FREQUENTLY ASKED QUESTIONS
FREQUENTLY ASKED QUESTIONS
What is OPM, and how can I effectively use it to scale my business?
OPM, or "Other People’s Money," refers to leveraging external funding sources, such as loans, investors, or credit, to grow your business without depleting your personal savings. To use OPM effectively:
- Build strong credit: A great personal and business credit score ensures access to low-interest loans and higher credit limits.
- Choose the right funding type: Options include business lines of credit, SBA loans, or 0% interest introductory credit cards. Match the funding to your specific needs, such as purchasing inventory, marketing, or expansion.
- Invest strategically: Use the borrowed funds for activities that generate measurable returns, like increasing sales or improving efficiency, ensuring you can repay the funds while growing your revenue.
How can business credit help scale my business compared to relying solely on personal credit?
Business credit separates your personal and business finances, allowing you to:
- Access higher funding limits: Business credit accounts typically offer larger lines of credit and loan amounts than personal accounts.
- Protect personal finances: Using business credit reduces the risk of personal liability and keeps your personal credit score intact.
- Establish credibility: A strong business credit profile signals reliability to vendors, lenders, and partners, improving your chances of getting favorable terms.To build business credit, start by forming an LLC or corporation, getting a federal EIN, and opening a business bank account. Pay bills on time and work with vendors that report to business credit bureaus.
How long does it take to secure business funding and start scaling using business credit?
The timeline for securing business funding depends on several factors, including your credit profile, business structure, and the type of funding you pursue. Here’s a general breakdown:
- For business owners with great credit (700+): If you already have a strong personal and business credit profile, you could secure funding in as little as 1-4 weeks. This includes applying for business credit cards, lines of credit, or small loans, which often have quick approval processes.
- For those building business credit: If you’re just starting to establish business credit, the process can take 3-6 months. You’ll need time to build a solid credit profile by forming an LLC, getting an EIN, opening a business bank account, and working with vendors that report to business credit bureaus.
- If personal credit needs improvement: For business owners with poor or fair personal credit, the process might take 4-12 months or longer, depending on how quickly you can improve your credit score. Strategies include disputing errors, paying down debts, and establishing positive credit behavior.
Join The Success!
Created with
