This is the 2nd in a three part series. If you haven’t read the first article read it here.
The second type of UBL’s are Business Credit Cards.Business Credit Cards have been increasing in popularity over the last couple years. In fact, Inc Magazine has reported about a study that was conducted for the American Bankers Association by Keybridge Research in which Business Credit Card useage has created hundreds of thousands of jobs directly
Previously, I did a 4-part Blog series where I went into some depth about the 4 parts of a well-planned Business Credit Card strategy. When done properly, you’ll not only have access to lenders you probably are unaware of but you’ll also get larger unsecured business credit lines and you want to be sure you know some of the better strategies for how to pull the funds out of the business credit cards. Think about it like this: let’s pretend you’re a real estate investor or entrepreneur. It’s cool that you have some lines of credit on Business Credit Cards but you can’t buy a property with a Visa right? Of course not. Plus, you don’t want to take cash advances if you don’t have to. With cash advances you not only pay higher rates but you normally cannot access the entire credit line either. There’s a better way…make sure you learn from someone who is an authority and not some guy who knows about this “in theory.” There’s nothing that drives me crazy more than some guy who knows a little more than the average person and he’s trying to sell you or consult with you on topics that he’s really not an expert or an authority in.
There’s something else I want to point out to you about this kind of financing. Number one, don’t get it if you’re not really in business. Ever known anyone like that? It’s like when I take my son to the pool. He will jump right in and go for it. Me? Well, I put my toe in the water and then I walk around the pool a few times. I’m excited for my son because he’s having fun and he’s taking it all in but I often settle for just sitting on the edge and putting my feet in the water. It does keep me cool and I can watch my son have all the fun but I’m certainly not committed like my son is. So don’t be as “half-committed” to your business as I am to swimming in the pool. Number two, assuming that you’re committed to your business, get your lines of credit BEFORE you need them. Let’s say that one again. Get your business lines of credit BEFORE you need them. The best and savviest (if that’s a word) business owners have what’s called liquidity. This normally means that they have their own liquid funds plus they have access to capital so they can move quickly as they see opportunities and as needs arise. Donald Trump has got a few bucks in the bank…that’s probably safe to say. In fact, he could probably self fund some of his own deals. However, do you think he’s using any of his own money to finance his projects? I don’t think so either and he has access to large amounts of capital so he can almost always take on the next good deal. This should be part of your strategy. Get the capital before you need it and get more than you think you will need. It’s amazing what opportunities come your way when you have the funds to take advantage of them.
The third and final type of UBL is…(you know the routine…find out here)…