In this brief instructional exchange, Speaker A explains a practical method for entrepreneurs with little or no business revenue to obtain substantial funding. The approach hinges on leveraging a strong personal credit profile and existing relationships with banks. By personally guaranteeing or co‑signing for the new business, the entrepreneur convinces banks to extend credit based on personal creditworthiness. Speaker A demonstrates a repeatable strategy: secure a credit line from one bank, then replicate the same personal‑guarantee script with additional banks to accumulate multiple credit lines, ultimately achieving $50,000‑$60,000 in funding for a startup. The dialogue emphasizes the importance of personal credit scores, long‑standing credit cards, and maintaining good payment history as the foundation for this funding model.
That one little thing makes a difference in the amount of credit card limit that you do get. Little tip right there. You know what I'm saying?
So let me ask you another one. So what's the best way for someone to get business funding even if they're just starting out?
So this, a lot of my new clients or mentees that come to me, they're just starting out and that's okay. They have no revenue for their business. So here's how you get money. You need to have good credit., right? So like I was giving you an example earlier, Herman, the bank knows Herman, Chase knows Herman because I have a relationship with them. I put my deposits in there. They don't know Bellasloan Enterprises. So what do I do? I co-sign, or what we call in the business world, we personally guarantee the business. So they're going to be like, all right, Herman, you know Bellasloan? Yeah, I know Bellasloan. Bellasloan only 6 months old, year old, it's a baby. It's not really making any revenue, but you could look at my credit. You see I have a 700 credit score. You see that I've had a couple of credit cards in my life. I've never been late on them. The limits are high, right? I got like a $5,000, $10,000 credit card. They're 3, 4 years old. All right, Herm, we see how you have been responsible with your personal credit. We're going to allow you to get money in your business name. We'll give you a $20,000, $25,000, $30,000 credit card. So now that I've done that with one bank, guess what I do next, CJ? I go to another bank, get another $10,000, $20,000, $30,000. Go to a third bank, get another $10,000, $30,000. This is how when I post online, yo, I got my client $50,000, $60,000, they like, how's that possible? I know how to go to different banks, give the same script, even though this is a startup company, because me or my client got good credit.