Cards Have in Common? 

First of all, Suntrust credit cards for businesses and non-profits have a 0% introductory rate for the first 12 months with no annual fee. So, if you have your card paid off within the first year, you won’t owe additional costs for the funding. 

Next, both cards offer the benefits of the Mastercard EasySavings® Program. Through this program, you can leverage notable savings for your business on hotels, restaurants, travel, business services, fuel, and maintenance partners. Earn a 4% rebate on spending at more than 18K restaurants and 5K hotels worldwide. 

Furthermore, both cards offer Zero Liability, which protects cardholders from unauthorized transactions.  

Exclusive Suntrust Business Credit Card Rewards 

The business credit card offers exclusive cash rewards. Cardholders can redeem cash rewards earned in the form of cash deposits into your checking or savings accounts or redeem toward a statement credit. Alternatively, you can opt to use your rewards to purchase gift cards, merchandise, or travel. 

And, Suntrust rewards do not expire, as long as your account/credit line is open. And, there is no spending limit. So, you can let your rewards build as long as you like before you redeem. However, rewards earned prior to 2012 will expire five years from the date they were earned.  

For the first 12 months after opening your account, you will receive 5% cash back on each qualifying purchase for the first $2,000 spent each billing period. After the first year, you will continue to earn 3% cash rewards on eligible spending. And, Purchases made outside of Suntrust’s partner network will earn 1% cash back.

So, with a Suntrust business card, you’ll earn 1-5% cash back on purchases that you can redeem at any time. 

Wait.. there’s more. Suntrust banking customers can leverage added benefits from this card. When you deposit your cash rewards into a Suntrust checking or savings account, you can get an additional 10-25% bonus. 

If you deposit $100 in cash rewards into your Suntrust business checking, savings, or money market account, your actual earnings will total $110. And, if you deposit $100 in rewards into a SunTrust Business Advantage Plus Demand Deposit Account (DDA), you’ll earn $125 in all. 

This credit card provides the most benefit for existing Suntrust banking members who use their card often. 

Unfortunately, the non-profit card doesn’t come with the same rewards as the business card. But, the interest rate on the card is competitive and users can take advantage of Mastercard’s EasySavings® program. 

Suntrust Business Credit Card Requirements:

What credit score do you need to get a Suntrust credit card? Well, it better be excellent. After checking in with MyFico forums, it looks like Suntrust only extends credit to businesses with an Equifax FICO 8 score above 700. 

And, when cardholders use their card responsibly, their credit limit seems to go up after about a year with the company. 

How does the Suntrust Credit Program Work? 

Here are some more details about what you should expect from the Suntrust credit program, should you be approved for the business card. 

Does Suntrust charge for a cash advance? 

Yes, as with most credit cards, Suntrust offers cash advances for a fee. Initially, when your credit line is approved through Suntrust, you will be assigned a cash advance limit. Your advance limit may or may not fluctuate with your card’s spending limit. 

And, according to the card’s terms and conditions, the initial fee will be the greater of $5 or 3% of the amount of the advance. And, the APR on a cash advance, which will begin to accrue immediately, will be 24.74%. 

So, upfront, on a $500 cash advance, you will pay $15. Then, you’ll owe interest on the amount until the total is paid. 

What is the typical APR for a business credit card with Suntrust? 

As of January 2020 and also according to the card’s terms and conditions, you can expect your interest rate to vary. The annual interest rate that will kick in after your promotional spending period will be between 13.74 and 20.74%. 

According to the Bureau of Consumer Financial Protection, in an updated report published last year, the average credit card annual percentage rate (APR) for private label credit cards is 26.4%, so the Suntrust offer is competitive. 

How often can you ask for a credit line increase on a Suntrust business credit card?

Suntrust offers most Suntrust business card holders a spending limit increase after about a year of responsible payment activity. So, you can wait for the 12-month mark, or you can take matters into your own hands at any time by calling Suntrust’s customer service department and requesting one. 

What is a Suntrust promo code? 

From time to time, Suntrust will offer members exclusive promotional bonuses — for example, “Earn $200 when you open a new checking account.” 

These promo codes may be sent out via email and are sometimes available on the Suntrust Bank website. To leverage a promo code, you can use the code online when you take advantage of the offer or take the code into a branch with you. 

Related Answers

Does Suntrust have credit cards/does Suntrust offer credit?

Yes. Suntrust Bank (soon to be Truist) offers credit for both individuals and businesses to leverage. 

How much does it cost to open a Suntrust account?

A Suntrust checking account is free to open, but a $100 minimum deposit is required. Your $7 Monthly maintenance fee can be waived with eligible account activity and for students for up to 5 years. 

Is Suntrust Bank going out of business?

No, Suntrust Bank is a trusted financial institution with 1400+ branches across the United States. The idea that they are going out of business comes from the company’s current merger with BB&T.

How do I increase my credit limit with Suntrust?

Suntrust will automatically increase your credit limit with responsible payment activity. To manually request a credit increase, call 1-800-477-9702.

Can I pay my Suntrust credit card online?

Yes. Suntrust offers online expense management tools including online credit card payments. 

What is Suntrust bill pay?

Suntrust bill pay is an online bill payment solution that Suntrust Bank offers their members as a convenience. 

How does Suntrust cash back work?

When you use your Suntrust cash rewards card to make purchases, you can redeem earned rewards by depositing into you checking or savings account or using them to apply toward statement credit. 

How do you redeem Suntrust rewards?

Login to your Suntrust rewards account and find the ‘Cash’ tab in the navigation menu. Then, select your method of redemption. Choose the amount of rewards you would like to redeem. Your rewards will be automatically added to the account you have selected. 

Do Suntrust cash rewards expire?

No, Suntrust cash rewards do not expire as long as your account is open. 

Final Thoughts

Suntrust offers a great business credit card with a 0% promotional interest rate that lasts 12 months. Thereafter, the APR is competitive. The cashback rewards during this period are impressive. And, Suntrust Bank members can take advantage of even more business savings. All in all, when you’re building business credit, this is an excellent card to aim for. 

If you want to build your business credit profile and access more small business lines of credit without high origination fees, start here: learn how to obtain business credit in 30 days.

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