Building Business Credit: How to Acquire Loans and Expand Your Business Successfully

Alright, so one of my last videos it was how to start a business for $125 by getting an LLC and getting credit through those and Home Depot. And the question is what do you do once your business has credit? Well, I’ve got a friend in Los Angeles who right now owns over a dozen laundromats by using this method. So what did he do to get those? Well, he established business credit through Lowe’s, Home Depot and things of that nature. So what he did was he went out and got 10 separate loans, 10 separate credit cards at $25,000 a piece. And he added those 25 thousand dollar credit cards or trade lines together for a total of 250 thousand dollars. He used that to put a down payment on the first laundromat that he purchased. Then he used the money coming in from that laundromat to buy a dozen more over the course of 10 years.