Transcription
Hey guys, it's JP. So, my team and I recently got a dead LLC 143,000 in 0% business credit and I want to share with you exactly what we did step-by-step to make that happen. Just to prove to you that it's not luck.
Getting 100 to 150,000 or more in 0% business credit really does just come down to the correct strategy. So, I want to share with you the identical strategy we used with this specific client um to make it happen for them pretty quickly and uh get some pretty high limit.
So, the first place I want to start this off at is this client when they first came in um he was very skeptical. He had been burned by a funding company before. So, when it came to getting 0% business credit, he was very hesitant that it was actually going to work. Um so, once we got him comfortable and we got him in and we started digging into the strategy, um pretty much the first thing I do whenever we bring in a client and we're analyzing them is I want to see are we missing anything or like where are Where's an area that we can go with that funding round to get an advantage when it comes to getting 0% business credit? And whenever I was looking at his credit report, everything from a credit perspective was just fine. He had multiple credit cards. He had some credit cards with a 10,000 plus limit. His score was right around 800. Um he had other debt products. So, he had also an auto loan. So, from a credit standpoint, everything was good. But from a company standpoint, I wasn't too happy with what we were dealing with and I wanted to see if there was any avenue that we could take to make that a little bit more efficient and we could get more capital.
What I mean is the entity that he wanted to fund um was number one a trucking LLC and then number two, it was very young. It was around a month or two old. Now, can you fund entities that are a month or two old or even three weeks old? Absolutely. You 100% can. But the limits are almost always going to be lower than if it's an aged entity that's 3 to 5 years old. So what I like to do whenever I'm analyzing a funding plan for a client is I like to see is there any way that we can get associated with an older LLC? And normally there's two ways you can do that. You can either find one that's dead, no one's really using, that has age, and you just add yourself to the LLC, you give yourself 25% ownership or more, and then that adds you to that aged entity and you can run it through funding. Or sometimes people just have entities that are older that they had a long time ago that are maybe dead. Um they're not doing anything with them. And then you can just basically reinstate them and um run those through funding. And that is the exact case that happened here with this client. He had the two-month-old entity, the trucking LLC, but he also had another entity that was 5 years old that he had just let die with the Secretary of State. So as soon as I saw that, I was like, "Ah, right there. That's what we were looking for. This is what we need to do."
So what I did was I had him contact the Secretary of State. He brought it paid whatever annual fees he needed to pay to get it active. And then as soon as the entity was active, I was like, "Okay, sweet. Now we're dealing with an 800 credit score and we're dealing with an entity that is 5 years old." And honestly, from the outside looking in, if that is the scenario, that's a 10 out of 10 scenario. 5-plus year old entity and an 800 credit score. So at that point I knew that we were in a good position to really start the funding round.
So where I'm going to kick this off is another thing that I like to do whenever we are getting ready to run a client through funding is one of I believe one of the major hacks that you can do when it comes to getting 0% business credit is setting up business accounts with these banks and then putting 10K plus into the account. So whenever I spoke to this client, I asked him, you know, do you have the money to drop into the account? And the ultimate answer was no, he did not have that much money to drop into two accounts. And the two accounts that I wanted to put cash into was Chase and US Bank. And I wanted to do them at the around the same time just so we could hit both of those banks real close together and we could shrink down the time frame of getting, you know, over 100k in 0% business credit.
So, whenever I asked him, you know, do you have the money? He said no. I already I went to my number one right now for getting access to that capital, which is uh SoFi. So, what I did is we went to SoFi, we ran through a SoFi will do a soft pull to see if you're pre-approved. They pre-approved him for, I believe, 50k. Um we didn't need that much. So, what we ended up doing was taking 30k. Uh but we got it completely no doc. Um and after we got approved for SoFi, by the way, he SoFi the funds were used for two reasons. Um whenever we got the SoFi loan, he used those funds to bring uh to bring his LLC active again. And then he also used those funds to distribute into the bank account. So, he put I think he took maybe like a couple grand or so um to be able to get the LLC active and pay some other expenses. And then we split the remainder of the money. I believe it was like 25k between the two banks. So, we put 12 and 1/2 in Chase and then we put 12.5 in US Bank.
So, once we did that, now the waiting game happens. Um cuz I you don't want to put money into the business checking account and then immediately apply. You want to wait and give it some time. So, we ended up waiting, I believe it was somewhere around 13 to 14 days. And once those 13-14 uh days were up, the first bank that we decided to hit, which you probably guessed by now, uh was Chase. So, the first card that we applied for is the Chase Chase Chase Ink Business Unlimited. Um whenever we applied for this card, um we decided not to go through with a relationship manager. He did use a relationship manager to set up the business checking account, but I prefer if we can to run applications online with Chase just because it's a lot more efficient and it's a little bit quicker of a process. Um so we actually ended up just applying for the Chase Ink Business Unlimited online and the application went into pending.
Now, a lot of times when an application goes into pending, people will just let go of the application and just wait cuz a lot of times they'll send you an email or something will pop up on the screen and it's like, "Okay, well you need to uh wait, you know, whatever, 4 to 5 business days to hear back from us." I never wait those days ever because a lot of times the algorithm just couldn't verify something on the application or it just something tripped it and it sends it into pending and a lot of times those applications will go into pending and then they will not come out on the other side with an approval. That's just been my experience. So as soon as that application went into pending, we had him call in and ask them basically why the application went into pending and can he provide any information to help push it through. And the reason we do this is because when he called in, it was a super super easy verification issue. I don't remember exactly what it was so I don't want to tell you wrong here, but I believe it was something to do with his address because since we just reinstated the LLC, the address on the Secretary of State I believe was outdated. Um so it was just there was a little bit of an address mismatch, but he was able to just provide, "Yeah, that's the address. Um yeah, we're we're good to go." Just a verbal confirmation. And after that verbal confirmation, um the person went was like, "Okay, awesome. You're approved. You were approved for 45K." And I mean, 45K approval through an online application with Chase is pretty significant. So not only was he falling out of his chair, I mean, we about fell out of our chairs as well just because like that is a pretty high approval, especially since this LLC has been dead for 2 and 1/2 years. We reinstated it right before we did this, so that was pretty nuts.
Um but he got 45k, but since we got 45k on the Chase Ink Business Unlimited, that's means that you have the green light immediately to apply for the Chase Ink Business Cash. We just we do it immediately and we do it online as well. So, as soon as that approval came through, we were riding that high, we reapplied at Chase, we used the same exact data points from the first application. Remember, you want to make sure that you put the same information on the second application as you did the first. And then we applied for the second card and it went into pending. We had him call the same exact number. When he got on the phone, um when he got on the phone with the person, it was the same exact issue. There was the address mismatch. He needed to um verbally just say, "Yes, this is my home address. This is the address I want to use for the business." And she, I believe it was like a 30-second wait, came back, "Congratulations, you were approved for 47k." I mean, nuts. Almost 100k through online applications at Chase alone. 92,000 in 0% just between those two cards.
Here's the big point thing I want to like focus on here. There's I guess there's a lot to unpack, but if we would have let these applications just live in pending, there's a chance that we could have gotten a big fat goose egg from Chase because those verification issues wouldn't have been solved without the call-in and and the the verification that we did. So, he could There's a potential that those applications at Chase could have been a zero if we wouldn't have called in. So, make sure if your applications are declined or if they are if they go into pending, call in. Try If it's declined, try to get it reconsidered. If it goes into pending, see what they need to verify and what you can give to them. It's almost always a simple verification like ID, address, something like that just to ensure it is you submitting the application, but just like that we have 30k from SoFi and then we have 92,000 at Chase.
So at this point, you know, the client's happy, we're very happy because we're already we we've applied barely anywhere. Um obviously SoFi is not 0%, but if you're counting SoFi into the mix, we're already over 100k in capital that he can invest into his company. So he's jumping up and down, super excited. Um but from there we actually decided to take a little bit of a different route than we normally would. So a lot of times we go directly from Chase over to US Bank. Um but we actually didn't go to US Bank um immediately because we wanted to try Elan Financial online. So if you're unfamiliar with Elan Financial, um they're pretty much the underwriting service for a ton of different banks, like a a Brazilian banks. I don't want to give you names cuz they're a bunch of like a lot of times they're banks that you've never really heard of for the most part. Um but we wanted to try an Elan Financial bank um just so we could run the online application there and I I'd been seeing people get approved really well at Elan. Um so we decided to go through Elan Financial, but that was actually a major mistake. A major mistake and we really did lose some limits by doing this and I'll explain here in a minute why I believe that is.
So we go to Elan Financial, we apply online. Um we have to wait two to three days and then finally the application comes back and the application came back as a 7k approval. Now that is not good. I mean a 7k approval on a 5-year-old entity and an 800 credit score, that means that we just we did something wrong. If that's not It should have been higher than that. It should have been probably like 20 to 30k approval, but it came back at 7k. As soon as that came back at 7k, we immediately decided, "Nope, we're cutting off Elan. We're not doing that. We're going to go to US Bank." And if you don't know, Elan Financial and US Bank actually have the same underwriting service. So, if you apply with Elan, US Bank can see that when you apply. So, we decided to kill Elan and we went over to US Bank. And the first card that we applied for at US Bank was the US Bank Triple Cash Rewards. Just to kind of give you a breakdown on the application strategy there. Whenever you apply at US Bank, you actually do want to get on the phone with a relationship manager and you want to apply for both cards on that same phone call. So, when you hop on the phone with them, you're like, "Hey, I already have a business bank account. I'm ready to apply for these business credit cards. I would like to apply for and what we would do before was the US Bank Triple Cash Rewards and the US Bank Business Platinum, but that recently changed to the US Bank Business Shield. But you want to apply for both of those cards at the same time. They'll basically run the first application, when you get the decision, they'll run the second application. Now, one thing I want to note is if you are denied for the first application, you don't want to go for the second one. You you'll tell them, "Okay, actually let's not apply for the second one." But if it's approved, you want to apply for the second one immediately cuz it'll be one inquiry. And it's going to be back-to-back approvals. So, a lot of times whatever they approve on the first one, they're going to approve on the second one.
So, we got him on the phone with our business relationship manager at US Bank. She's freaking awesome. I love I love her so much. And uh whenever he ran the application for the Triple Cash, the Triple Cash application only came back as a 7k approval. Now, let me explain what happened there. Basically, a bank will almost always approve you on the second card the same limit that they gave you on the first card. Like if you were to run through Chase and you got a 5K approval on the first one, when you apply for the second card, they're not going to give you 35K. They're going to give you probably like 3 to 5K. They almost always a bank will almost always give you on the second card a very close to what they gave you on the first card. So that's why it's important to always nail it with the bank on the first card because whatever you get on the first card is probably going to be on the second card. That's why when we applied at Chase with this client, we got 45K and then on the second card, we ended up getting 47K. They're almost always going to match those limits and get them really close. That's not a steadfast rule. That's just I've noticed what happens pretty frequently. Um so because we Elon and US Bank have the same underwriting system because we got 7K on that Elon Financial card, when we applied with US Bank for the Triple Cash Rewards, they just matched that 7K approval from the Elon Financial one. So now instead of getting what we normally would have gotten at US Bank, 25K, 30K sometimes sometimes even more than that 50K, we only got 7K. So we kind of shot ourselves in the foot. I take full ownership for that. Um I I messed up US Bank. US Bank should have been probably close to 40 to 50K for this client and ended up not being that. Um and that's just because Elon Financial gave us a small approval. We applied at US Bank, they gave us 7K. After we applied for the Triple Cash, we immediately had him apply for the US Bank Business Shield on the phone with the relationship manager and he ended up getting 7K on the Business Shield. So he got 7K Elon Financial and then the two US Bank cards, he got 7K. Um now the good thing here is because we used our business relationship manager, she was able to talk to underwriting and she got the limit on the business on on Triple Cash Rewards from 7K up to 15K. So, nothing phenomenal. Um like we still messed up, but he still ended up getting, you know, 7K, 15K, and 7K. So, not bad between, you know, that underwriting system, that bank, that's around 20 near 29,000 in 0%. So, like certainly could have been way better, but you also can't complain that much.
Once we concluded US Bank, um at this point we already had a decent bit of 0%. You know, we had the 92,000 at Chase. We just got another 29,000 at US Bank. We have the 30K SoFi loan. At this point, he has a decent bit of capital. He's over six figures in 0%. And he was getting a decent bit of inquiries on his credit at this point. So, I mean, you know, we've already probably have uh a couple to a few on TransUnion, a couple to a few on um Experian. Equifax had nothing at this point because nothing had pulled Equifax, but Experian and TransUnion were getting a little bit uh cooked at this point. So, usually when that happens, we like to give one more swing at a bank just to scrape up as much of 0% as we can within that first funding round. So, basically, where we went next was um we went to Bank of America. The reason being um is Bank of America, you can apply online and get a a decent bit of approvals rapidly with one um hard inquiry. So, like you can get four cards on one hard inquiry. So, we would only have to sacrifice one more inquiry on his credit, but we could get him four new cards. Now, when you apply with Bank of America, that I'm going to be breaking down them in a future video. Um they are best uh if you do some different strategies from what we did, but we wanted to take the fast approach because this client was just getting a little bit tired. He didn't really want to spend another month or do really much more work to get 0%. So, because of that scenario we decided just to do the online application strategy where it's one inquiry and you can get four to five cards.
So the first card that we applied for at Bank of America was the Bank of America Customized Cash has a way longer name than that but I don't want to say the full name cuz it'll it'll twist my tongue. The Bank of America Bank of America Business Customized Cash Rewards we applied for this card online. This card came back with a 9K instant 0% approval. Then we applied for the Bank of America Unlimited Cash Rewards. So this one or like I said the name is super long so I believe it's something similar to that. This card we ended up actually it went into pending and it came back as a 4K approval which that is very standard with Bank of America. They will a lot of times approve you for like 9K on the first card and then the second card is almost always like 50% of what the first card was. So we got 9K on the first one, 4K on the second one. Then we applied for the Business Travel Rewards. This card came back at 4.5K. And then lastly we applied for the last 0% card with them which is the Business Platinum or yeah Business Platinum Plus. They don't say the name of this one on the card so that's why I'm confused. The Platinum Plus and then this card came back at 4.5 as well.
So if you tally all of that up it was 45K at Chase. I'll just try I'll just do it card by card. So SoFi was 30K. We applied for the Business Unlimited at Chase. This one came back at 45K. We applied for the Chase Ink Business Cash. This one came back at 47K. We then applied for an Elan Financial card. That one was 7K. We applied for the Business Triple Cash. This one came back at uh 7K. We were ended We ended up being able to up it to 15. Um I don't have the Business Shield card cuz that card came out not too long ago and I have personally not have gotten that yet. Um the US Bank Business Shield, that card came back at 7K. And then we got at Bank of America on the Customized Cash. It was 9K. The Unlimited was 4K. The Travel Rewards was 4.5. And the Platinum Plus was also 4.5. So, total 0% yield was 143,000. And then the total funding, if you're counting also the 30K SoFi loan, which he did decide to hold on to to use those funds as well for the business, uh ended up being a total of 173,000 um in funding as a whole.
So, as you can see, like it's just getting 0% just comes down to the correct strategy. So, if we would have ran through this whole thing with his entity that he wanted to fund in the beginning and that he presented, we probably wouldn't have gotten 143,000 in 0% just being 100% transparent. Um it probably would have I think we would have been able to get close to 100K, but I think it would have landed somewhere in the ballpark of 80 to 100. Um it just depends on the person. With his credit report, um I don't believe he would just because he didn't have a ton of comparable credit um a ton of comparable debt, I I believe it would have been probably somewhere in the ballpark of 80 to 100. And I wanted to get him more than that because he wanted more than that. So, I just poked around a little bit, you know, we found this other entity and then that other older aged entity is the reason, you know, we were able to get 143,000 and to be honest, if we would have kept going and like when we cuz we're going to continue funding his account, um when we go for you know, funding round two, I believe we'll probably be able to get him close to a quarter million in 0% over a year's time, he may even be closer to 300 to 500,000. Um so, yeah, that's the exact strategy, that's the exact play, that's how we got a quote-unquote dead LLC 143,000. Hope you guys enjoyed it. I'll see you guys in the next one.