December 8, 2022 • 57 mins
In 2015, I was a normal guy with a really great job, a beautiful family, a great home, a great dog, and a generally happy life. As the Director of Operations Development at LMI Solutions, I was the king of my own little hill, creating amazing business development solutions for the company that varied wildly from building ERP software for the company to establishing entire departments, all in the name of growth. The times were great, and the whole thing was genuinely fun.
But unfortunately, I also have this thing called Sickle Cell Disease – a serious and disabling blood disorder – and on February 29, 2016, sickle cell took my vision in my right eye (after already taking my hearing in my left ear 4 years prior), and I lost my job over it because I was now a safety hazard. Really.
So just like that, there went the wonderful job, and all that came with it (family included). At the time, I was too young and foolish to know that I should at least ask for some sort of severance pay, and I instantly found myself struggling to not only learn to read again with my remaining eye but also, how to work and pay bills again.
Within 6 months, I’d figured out how to do both, but this time, I’d create glorious things, not for another employer, but instead, for myself and my own clients. And thus, the entity known as Oxford Pierpont was born.
For over half a decade now, I have worked to provide incredibly polished and efficient business development services to small business owners and multi-national corporations alike, and the experience has been nothing short of incredible.
More importantly, I have gained so much personal value from meeting and consulting with hundreds of business owners at all stages of the process, and in that process, I have changed lives.
Like any good story, there is more to it than I can appropriately convey in a short bio, but if you’d like to learn more about me, my companies, or my missions, please feel free to reach out to my team for a one-on-one conversation.
https://oxfordpierpont.com/
https://mybusinesscredit.com/
if you enjoyed the show be sure to check out my info:
https://app.wingcard.io/ROB3SA64
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Josh Bolton (00:00):
Trading contracts.
(00:00):
Are you trading options?
Unknown (00:04):
contracts on futures?
Yeah, but I'm basically the s&p500.
Josh Bolton (00:12):
Wow. Okay. That's cool. That's cool. I mean, I
trade options. I do you know,Ken Roberts, the option trader
from the 90s. No. Dude made likehundreds of millions of dollars
off the futures market. Heshowed me his tricks of options
too. So
Unknown (00:33):
wow, that's cool. Yeah, that's because I've been doing
options last year.
Josh Bolton (00:38):
Okay. Yeah. Yeah.
Unknown (00:42):
But after Russia invaded Ukraine options kind of
got a little stressful because Iwas doing the iron condors,
which was a spread. And so theprice had to stay in between two
points. And so the market gotvery volatile. And so I was
like, No, I need something else.
So that's what moved me over tofutures, which was just
wonderful. I don't care if themarket goes up or down. I make
(01:02):
money either way. So it's a
Josh Bolton (01:07):
you'll have to listen to news, you just look at
charts and be like, Alright, itlooks like it's going down
today.
Unknown (01:12):
Yeah, I actually. So I actually built a bot, to measure
the market for me. So I just dowhatever the bot says.
Josh Bolton (01:21):
Python, or?
Unknown (01:23):
No. So in Ninja Trader, Ninja has their own little
script that you can modify. Andso you can basically say, like,
hey, based on these indicators,and these parameters, this price
point, if all of these thingsmatch up in this formula, then
go along. If they don't, thendon't do anything. And if they
(01:44):
are the opposite, then go short.
And so sometimes when you're atrader, you can I guess you can
be hopeful, like, Oh, I thinkit's gonna go up, I feel like
it's gonna go up or whatever.
The bot is just the math, if theif the indications were there,
it takes the trade if they werenot there, it doesn't do
anything. So it's more
Josh Bolton (02:05):
stable. It is, I have a so use track and trade as
my treating provider, and theyhave a bot that comes with it.
And it's annoying, becausesometimes they'll go, right? I
think it was, like, give me aspecial like, 1000 bucks for
everything, including the pilotwas like, hey, that's awesome.
(02:27):
I'll take it. But uh, that it'sannoying to look at because he
goes off the like movingaverages and all that and I can
get more specialized. But at mybest rule, it took anywhere from
two weeks in between trades, andI'm like, I'm sitting here
sweating bullets again. Oh, itdoesn't go the wrong way.
Unknown (02:47):
Yeah, I felt my I thought my boss was like, long.
So my bot only takes trades whenit's in a certain level on the
mark on the on the chart. Sothere's like the volume weighted
average price. And so there arebands. So there's like level
one, two, and three. And so mybot will only take the trades
when it's in like level two.
Because when it's like inside,inside those bands, it can be
(03:09):
very volatile, going up anddown. But once it's gone to a
certain level, it stays there.
But sometimes I'm looking at it.
It's like, Oh, that would havebeen such a good trade. But it
just wasn't, wasn't guaranteed.
So it doesn't take it. So yeah.
It's awesome. It's interesting,man. That's very cool. That's
super cool. Do I have a delay onmy line? Because you've got a
(03:29):
pretty significant one. Not sureif that matters for recording
later.
Josh Bolton (03:36):
It seems like you're coming through just fine.
On my end. It records whatevermy screen says.
Unknown (03:42):
Okay, okay, good, good.
Just making sure.
Josh Bolton (03:45):
I'll say I'll check it later. If not, I'll just got
to sit there and chop everythingand paperwork. All right. So I
was thinking, Can we get a quickintroduction of who you are and
what you do?
Unknown (03:59):
Sure. So my name is Bob Hunter. And I am the CEO of
Oxford Pierpont, and also mybusiness credit, which is our
newer business that doesbusiness financing for small and
medium businesses. And thereason that there are two is
because Oxford is verycorporate, for larger
(04:19):
businesses, for businesses thatare more, I guess, office based
think lawyers, mortgage brokers,bankers, accountants, things
like that. My business credit isway more friendly, way happier
looking brand. And we helpedsort of small and medium sized
businesses to get money. And thebiggest problem that we're
(04:42):
trying to solve there isunfortunately about 90 roughly
90% of new business owners willnot make it to year five. And
the biggest reason that theywon't is because is that they
are undercapitalized. So that isthe that is the single biggest
problem that we're trying tosolve. So that So what I do?
Josh Bolton (05:02):
So let's say like I open a business, for easy sake,
an air conditioning company, Ihave all the experience, but I
don't have the capital, would itbe something, you'd help me
figure out the financing forthat?
Unknown (05:16):
Yep, so we'd help you figure out the financing. But
more importantly, we would makesure that you're doing all the
things that you need to do to beattractive to a bank in the
first place. So many businessowners what they do is they open
their business, and they'rethinking about everything in the
context of how do I provide thebest service or the best product
(05:37):
and you know, get more customersmake my customers happy? How do
I hire people? How do I grow allof these things that they're
thinking about from an operatingperspective, they're not really
thinking about the businessadministration side as much. And
so what ends up happening isyou've got a business owner
who's ready to grow, maybethey're ready to hire more
people, or acquire new products,or maybe even buy another
(05:59):
business, but they do not havethe, the history to justify
giving them money. So they mighthave cashflow. For example,
let's say that your business isdoing really well, you end up
producing $20,000 per month. Soon a cash flow, you know, from a
cash flow perspective, you lookwonderful. But then we find out
(06:19):
well, you're bringing in 20. Butin your bank account, you're
actually only keeping about19,000 or less. So really,
you're spending all of yourmoney. So if you're talking to
the bank now and you say, hey,bank, I need $100,000, the bank
looks at it as well, you're onlyreally able to spare $1,000,
(06:39):
just from your current revenue,we get that you need the money,
but we need a little bit morecushion and security. So that's
why they have something called abank rating, where the bank is
basically measuring what youraverage account balance is over
the last 90 days. And thatnumber needs to be 10,000 or
higher. So little things likethat. We try to make sure
(07:00):
business owners areunderstanding, you've got to run
your business, but you've alsogot to build your business. So
that later you're able to havethese conversations with parties
that are able to give you money.
And there's a long list of them20 things Be more specific. So
Josh Bolton (07:16):
Oh, wow, that plenty of talk about that. But
I'm just I'm just thinking ofone. And because it probably
popped up in other people's headlistening to this, does that
mean that I have to increase myprice, so I have more cushion.
But that could scare offcustomers kind of thing.
Unknown (07:28):
It's it's more about how you're using, how you're
using your money. So forexample, with the bank rating,
right? Let's say that yougenuinely did need that money.
Because obviously, you did inthat hypothetical example, if
you brought in 20, and you werespending 19, I'm sure you
weren't going out and you know,paying a monthly note on a
Ferrari, you know, you wereprobably paying your employees,
(07:53):
we were probably paying foradvertising or anything for your
business. So what you want to beable to do is instead of just
having that cash always beenspent, have a revolving line of
credit a business line ofcredit, that is cycling every
month, that is secured by acertificate of deposit. And that
accomplishes two things for you.
One, you took your original cashthat you had, you put it into a
certificate of deposit, which isa high interest savings account
(08:16):
at your bank. And then your banksaid, okay, cool. So we've got
this money here is growinginterest, you're now able to
say, Well, hey, I want to usethat CD, as collateral for a
revolving business line ofcredit. So now you've got two
sets of $20,000, you'd have theone that was your original cash,
which is now safely sittinginside of that CD. And now
(08:37):
you've got $20,000 of revolvingmoney, okay? If you do not pay
that $20,000, like, let's saythat you spend up all the money,
and the following month, youdon't do anything to bring your
balance down, while the bankisn't as worried as they
normally would be. Because theywill just simply take the money
out of your out of your CD,because that is your security,
(08:57):
that's your collateral, if youend up defaulting on that. So it
makes the bank feel better. Byhaving that money safely sitting
in that CD bearing interest.
That means your bank rating isnow going to be a little bit
higher, because your bankbalance is always staying at
least the same or higher as itis increasing. And finally, by
having a business line of creditat the bank, you're now more
(09:20):
attractive, attractive becauseyou're able to go to another
bank later and say, Hey, I'vegot this account with Bank A,
it's in good standing, I pay mybill. I'm always keeping the
money revolving like it'ssupposed to be. Give me more
money. If we take that a stepfurther, when we're talking
about how to bring down theseexpenses, bringing it to a
(09:40):
vendor, instead of just spendingmoney outright. Let's say that
you are, I don't know spendingmoney on gasoline, right? You're
driving around, maybe you'redriving them to your worksite
maybe you're delivering stuff orwhatever it is. Get a gas card.
That's another example. Maybeyou're spending money on
recurring bills like you've gotsome software bills where you
have a payroll bills or whateverit is as recurring, instead of
(10:03):
spending that as just cash, geta special credit card just for
those kinds of revolving bills.
So it's not necessarily aboutonly about just reducing the
costs, which I mean, if you can,by all means do. But it's about
spending the money in a way thatis wiser, and allows you to get
multiple uses of the samedollar. So I don't know if that
makes sense.
Josh Bolton (10:26):
It does for me, but I wanted to ask on a question, I
didn't think how would I, let'ssee, I formed my LLC, I buy my
virtual real estate place, myLLC there. How would it convince
a bank to be like, I know I'mnew, but can I get a $10,000
line of credit? How would thatwork?
Unknown (10:44):
So there's, so the banks are going to want to honor
these three things. So you'veeither got to have cash flow,
which generally needs to be10,000 or more, or you've got
collateral, which in your casewould have been the house, or
you have good credit. So you'vegot to have two of those three,
any two, but you need at leasttwo of those three, if you are
someone who has good credit, andby good, we mean a score of 680
(11:07):
or higher, then you're able tonow leverage that good credit
history and say, Hey, bank, giveme give me money. And the other
thing too, is you still needsome kind of cash flow to back
it up. Because remember, youneed to now if you've just
started a business, you mightnot have cash flow yet, we do
offer startup financing, that isa type of financing that we can
(11:28):
give a business that has noteven been opened yet. And it's
based on your personal income atthat point. So the bank needs to
verify in some way that themoney is secured, either because
you're putting up collateral, oryou're putting up not that
you're putting up cash, but thatyou at least have cash, or
you've got, you've got goodcredit. So in your case, house,
(11:50):
and your credit would be wouldbe your would be more attractive
features. There that case. Now,if you are going to be also
specifically talking about realestate, you can also go and get
private money loans. So we dooffer that as well, a lot of
real estate investors, what theywill do is a lot of fix and
(12:10):
flips, they'll go buy a propertyat one price, they will put a
certain amount of repairs intoit, and then sell that property
at a higher price. We providefinancing for that as well up to
$2.2 million.
Josh Bolton (12:26):
So the person then must have a very good plan and
very good credit history for youto consider something that I
Unknown (12:34):
Yeah, so credit is going to be the biggest thing.
There's so many people who havethis misconception that and I
get why because people say thisonline all the time, oh, you can
go and just open an LLC. Andyou're going to be able to go
and buy, you know, an Escalade,or f150 or all this stuff just
(12:54):
because you have an LLC or toopen a week ago. And it does not
really work like that. Theystill need some kind of
verification that you have themeans to pay, whether it's
through your credit history asevidence that you've paid other
people on time and responsibly,or if it's through your personal
income that verifies that you doat least have access to it to an
(13:17):
income that justifies the amountthat you're looking for. Or if
the the thing that you'regetting, right, so the
collateral that you're gettingin this case, being the house is
worth enough to satisfy theloan, if for some reason you
defaulted. Everything that thebank asks you all the different
questions, it's really only toanswer one thing, and that is if
we give you money as the bank,will you as the borrower pay it
(13:40):
back? If the answer to thatquestion is yes, then the bank
is very happy to give you allthe money that you need.
Josh Bolton (13:47):
Interesting. So let's say hypothetical, because
you definitely a guy that couldtell me the right answer. Let's
say I get a bunch of backersprivate investment, I formed my
LLC, but I get for accreditedinvestors to give me 200k. Total
is that then when I could takeit to the bank and say, I know
(14:07):
this is a new LLC, but I have$200,000 worth of cash from
backers. I'd like to put thisdown as a payment is that can
that work?
Unknown (14:16):
After about 90 days, it definitely can. The reason that
I say 90 days is because theyalways ask for about three
months of history, you still cango ahead of time, but it's more
guaranteed after 90 days.
Josh Bolton (14:29):
So then I would have to prep my investors say I
would need to form my LLC puteverything in, keep it there
legally, 90 days, and then I canwe can start the process right?
Unknown (14:40):
The 90 days just makes it more ideal. So you can
definitely like let's saytoday's Tuesday, I'm gonna go in
and take this 800k that I havein one straight to the bank and
ask for more money. Youcertainly can. But there's still
a possibility that you can getdenied. Whereas in 90 days of
you showing that hey, I've hadthis money and it's stable. It's
Not money, that is just a quickblip, and then it's gone kind of
(15:03):
thing. Because again, you got tothink about it from the bank's
perspective, are they going tobe safe giving you more money,
right? After them asking foryour last three months of
history, and now your bankrating is, you know, is very
high. They're very happy. It'sway easier to get the money,
especially if on top of that,you've also got a decent credit
Josh Bolton (15:24):
or credit partners that will say, We're partners.
Okay. That was really helpful.
Yeah, that would have been, asone of those I've been thinking
of getting into real estate.
Now, I know you're the guy thatalso called you if I'm gonna do
it. But um, oh, yeah. We had it
Unknown (15:40):
was just a website, too.
Josh Bolton (15:42):
Oh, yeah. I liked it animation, if you scroll on
your website?
Unknown (15:49):
Oh, yeah, thank you.
There's a page on our websitethat goes into more detail about
real estate specifically. Andthere's an animated video as
well, where we talk aboutexactly what what is needed to
get real estate financing. Sowhere you know, you go, you get
the property, you need to findout what property you want.
(16:09):
Basically, find out what repairsit needs. If you decide to get
into the fix and flip side ofthings. This cannot be an owner
occupied property. And we workwith private money lenders to
get you that money. So it's avery, very good way to get
access to capital and get intobusiness very quickly. If you
know what you're doing. Ofcourse, you still have to put
(16:30):
the legwork in of actually, youknow, doing flipping the
property. Yeah, they're doingright.
Josh Bolton (16:38):
Yeah, either you're doing it yourself, or you're
hiring a good contractor to doit. Either way, you're gonna
have to do something. That'sinteresting. So what exactly is,
so I'm sure we hit a couple ofsteps, they were talking about
one of the the 20 steps, whatare a few that I might miss that
I'm not familiar with?
Unknown (16:57):
Sure. So a few things that people will just kind of
overlook, or don't even realize,matter. Let's start with the
basics. So the things that arecalled a lender compliance, this
would be things like, if you arenormally putting your cell phone
down, you know, your personalcell phone number on these
applications for the bank, youreally need to be putting down a
(17:18):
business phone number that aregoing to check, this would be a
411 registered business phonenumber. Same with your address,
you need to make sure that youhave a dedicated business
address, not just your house,even if you have a home office
still need a dedicated businessaddress. Another one is your
email, you might be putting youknow bob.hunter@gmail.com When
(17:39):
it should be Bob dot Hunter atOxford pierpont.com. Basically
saying that you need to makesure you've got your name at
your business.com or dotwhatever, as a legitimate email
that just further gives the bankcomfort that you are a real
business, right. You also wantto make sure that you'd have a
website for your business, theywill check that basically
(18:02):
they're trying to find out. Ifyou are actually a business that
is legitimate and has been inbusiness for some time, they're
looking for that they're lookingfor your state registrations,
they want to make sure thatyou're not only registered with
your local Secretary of State,but you are also in good
standing and in compliance withSecretary of State. A few other
(18:24):
things, if you are going to begetting higher amounts, they
would like for you to be inbusiness for at least two years,
they would like for you to haveat least $10,000 per month and
in recurring revenue coming in,they'd like for you to have a
bank rating of five or higher,that means that you are keeping
at least $10,000 per month inyour account or more. There's
(18:45):
there's a long list. Butbasically all of these things
help the bank answer that onequestion of if I give you money,
will you pay it back? Every timethat the answer to one of those
questions is no, that increasesthe likelihood from the bank's
perspective that you're going tobe someone who will default on
the loan.
Josh Bolton (19:06):
Sir, I'm looking around like I've tried to
process everything like he'sgiven me gold right now. And
remember this, oh, well, we're
Unknown (19:12):
actually going to be putting all this on our website
for for free for everyone in afew weeks here, so it'll be
there for you.
Josh Bolton (19:20):
Awesome, then be checking in your site. And this
is awesome. So that like alreadythe I knew the business number,
but I didn't because I wasthinking like oh, just buying a
nerd cricket number will cricketthe mobile company listed then I
would have to register itthrough my okay. This is good
stuff.
Unknown (19:39):
It's there are plenty of companies that will give you
a phone number and there'snothing stopping you from
forwarding that number to yourcell phone. But it still needs
to be an actual business numberthat is registered. Like that is
like 411 or excuse me 411registered like that is just
your business line. Banks reallylook for that.
Josh Bolton (19:59):
form one one registered, okay, is there like
a specific site I would need togo to for that
Unknown (20:05):
there are plenty. So um, on our website, there is a
Resources tab right on thehomepage. And in those
resources, you'll see where itsays marketplace, there are a
lot of phone companies that werecommend, like go to
RingCentral manage any one ofthose can get you a number for
the address, you can actuallyuse I postal, but I postal
(20:26):
actually provides phone numbersas well. So you can kind of kill
two birds with one stone there,you can find links to all that
stuff in our website underResources. Under resources,
you'll also find very helpful,we list out the vendors that you
might be able to use to getvendor lines of credit, we tell
you exactly what credit bureaus,they report to whether it's done
(20:46):
in Bradstreet, Experian, orEquifax. And we tell you if they
have any net terms, so like net,15, net 30. Net 60. And for
those of you who do not knowwhat net terms are, is basically
where the vendor says, Hey,we're gonna give you the product
or the service today, and youhave 15 days to pay in the case
of Netflix team or you've got 90days to pay in the case of a net
(21:08):
90. Basically, you want to makesure that your bill is paid in
full by whatever that term datais. That way, you're always in
good standing with them, youneed 15 accounts total on your
credit report. And those vendorlines of credit will help you
get to that number 15. And makesure you keep them all in good
standing, then boom, your creditscore your business credit score
just slowly inches up.
Josh Bolton (21:31):
Something these vendors or doesn't matter in
particular, which vendor or it'sjust 15 vendors in general,
Unknown (21:38):
the wall not even just a team vendors, it can be a mix
of credit cards, business linesof credit and vendors for a
total of 15. When it comes tothe vendors, the main thing that
matters is that they actuallyreport to the Bureau's if they
don't mean that doesn't meandon't work with that vendor.
It's just so you'd have to beconscious of the fact that
working with that vendor isn'treally going to help you from a
(22:00):
business credit buildingperspective, because no one's
reporting.
Josh Bolton (22:04):
Good points. Yeah.
But it's like maybe it's one ofthose, they're hardworking, and
they're trustworthy, but they'renot going to necessarily tell
the others about the creditbetween us.
Unknown (22:18):
Exactly. Exactly.
Exactly. And that mean, vendors,I mean, that can be something as
simple as a gas card orsomething as complicated as, I
don't know, maybe you sell Tshirts, if you've got a t shirt
vendor that's always giving youyou know, those products, or
maybe you manufacture something,and instead of just buying all
of your stuff from varioussuppliers, you're taking the
extra time to say to eachsupplier, hey, do you all report
(22:41):
to Dun and Bradstreet or Equifaxor whoever? That way you at
least know that this particularsupplier when you're buying for
them from them, you're stillgonna get credit for it from a
business credit perspective?
Getting again, yet another useout of every dollar.
Josh Bolton (22:59):
Right? Yeah, it's like, maybe you have like the t
shirt analogy you gave earlier.
Maybe you have one t shirtwholesaler that gives you an
amazing deals, but he doesn'treport like the savings is worth
a sack. So you're not gettingthe double hit but
Unknown (23:13):
Right, right. And I mean, it's, it's one of those
things you kind of have to dolong term math for because you
might be saving money today. Butmaybe by having a vendor who was
actually reporting and boostingyour business credit score, you
might have been able to getaccess to more money later. So
you just kind of have to weighthe pros and cons of that. But
that's part of having abusiness. Right. It's part of
(23:33):
it. Right? That is part of
Josh Bolton (23:35):
the plan. Been for some,
Unknown (23:41):
but for some Yeah. As soon as I said, I realized,
well, that doesn't sound veryfun at all.
Josh Bolton (23:47):
That was a joke.
Man. So yeah, that'sinteresting. So how, let's say,
I do get my LLC, I go through Ipostal and get everything out
who would ever talk to you forthe grass gas card because you
bring that up a lot?
Unknown (24:06):
Well, the reason I bring up the gas card is because
I live in Atlanta, and you can'tget anywhere without a car in
Atlanta. I mean, I guesstechnically they have the bus,
but the bus takes forever sopeople almost always have a car
for the most part. So like it'slow hanging fruit, because it's
money that you are almostguaranteed to be spending
anyway. So if you were gonnahave to spend that money
(24:28):
regardless, you might as well begetting credit for it. So if you
are on our website, you click onvendors under the under the
resources tab. You can filter bygas cards, and you'll see
there's like you know, all yourbig gas stations Kwik Trip is
really big down here. Youbasically apply for that card
(24:49):
and now whenever you're fillingup, you make sure that you
always use that gas card andjust like any other credit you
pay it at the end of the monthin full. Always pay your bills
in full that matter. was a lot,but you paid in full. And now
great. Now you've gotten tousers out of the money, not to
mention you're able to delayhaving to pay in the first
place. So.
Josh Bolton (25:10):
So when you say pay in full, let's say I did $80,
Phillip of my tank, what I paidthe full 80 off, or the minimum
a request for the month.
Unknown (25:20):
Because I've heard if you paid, I would never
recommend paying the minimum.
Okay? Here's why I say that. Youwant to make sure that your
utilization is always as low aspossible. And so it's great to
have the benefit of being ableto delay a payment. But people
get into trouble when they startpaying the minimums because now
balances start to add up.
(25:42):
Because now you're carrying overthis month's expenses into the
next month. And if you have alimited amount of money as your
resource, Will, you're settingyourself up for failure, because
at some point you're gonna runout, it's better to only limit
yourself to money that you aregoing to spend anyway when it
comes to credit. Because let'ssay that you are already going
(26:03):
to spend $80 on that, Philip,just pay that full $80 Don't get
don't don't do the partial, Iknow that people sometimes do it
like Oh, I'm just gonna pay theminimum, you end up incurring
interest now, you end up pissingoff your vendors and running the
risk of, of I guess tarnishingthose relationship relationships
because you're not paying yourbill as agreed. And you just end
(26:25):
up running into problems. Andthen you're also taking more of
a personal credit approach tosomething that really should be
handled as business credit. Sodoes that make sense?
Josh Bolton (26:38):
It was probably something like a Grant Cardone
talk or whatever, where they'relike, only pay the minimum, one
bike, that doesn't sound smart,but a lot of people and I keep
saying so I guess my favoritething.
Unknown (26:50):
I mean, you know, I always say only stupid people
know everything. So that's agood, I definitely would not, I
definitely would not disagreewith Grant Cardone in that way.
But I will say from personalexperience, and just what I've
seen, people have this stigmaabout credit in general. And it
really has a lot to do with howcredit gets handled. So let's
(27:13):
say that we're talking aboutpersonal credit here, okay, you
might have a credit card, let'ssay that your credit card has a,
I don't know, $10,000 limit,okay. And so over the course of
a month, people will swipe,swipe, swipe, and all this
stuff, then the bill comes andthey've got a minimum payment,
they pay that, but you stillhave this big balance. And now
you've also got interest addedto that, because he carried over
(27:35):
a balance. And you might stillneed that credit card, and
you're still swiping and buyingstuff. And now you're just kind
of setting yourself up with ahole. And now your credit score
starts to go down because you'vegot this balance that you're
carrying over. The thing aboutpersonal credit is that usually,
that bill is being paid by yourpersonal income, which is often
(27:56):
limited for most people, it'swhatever your job pays you in
most cases. So that's the amountof money that you have to spend
on paying down any credit cards.
With business, it's a little bitdifferent. Because with business
number one, the thing thatyou're buying probably is
something that is an asset, nota liability, meaning that it
makes money instead of justcosting money. So that's the
first difference. The second iswith a business, you're able to
(28:19):
generally make income that youcan then use to pay the card
back. And so or not even justthe card in this case, but the
debt in general, you're able totake that money from the
business and now pay off thatdebt because that debt has now
produced money with personalcredit. Debts don't usually
produce money they usually arefor buying things. So that's why
I say I wouldn't be carefulabout taking personal credit
(28:41):
habits like only paying theminimum over to a business, a
business credit card or businessline of credit whatever it is,
just because it's kind ofsetting you up for failure down
the road, at least in myopinion. Now again, other people
might think differently, but Iwould not form that bad habit if
I can help it
Josh Bolton (29:03):
No, it's a it's a very good point that you bring
up because it I've always paidaggressively on my personal line
of credit. Just I don't likeseeing debt so I just like make
it go away as fast as possible.
But we have like for thebusiness like different
entrepreneurs I've had on theshow they've even said to like
yeah, we we took it we maxed outall our credit cards, cash
(29:23):
advanced everything. I did thatonce by accident and I'm like
God the interest in seen on cashyou're bouncing. Yeah. But I'm
sitting here going. They'relike, Yeah, we just paid the
minimum enough to not make thebanks angry with us until we hit
it big Mike. What if you didn'thit a big though? And he's like,
Well damn, screw that.
Unknown (29:44):
Yeah, yeah. I don't get me wrong. I get why people would
do it. But it's your it's almostlike you're in Vegas and you're
gambling with your future atthat point. So if it's a habit
that you can avoid just avoided.
Again, I understand why peoplewould, especially if money's
tight, but you're borrowing timein that, from that perspective,
(30:07):
it might have been better toslow down and revise your
marketing strategy or yourbusiness plan or your operating
strategy in a way that producesmore revenue so that you don't
really have to play that riskygame.
Josh Bolton (30:24):
Yeah, I agree. And that was a big one for me.
Because that's that was thefinal fall for him. I was the
guy that set for multiple he wasthe final one. I asked him. I
said, so what happened? If youdidn't hit it big? He like, oh,
have we so scared? He's like, Ihe's like, I've already had
like, two bankruptcies? And I'mlike, that's not good. Yeah,
Unknown (30:44):
it's a it's a very risky way to do business. I
mean, it does work in somecases. But it's a very risky
start to the process.
Josh Bolton (30:54):
Yeah, it's like I tell a lot of people and it
sounds like you're very similarmindset is like, just bootstrap
it, make it work. Work withinyour means. And then as you
grow, just throw everything backinto it.
Unknown (31:06):
Right, and I mean, use other people's money whenever
you can. But there's adifference when you're dealing
with people in the sense of likeinvestors, right. So like, an
actual somebody gave you moneyinstead of an institution, that
would be a bit of a differentsituation. Usually, an investor
(31:27):
has already understood where youare financially in your
business, and what you'replanning to do with the money.
They will also, in many cases,be giving you advice on what to
do with the money, it's not justthe money that you get, but
often you get a little bit ofcounsel, because the investor
they want just like the banks toget their money back if they
gave it to you. And there's alsonot always a whole heap of
(31:51):
interest that is rolling overevery month that you do not pay
down your balances when you'redealing with, with a private
investor. If you're dealing withmoney from an institution like
like credit cards, or a loan orsomething like that, unless
you're on some kind of terms,where it was 0% interest for the
first year or something, youknow, something glorious like
(32:11):
that, you always do need to beconscious of how much money the
money is costing you howexpensive that money is, right?
And if you can make that moneyas cheap as possible, and put it
to work, so that it producesitself as quickly as possible,
covers your debts, and you cannow expand and move on.
Definitely do that, even if itmeans slowing down, taking some
(32:35):
time to revise your operatingstrategy. And then starting
again. I mean, that's what Iwould recommend just being safe.
With money.
Josh Bolton (32:44):
Yeah, no, and we see everything you've presented
very sound up trying to lock itand keep it there. So then,
let's go back to thehypothetical was talking to you
earlier about the businesscredit, Blitz, is there certain
industries that you may not havethe best track record, but
(33:04):
because you're in aerospaceengineering, or tech, SAS
company? Are there certainbecause of that aspect? Is it
easier to get investors andfunding from banks that you've
seen,
Unknown (33:19):
it's easier. It's way easier for businesses that have
physical assets. So interesting.
Another way of putting it is,again, this still yet again,
goes back to that question thatthe bank says of, hey, if we
give you money, well, we get itback, the bank can feel better
about getting their money backis, if there's something that
they can sell off later. Let'ssay that you are a factory, you
(33:41):
might be selling off some ofthose heavy equipment assets
that you've acquired. That's waybetter for the bank, instead of
having, let's say, a digitalmarketing agency where there's
not really anything tangible. Ifyou go under, what can they
sell. So you see the differencethere. So that's why it's easier
to fund to fund I guess, thoseequipment, heavy asset heavy
(34:05):
businesses. So and it just kindof scales down. Now, there are
limits to that, for example,with trucking. A lot of people
will ask me, Hey, do you offerloans for trucking, you know,
Equipment Financing like that?
We do technically, but they'renot easy because the banks don't
like truckers simply frombranches and that a lot of new
(34:27):
trucking companies. They don'treally, they don't succeed very
often. And so there's a highrisk not to mention, those
trucks end up costing a lot ofmoney, not just after you bought
them but a lot of maintenance, alot of gas. There's a lot that
has to go into a truck. So howmuch the equipment costs after
you buy it is also a big factor.
Josh Bolton (34:49):
Right on that note of the trucking let's say I was
getting into more of equipmentrental, like trailers and small
box trucks. Would that be easierto for me to get money
Unknown (35:01):
I don't know if I would say easier because, again, if
anything happened with the moneythat the bank gave you, well,
what do they have to sell asassets? There really aren't any.
That doesn't mean that this is aproblem. It just means if we're
just talking about like, Hey,what is easiest for the bank
that have come and put it sothat that business where you're
(35:23):
renting, like Sprinter vans andbox trucks would be almost the
same as the digital marketingagency, both of them own nothing
really? Does that make sense?
Josh Bolton (35:33):
Okay, so that they look at the vans as more than
half value when you buy it.
After
Unknown (35:39):
for my lecture, so yeah, but you can say that,
yeah, at least you have anasset, though, at least you have
an asset. So it's not the bestasset, because it's an asset
that requires a lot ofmaintenance and money, but it's
still an asset, technically, youcan still sell the truck,
technically. Whereas if you'rerenting, we really don't have
(36:00):
anything to sell. But again,this also has a lot to do with
how qualified you are frombeginning because if you've
already got a let's say thatyou've already started a
business, you've been inbusiness for two years, and
you're already bringing inrevenue, with the rentals, and
you've protected your personalcredit. So you've got a 680
credit score or higher, it'sstill an easier conversation to
have. So I don't want to givethe impression that it's all
(36:23):
about the equipment, or allabout the purchase, only,
because that's just one factorof many that have to be
considered. on whether or notyou're going to defaults on the
loan.
Josh Bolton (36:35):
That's interesting.
Yeah. Because I would think ifyou have because trailers don't
usually, usually drasticallydeplete in value. I know if you
buy a truck, it's like a carwithin the first five years.
Like,
Unknown (36:47):
trailers. Yeah. I'm sorry, I didn't even hear that
part. I'm so sorry. It's okay.
Yeah. My, so my partner, sheowns a trucking company, you
know, give her a quick plug aglobal fleet logistics, and her
Yeah, her biggest, our biggestchallenge is, is getting the
people who do have the trailersand getting them as for drivers,
(37:10):
because they can take heavierloads, they make more money. And
like you said, the trailer isnot something that has to be
like, maintained all heavily, Iwas thinking just about the
actual truck, the vehicle on thefront end, that is where all the
maintenance and all the heavyexpense is coming in, I guess,
which is, which is definitely aproblem. But it's a problem that
(37:32):
can be worked around. Theimportant things here are making
sure that you're bringing enoughto the table, to to make
yourself attractive to the bank,so that you are bringing your
good credit, you're bringinggood cash flow, you are
bringing, you know, a goodhistory with vendors and other
creditors, you are making surethat your cash flow inside of
(37:53):
your bank account is healthy. Soeven if you are bringing in over
$10,000, that you're actuallykeeping a good portion of that
money, making sure that you'reactually registered properly, so
that you are attractive to thebank in that way that your SLS,
registration is healthy, and ingood standing, all of that stuff
that goes into whether or notthe bank wants to work with you.
(38:14):
So if you're thinking about itfrom that perspective of hey,
would I give me money, right?
Based on all these things, allthese different factors, then
you're able to just have aneasier conversation at the
outset.
Josh Bolton (38:30):
So then, yeah, it's more lay the proper foundation
down, and obviously scale andgrow but have the foundation so
when you do go on a year to tothe bank and be like, Yes, I'm
still new. I know this. Look atlook at my business how well it
is. So with all the bells andwhistles I've lined up for you
make it to the point like andthen they just the chairman's
(38:51):
are like, Alright, how much dowe give them?
Unknown (38:54):
Yep. It's so funny, because, you know, there's so
much money out there, and peoplewill easily give it to you, if
you can prove that you that youcan pay it back. That's really
all it comes down to. I mean,there there are people who will
go and like, okay, greatexample. Elon Musk just bought
Twitter for what was it like44,000 Billion US me not $1,000?
(39:27):
Yeah, we're billion. But hedidn't finance that all himself.
You know, he does have, he doeshave loans for that. He has
investors for that. And he hashis personal money in that as
well. So my point is, there'splenty of money out there that
can be gotten for you. If youcan just prove that you are
(39:47):
someone who is capable of payingit back, lowering your risk
overall.
Josh Bolton (39:53):
Well, I think also, there's a whole thing with Elon
Musk in that so did you hearabout his 55 billion payout?
Unknown (40:01):
No, I didn't. So like,
Josh Bolton (40:04):
a month after he bought Twitter in, I saw the
headline in my trading newsfeedsaying Elon Musk got paid out
from Tesla $55 billion. Like,that's why he kept floundering
during the summer, is he wantedto make sure he's going to get
that payout.
Unknown (40:19):
Because of that, yeah.
That will make way more sense.
Right learning.
Josh Bolton (40:25):
I love sir dude has so many layers to how he's
thinking it must be insane tolive in his own brain.
Unknown (40:34):
Yeah, I can imagine. I mean, he's, he's been a hero of
mine for quite some time. Soit's always interesting. It's
interesting. Even seeing thestruggles that he's having. Now.
I'm curious to just kind ofwatch this play out and how he
ends up overcoming the wholething with Twitter. So yeah,
Josh Bolton (40:52):
one of my one of my buddies, he's a coder, and he
even said he like this eithergonna be the best thing for
Twitter, or it's gonna be thedeath. We don't know. We'll
figure it out in like, two tothree years.
Unknown (41:03):
Yeah, I'd say two to three years is pretty accurate.
I mean, I feel like it's gonnago well, I think that they're
just whenever there's change,it's always difficult. And he's
not doing anything that anyother m&a person, or mergers and
acquisitions person doesn't dois one of the first things that
they do, they company getsbought. And they kind of cut the
fat, like right away, trying tofigure out who deserves to keep
(41:25):
their job, who doesn't, whatprocesses are making money,
which ones aren't. And overtime, things start to stabilize,
and things start to grow. Andthen you have a stronger
business. The big thing aboutTwitter, I think that is
fascinating is it's the firstkind of social thing that he's
had to really do. With PayPal,he had all the payment systems,
(41:48):
revolutionized. And then ofcourse, with Tesla, he had the
whole electric car industryrevolutionized with SpaceX. He
literally has space travelrevolutionized, because that was
kind of NASA's ballpark atfirst, and I'm just curious to
see how he would be able torevolutionize Twitter, or not,
not just Twitter, but socialmedia in that way. So we'll see.
(42:09):
Let's see.
Josh Bolton (42:10):
It'll be very interesting. If we might have a
chat in two years and be like,Wow, he did a great job. Yeah,
Unknown (42:16):
I mean, I feel like you will I mean, you know, it's, the
guy literally does rocketscience. So how hard would it
be? However, though, in hisevents, rocket science might
actually be easier than dealingwith people.
Josh Bolton (42:29):
Because the honest at times. You have computers and
science, you don't have to dealwith emotions, and we got
emotions. There's a whole hotmess with that.
Unknown (42:40):
Yeah. Yeah. And then I mean, he's still also has the
Optimus robot coming out, too.
So he's got a lot on his platewas all connects together?
Josh Bolton (42:52):
I'll say he also is like, involved with open AI. And
the neuro link thing too,because it was like six or
seven. Link. The boring company?
Yeah. Well, he has ever reallydone anything. They just made
the flavours, right. He's theguy. He's still
Unknown (43:14):
he made the flame throwers to to raise money.
Josh Bolton (43:18):
But obviously, I haven't heard anything about the
boring company sense. Or is itjust
Unknown (43:25):
something maybe about a month ago? Yeah, it's it's it
was. So I think the biggestroadblock that he's dealing with
are the state regulations.
Literally drilling, you know,through like drilling tunnels,
through states, I can imagine,is problematic. So I think
that's where his biggestroadblock is, with the boring
(43:46):
company. And I mean, the conceptitself, I thought was a
wonderful one. Like takingCalifornia for example, you're
supposed to be able to make thattrip from San Francisco down to
LA in like a quarter of the timeand be able to just, you know,
on this automatic track throughthis tunnel. Like I think that's
an amazing concept. If you canactually get the permission to
(44:08):
do it, because it may on thesurface is simple enough. But in
doing like in practice, it'sprobably a lot to deal with to
literally drill through realestate. Yeah,
Josh Bolton (44:23):
yeah. Then you have a whole dilemma of are you a
still in California or Nevada,like if you're going to Vegas?
If you get pulled over for somereason. Where's the lines?
Unknown (44:37):
Yeah, I think it's an I could be wrong. I think it's
supposed to be automatic. Likeit's supposed to be a track that
is pulling you. So like once youare at the start of it. It's
almost like you're on thisconveyor belt. Well, not a belt,
but you're basicallyautomatically being taken
through the thing at this reallyhigh speed. So it should be
(44:58):
safe, you know? Sounds likebasically high speed rail for
cars is what it sounds like.
Josh Bolton (45:03):
Yeah. Yeah, it's probably just gonna be the
politics in the lines of whereeverything goes is his biggest
problem right now. That'sinteresting.
Unknown (45:13):
I'm just curious solutionary though he if he
pulls it off, all right,
Josh Bolton (45:17):
he's gonna He's gonna be changing so many things
about just the human conditionin general. And then like three
or four generations later, like,oh, it's normal. And like, oh,
it was Elon Musk. Who did this,like Nikola Tesla's like, who?
Exactly
Unknown (45:32):
will talk about him the way we talk the way we talk
about Tesla? Yeah, only Tesladidn't actually get to be as
wealthy or as famous. So Elon isalready doing pretty much
pretty, pretty well.
Josh Bolton (45:47):
I'm certain he because he's, he loves reading
his sci fi books. He's He'sstudied Tesla. And it's like, I
am not going to be that guy.
I've just got to four.
Unknown (45:56):
I love I love Tesla. I mean, probably another was about
10 minutes. 1020 minutes. Yeah.
Cool.
Josh Bolton (46:05):
And then I'll slowly start winding it down.
But yeah, Tesla. Man, the thingsNikola Tesla has done for us is
amazing.
Unknown (46:16):
I love Tesla, because I mean, so I always in reading,
okay, well, I'm a bit of a nerd.
And so there's this thing that Iam always always interested in.
And it's atmosphericelectricity. And basically, you
have the ionosphere, which iswell above our atmosphere, that
(46:37):
is constantly dropping ions. Andso the sky is very, is very
positively charged, the groundis negatively charged. And so if
you're able to basically connectsomething to the ground, and,
and put it into the air, whereat every what is it? It's either
(46:57):
every mile or every meter, Ican't remember right now. But
the level of the level of chargegoes up, as the higher you get
into the sky. And so I waswondering, like I bet, people
could basically turn buildingsinto enormous batteries, where
the height of the building iswhat ends up making it possible
(47:19):
to collect ions directly fromthe sky, and use the ground that
the building was attached to asthe grounding force to
circulate, or to create acircuit of electricity
throughout the building,therefore making the building
one enormous battery. So I'vethought about that, though,
because of what Tesla does, andhow Tesla was trying to create
(47:41):
free energy for everyone. And Iwas like, man, there's all this
electricity out there, all thepieces are already there, it's
just a matter of getting themput together in a way that is
effective, without killinganyone, and without threatening
anyone as far as the economygoes, because some things that
are possible still are notallowed, just because they're so
(48:02):
disruptive.
Josh Bolton (48:05):
Yeah, that's interesting, because I read
three or four months ago of thisone place in Dubai, where
they're building like 480stores, it's gonna be the
tallest building ever. And withthe the data demonstration,
where it would be it would be upin the cloud. So would that be
close enough that I on few
Unknown (48:26):
words, so it's funny, because the ions are just
concentrated, the higher up yougo, when you're getting into the
clouds, that's why you know,you've got all this electricity
in the clouds, just because ofhow high it is. And so it's just
a matter of being able tocapture those ions. So your,
your building has to basicallyhave almost like spikes on it.
(48:48):
And so the spikes are able toattract the ions on their
points. And then the ion is ableto travel into the into the
grounding wire. And that'swhat's able to create that
circuit. So if you've got abuilding covered and enough of
those of those spikes, you'rebasically and I'm sure I'm
explaining this terribly some,some average versus electrician
(49:09):
or scientist is probablywatching this and thinking
that's the wrong answer. But thegeneral idea is simply taking
the positive ions connectingthem with the negative ions, but
doing it in a massive flow, sothat you're able to constantly
generate this, this circuit ofelectricity. So it can be done
quite certainly can be done. Andif not, then it'll mean you will
(49:31):
actually need to figure it out.
If not, yeah. Figure it out.
Hopefully, he doesn't, hedoesn't take everything. I
remember I was a kid I was in11th grade, I was in
environmental science class.
Right. And we were just talkingabout like solar panels and all
that stuff. And my first thoughtwas, oh, someone should just put
solar panels on the car and onhouses and just, you know, turn
like the shingles into solarpanels. They're both black.
(49:54):
Anyway, like, that was mythought and I was just a kid.
But sure enough, Elon did and Iwas like, Dammit, I should have
done something. I should havedone it. So I'm sure you will
because to me, it's like acommon sense thing, which means
it's probably common sense forsomebody else to.
Josh Bolton (50:12):
Well, like, for me the biggest one, it was meant to
be a joke, but I took it quiteliteral. And in elementary one
of the teachers like, oh, latraffic's terrible this snap.
Does anyone know how to cure it?
Like as it were, like six toeight year olds. I was like, why
don't we just dig a hole in theground and just have people
drive there. You can't get a carcrash if you're in a hole.
Unknown (50:33):
And look, now you've got your long doing the boring
feel on doing that. That'sfunny. It's funny, but it's very
true.
Josh Bolton (50:45):
Exactly. This has been an absolute honor and a
blast to be with you. I'velearned so much personally.
Thank you. We're kin. So mythree going out questions our
first one, other than work, whathave you been doing to keep
yourself busy during these COVIDTime for previous COVID times?
Unknown (51:08):
Oh, boy, I actually work 16 to 20 hours a day, every
day. So that is pretty much mylife. If I'm not working, I'm
doing photography. I will beforethe pandemic travel was fun,
like I like traveling. And Ilike traveling specifically to
(51:29):
eat. So I like like takingphotos of food. So that's always
fun. And yeah, that's I prettymuch just work though. And
that's mostly it. So I go to bedat midnight and I wake up at 4am
every day. So sorry, hoursasleep.
Josh Bolton (51:45):
And slough mad props, I six hours, my minimum
five minute push shit.
Unknown (51:54):
But someone for so long, I can't even help it.
Josh Bolton (51:58):
Technically, like, I don't know where the off
switch is now. So someone that'sinspired by you that wants to go
down a similar path. Traderinvestor, helper business,
investor trading, and gettingthem funds. What are some tips,
tricks or advice, you give themthe start down a similar path.
Unknown (52:20):
I would invest time in just properly researching and
planning out your business.
Really making sure that thebusiness you're starting is one
that will add value to themarketplace. Just because the
internet the world that we livein, it's so competitive, you can
avoid a lot of difficulty byjust having proper planning from
(52:44):
the very beginning. And makingsure that you're actually
bringing something that isunique to the market. The other
thing I would make sure Ifocused on is handling your
personal credit, I know thatthere's this whole narrative out
there about Oh, you don't needyour personal credit, and you
can use your EIN make sure youhandle your personal credit, the
amount of opportunities thatyou're limited from just because
(53:06):
you don't have access to money.
It's It's astounding. And yourentire business your entire life
will just be dramaticallydifferent in how you go about it
just because you have the youhave access to the funds and the
the credit that you need. Andnot having it just makes
everything unnecessarilydifficult. So that would be the
(53:28):
second thing. Yeah. And I guessthe third thing is just make
sure that you are perseveringand just having discipline, and
not just trying to run off ofthe fuel that of motivation,
just because motivation byitself is a pretty weak fuel. If
you have something that is verydisciplined, meaning that you
have structure in order, you'resaying, Hey, these are the
(53:48):
things I'm going to do. And I'mgoing to do them and I'm forming
the habit of actually completingthings, you're going to be more
successful, a lot of businessowners, they will start, but you
don't make it to your five, notjust because you ran out of
money, but because you ran outof that motivation and energy to
keep going. So make sure thatyou have discipline because that
is what gets you to do thethings that you're supposed to
(54:10):
do even when you didn't want to.
So that's that's what I would Iguess, recommend to a business
owner, all the rest of thisstuff. I mean, yeah, it's pretty
easy to figure out. Don't beafraid of breaking stuff. I
break something once a week, youknow, I fail at least once a
week just on purpose. I mean,oh, I wonder what happened. If I
do this, that didn't work out. Iwill not do that again. Or go
well, that was that was veryhelpful. Let's do more of that.
(54:31):
It's okay, this isn't schoolwhere the teacher will give you
a lesson then give you a testand then give you a greater than
that greatest kind of the end ofit. In life. You get the test
first and the lesson after sojust you know, just do it. Just
do some stuff fail. It's fine.
You'll figure out ways not to doit and you'll be successful as
you continue figuring out waysto avoid those problems and just
(54:57):
be better. So that's it
Josh Bolton (55:00):
I like how you said life is the test and you get the
lesson at the end. That was Thatwas deep. I like it. Yes. Well,
thank you. So it's, it's true.
It is. So whoever made it thisfar and where can everyone
contact you at?
Unknown (55:20):
Yep, so you can go to my business credit.com I
deliberately made that namesuper simple, that domain cost
me a lot of money. So by allmeans, please visit it. But you
can go to my business credit.comI believe in providing a lot of
resources to people, justbecause I do genuinely want
people to get funded. Sounderstand that 90% of the
(55:44):
people that we talk to, they donot qualify. But our job is to
help you get qualified. So findout what you're missing. And
then work on those things. Andthen try again, in 90 days, when
you're more attractive to thebank. Also, do not take the
first money that people offeryou generally is not the best.
And I say that because ifsomeone is just willing to take
(56:05):
the time to show you, hey, youqualified for this, but you
really could have qualified forthis other amount if you would
just fix these little things.
fix those things and then workwith someone. Just slow down in
how much money you need and howquickly you're trying to get it
because you can fix yourproblems and then you'll be in a
better position. All that is onmy business. credit.com
Josh Bolton (56:28):
That's awesome.
Thank you so much for everythingagain.
Unknown (56:33):
No problems. Pleasure to be here. So pleasure
Josh Bolton (56:36):
and honor
Trading contracts.
(00:00):
Are you trading options?
Unknown (00:04):
contracts on futures?
Yeah, but I'm basically the s&p500.
Josh Bolton (00:12):
Wow. Okay. That's cool. That's cool. I mean, I
trade options. I do you know,Ken Roberts, the option trader
from the 90s. No. Dude made likehundreds of millions of dollars
off the futures market. Heshowed me his tricks of options
too. So
Unknown (00:33):
wow, that's cool. Yeah, that's because I've been doing
options last year.
Josh Bolton (00:38):
Okay. Yeah. Yeah.
Unknown (00:42):
But after Russia invaded Ukraine options kind of
got a little stressful because Iwas doing the iron condors,
which was a spread. And so theprice had to stay in between two
points. And so the market gotvery volatile. And so I was
like, No, I need something else.
So that's what moved me over tofutures, which was just
wonderful. I don't care if themarket goes up or down. I make
(01:02):
money either way. So it's a
Josh Bolton (01:07):
you'll have to listen to news, you just look at
charts and be like, Alright, itlooks like it's going down
today.
Unknown (01:12):
Yeah, I actually. So I actually built a bot, to measure
the market for me. So I just dowhatever the bot says.
Josh Bolton (01:21):
Python, or?
Unknown (01:23):
No. So in Ninja Trader, Ninja has their own little
script that you can modify. Andso you can basically say, like,
hey, based on these indicators,and these parameters, this price
point, if all of these thingsmatch up in this formula, then
go along. If they don't, thendon't do anything. And if they
(01:44):
are the opposite, then go short.
And so sometimes when you're atrader, you can I guess you can
be hopeful, like, Oh, I thinkit's gonna go up, I feel like
it's gonna go up or whatever.
The bot is just the math, if theif the indications were there,
it takes the trade if they werenot there, it doesn't do
anything. So it's more
Josh Bolton (02:05):
stable. It is, I have a so use track and trade as
my treating provider, and theyhave a bot that comes with it.
And it's annoying, becausesometimes they'll go, right? I
think it was, like, give me aspecial like, 1000 bucks for
everything, including the pilotwas like, hey, that's awesome.
(02:27):
I'll take it. But uh, that it'sannoying to look at because he
goes off the like movingaverages and all that and I can
get more specialized. But at mybest rule, it took anywhere from
two weeks in between trades, andI'm like, I'm sitting here
sweating bullets again. Oh, itdoesn't go the wrong way.
Unknown (02:47):
Yeah, I felt my I thought my boss was like, long.
So my bot only takes trades whenit's in a certain level on the
mark on the on the chart. Sothere's like the volume weighted
average price. And so there arebands. So there's like level
one, two, and three. And so mybot will only take the trades
when it's in like level two.
Because when it's like inside,inside those bands, it can be
(03:09):
very volatile, going up anddown. But once it's gone to a
certain level, it stays there.
But sometimes I'm looking at it.
It's like, Oh, that would havebeen such a good trade. But it
just wasn't, wasn't guaranteed.
So it doesn't take it. So yeah.
It's awesome. It's interesting,man. That's very cool. That's
super cool. Do I have a delay onmy line? Because you've got a
(03:29):
pretty significant one. Not sureif that matters for recording
later.
Josh Bolton (03:36):
It seems like you're coming through just fine.
On my end. It records whatevermy screen says.
Unknown (03:42):
Okay, okay, good, good.
Just making sure.
Josh Bolton (03:45):
I'll say I'll check it later. If not, I'll just got
to sit there and chop everythingand paperwork. All right. So I
was thinking, Can we get a quickintroduction of who you are and
what you do?
Unknown (03:59):
Sure. So my name is Bob Hunter. And I am the CEO of
Oxford Pierpont, and also mybusiness credit, which is our
newer business that doesbusiness financing for small and
medium businesses. And thereason that there are two is
because Oxford is verycorporate, for larger
(04:19):
businesses, for businesses thatare more, I guess, office based
think lawyers, mortgage brokers,bankers, accountants, things
like that. My business credit isway more friendly, way happier
looking brand. And we helpedsort of small and medium sized
businesses to get money. And thebiggest problem that we're
(04:42):
trying to solve there isunfortunately about 90 roughly
90% of new business owners willnot make it to year five. And
the biggest reason that theywon't is because is that they
are undercapitalized. So that isthe that is the single biggest
problem that we're trying tosolve. So that So what I do?
Josh Bolton (05:02):
So let's say like I open a business, for easy sake,
an air conditioning company, Ihave all the experience, but I
don't have the capital, would itbe something, you'd help me
figure out the financing forthat?
Unknown (05:16):
Yep, so we'd help you figure out the financing. But
more importantly, we would makesure that you're doing all the
things that you need to do to beattractive to a bank in the
first place. So many businessowners what they do is they open
their business, and they'rethinking about everything in the
context of how do I provide thebest service or the best product
(05:37):
and you know, get more customersmake my customers happy? How do
I hire people? How do I grow allof these things that they're
thinking about from an operatingperspective, they're not really
thinking about the businessadministration side as much. And
so what ends up happening isyou've got a business owner
who's ready to grow, maybethey're ready to hire more
people, or acquire new products,or maybe even buy another
(05:59):
business, but they do not havethe, the history to justify
giving them money. So they mighthave cashflow. For example,
let's say that your business isdoing really well, you end up
producing $20,000 per month. Soon a cash flow, you know, from a
cash flow perspective, you lookwonderful. But then we find out
(06:19):
well, you're bringing in 20. Butin your bank account, you're
actually only keeping about19,000 or less. So really,
you're spending all of yourmoney. So if you're talking to
the bank now and you say, hey,bank, I need $100,000, the bank
looks at it as well, you're onlyreally able to spare $1,000,
(06:39):
just from your current revenue,we get that you need the money,
but we need a little bit morecushion and security. So that's
why they have something called abank rating, where the bank is
basically measuring what youraverage account balance is over
the last 90 days. And thatnumber needs to be 10,000 or
higher. So little things likethat. We try to make sure
(07:00):
business owners areunderstanding, you've got to run
your business, but you've alsogot to build your business. So
that later you're able to havethese conversations with parties
that are able to give you money.
And there's a long list of them20 things Be more specific. So
Josh Bolton (07:16):
Oh, wow, that plenty of talk about that. But
I'm just I'm just thinking ofone. And because it probably
popped up in other people's headlistening to this, does that
mean that I have to increase myprice, so I have more cushion.
But that could scare offcustomers kind of thing.
Unknown (07:28):
It's it's more about how you're using, how you're
using your money. So forexample, with the bank rating,
right? Let's say that yougenuinely did need that money.
Because obviously, you did inthat hypothetical example, if
you brought in 20, and you werespending 19, I'm sure you
weren't going out and you know,paying a monthly note on a
Ferrari, you know, you wereprobably paying your employees,
(07:53):
we were probably paying foradvertising or anything for your
business. So what you want to beable to do is instead of just
having that cash always beenspent, have a revolving line of
credit a business line ofcredit, that is cycling every
month, that is secured by acertificate of deposit. And that
accomplishes two things for you.
One, you took your original cashthat you had, you put it into a
certificate of deposit, which isa high interest savings account
(08:16):
at your bank. And then your banksaid, okay, cool. So we've got
this money here is growinginterest, you're now able to
say, Well, hey, I want to usethat CD, as collateral for a
revolving business line ofcredit. So now you've got two
sets of $20,000, you'd have theone that was your original cash,
which is now safely sittinginside of that CD. And now
(08:37):
you've got $20,000 of revolvingmoney, okay? If you do not pay
that $20,000, like, let's saythat you spend up all the money,
and the following month, youdon't do anything to bring your
balance down, while the bankisn't as worried as they
normally would be. Because theywill just simply take the money
out of your out of your CD,because that is your security,
(08:57):
that's your collateral, if youend up defaulting on that. So it
makes the bank feel better. Byhaving that money safely sitting
in that CD bearing interest.
That means your bank rating isnow going to be a little bit
higher, because your bankbalance is always staying at
least the same or higher as itis increasing. And finally, by
having a business line of creditat the bank, you're now more
(09:20):
attractive, attractive becauseyou're able to go to another
bank later and say, Hey, I'vegot this account with Bank A,
it's in good standing, I pay mybill. I'm always keeping the
money revolving like it'ssupposed to be. Give me more
money. If we take that a stepfurther, when we're talking
about how to bring down theseexpenses, bringing it to a
(09:40):
vendor, instead of just spendingmoney outright. Let's say that
you are, I don't know spendingmoney on gasoline, right? You're
driving around, maybe you'redriving them to your worksite
maybe you're delivering stuff orwhatever it is. Get a gas card.
That's another example. Maybeyou're spending money on
recurring bills like you've gotsome software bills where you
have a payroll bills or whateverit is as recurring, instead of
(10:03):
spending that as just cash, geta special credit card just for
those kinds of revolving bills.
So it's not necessarily aboutonly about just reducing the
costs, which I mean, if you can,by all means do. But it's about
spending the money in a way thatis wiser, and allows you to get
multiple uses of the samedollar. So I don't know if that
makes sense.
Josh Bolton (10:26):
It does for me, but I wanted to ask on a question, I
didn't think how would I, let'ssee, I formed my LLC, I buy my
virtual real estate place, myLLC there. How would it convince
a bank to be like, I know I'mnew, but can I get a $10,000
line of credit? How would thatwork?
Unknown (10:44):
So there's, so the banks are going to want to honor
these three things. So you'veeither got to have cash flow,
which generally needs to be10,000 or more, or you've got
collateral, which in your casewould have been the house, or
you have good credit. So you'vegot to have two of those three,
any two, but you need at leasttwo of those three, if you are
someone who has good credit, andby good, we mean a score of 680
(11:07):
or higher, then you're able tonow leverage that good credit
history and say, Hey, bank, giveme give me money. And the other
thing too, is you still needsome kind of cash flow to back
it up. Because remember, youneed to now if you've just
started a business, you mightnot have cash flow yet, we do
offer startup financing, that isa type of financing that we can
(11:28):
give a business that has noteven been opened yet. And it's
based on your personal income atthat point. So the bank needs to
verify in some way that themoney is secured, either because
you're putting up collateral, oryou're putting up not that
you're putting up cash, but thatyou at least have cash, or
you've got, you've got goodcredit. So in your case, house,
(11:50):
and your credit would be wouldbe your would be more attractive
features. There that case. Now,if you are going to be also
specifically talking about realestate, you can also go and get
private money loans. So we dooffer that as well, a lot of
real estate investors, what theywill do is a lot of fix and
(12:10):
flips, they'll go buy a propertyat one price, they will put a
certain amount of repairs intoit, and then sell that property
at a higher price. We providefinancing for that as well up to
$2.2 million.
Josh Bolton (12:26):
So the person then must have a very good plan and
very good credit history for youto consider something that I
Unknown (12:34):
Yeah, so credit is going to be the biggest thing.
There's so many people who havethis misconception that and I
get why because people say thisonline all the time, oh, you can
go and just open an LLC. Andyou're going to be able to go
and buy, you know, an Escalade,or f150 or all this stuff just
(12:54):
because you have an LLC or toopen a week ago. And it does not
really work like that. Theystill need some kind of
verification that you have themeans to pay, whether it's
through your credit history asevidence that you've paid other
people on time and responsibly,or if it's through your personal
income that verifies that you doat least have access to it to an
(13:17):
income that justifies the amountthat you're looking for. Or if
the the thing that you'regetting, right, so the
collateral that you're gettingin this case, being the house is
worth enough to satisfy theloan, if for some reason you
defaulted. Everything that thebank asks you all the different
questions, it's really only toanswer one thing, and that is if
we give you money as the bank,will you as the borrower pay it
(13:40):
back? If the answer to thatquestion is yes, then the bank
is very happy to give you allthe money that you need.
Josh Bolton (13:47):
Interesting. So let's say hypothetical, because
you definitely a guy that couldtell me the right answer. Let's
say I get a bunch of backersprivate investment, I formed my
LLC, but I get for accreditedinvestors to give me 200k. Total
is that then when I could takeit to the bank and say, I know
(14:07):
this is a new LLC, but I have$200,000 worth of cash from
backers. I'd like to put thisdown as a payment is that can
that work?
Unknown (14:16):
After about 90 days, it definitely can. The reason that
I say 90 days is because theyalways ask for about three
months of history, you still cango ahead of time, but it's more
guaranteed after 90 days.
Josh Bolton (14:29):
So then I would have to prep my investors say I
would need to form my LLC puteverything in, keep it there
legally, 90 days, and then I canwe can start the process right?
Unknown (14:40):
The 90 days just makes it more ideal. So you can
definitely like let's saytoday's Tuesday, I'm gonna go in
and take this 800k that I havein one straight to the bank and
ask for more money. Youcertainly can. But there's still
a possibility that you can getdenied. Whereas in 90 days of
you showing that hey, I've hadthis money and it's stable. It's
Not money, that is just a quickblip, and then it's gone kind of
(15:03):
thing. Because again, you got tothink about it from the bank's
perspective, are they going tobe safe giving you more money,
right? After them asking foryour last three months of
history, and now your bankrating is, you know, is very
high. They're very happy. It'sway easier to get the money,
especially if on top of that,you've also got a decent credit
Josh Bolton (15:24):
or credit partners that will say, We're partners.
Okay. That was really helpful.
Yeah, that would have been, asone of those I've been thinking
of getting into real estate.
Now, I know you're the guy thatalso called you if I'm gonna do
it. But um, oh, yeah. We had it
Unknown (15:40):
was just a website, too.
Josh Bolton (15:42):
Oh, yeah. I liked it animation, if you scroll on
your website?
Unknown (15:49):
Oh, yeah, thank you.
There's a page on our websitethat goes into more detail about
real estate specifically. Andthere's an animated video as
well, where we talk aboutexactly what what is needed to
get real estate financing. Sowhere you know, you go, you get
the property, you need to findout what property you want.
(16:09):
Basically, find out what repairsit needs. If you decide to get
into the fix and flip side ofthings. This cannot be an owner
occupied property. And we workwith private money lenders to
get you that money. So it's avery, very good way to get
access to capital and get intobusiness very quickly. If you
know what you're doing. Ofcourse, you still have to put
(16:30):
the legwork in of actually, youknow, doing flipping the
property. Yeah, they're doingright.
Josh Bolton (16:38):
Yeah, either you're doing it yourself, or you're
hiring a good contractor to doit. Either way, you're gonna
have to do something. That'sinteresting. So what exactly is,
so I'm sure we hit a couple ofsteps, they were talking about
one of the the 20 steps, whatare a few that I might miss that
I'm not familiar with?
Unknown (16:57):
Sure. So a few things that people will just kind of
overlook, or don't even realize,matter. Let's start with the
basics. So the things that arecalled a lender compliance, this
would be things like, if you arenormally putting your cell phone
down, you know, your personalcell phone number on these
applications for the bank, youreally need to be putting down a
(17:18):
business phone number that aregoing to check, this would be a
411 registered business phonenumber. Same with your address,
you need to make sure that youhave a dedicated business
address, not just your house,even if you have a home office
still need a dedicated businessaddress. Another one is your
email, you might be putting youknow bob.hunter@gmail.com When
(17:39):
it should be Bob dot Hunter atOxford pierpont.com. Basically
saying that you need to makesure you've got your name at
your business.com or dotwhatever, as a legitimate email
that just further gives the bankcomfort that you are a real
business, right. You also wantto make sure that you'd have a
website for your business, theywill check that basically
(18:02):
they're trying to find out. Ifyou are actually a business that
is legitimate and has been inbusiness for some time, they're
looking for that they're lookingfor your state registrations,
they want to make sure thatyou're not only registered with
your local Secretary of State,but you are also in good
standing and in compliance withSecretary of State. A few other
(18:24):
things, if you are going to begetting higher amounts, they
would like for you to be inbusiness for at least two years,
they would like for you to haveat least $10,000 per month and
in recurring revenue coming in,they'd like for you to have a
bank rating of five or higher,that means that you are keeping
at least $10,000 per month inyour account or more. There's
(18:45):
there's a long list. Butbasically all of these things
help the bank answer that onequestion of if I give you money,
will you pay it back? Every timethat the answer to one of those
questions is no, that increasesthe likelihood from the bank's
perspective that you're going tobe someone who will default on
the loan.
Josh Bolton (19:06):
Sir, I'm looking around like I've tried to
process everything like he'sgiven me gold right now. And
remember this, oh, well, we're
Unknown (19:12):
actually going to be putting all this on our website
for for free for everyone in afew weeks here, so it'll be
there for you.
Josh Bolton (19:20):
Awesome, then be checking in your site. And this
is awesome. So that like alreadythe I knew the business number,
but I didn't because I wasthinking like oh, just buying a
nerd cricket number will cricketthe mobile company listed then I
would have to register itthrough my okay. This is good
stuff.
Unknown (19:39):
It's there are plenty of companies that will give you
a phone number and there'snothing stopping you from
forwarding that number to yourcell phone. But it still needs
to be an actual business numberthat is registered. Like that is
like 411 or excuse me 411registered like that is just
your business line. Banks reallylook for that.
Josh Bolton (19:59):
form one one registered, okay, is there like
a specific site I would need togo to for that
Unknown (20:05):
there are plenty. So um, on our website, there is a
Resources tab right on thehomepage. And in those
resources, you'll see where itsays marketplace, there are a
lot of phone companies that werecommend, like go to
RingCentral manage any one ofthose can get you a number for
the address, you can actuallyuse I postal, but I postal
(20:26):
actually provides phone numbersas well. So you can kind of kill
two birds with one stone there,you can find links to all that
stuff in our website underResources. Under resources,
you'll also find very helpful,we list out the vendors that you
might be able to use to getvendor lines of credit, we tell
you exactly what credit bureaus,they report to whether it's done
(20:46):
in Bradstreet, Experian, orEquifax. And we tell you if they
have any net terms, so like net,15, net 30. Net 60. And for
those of you who do not knowwhat net terms are, is basically
where the vendor says, Hey,we're gonna give you the product
or the service today, and youhave 15 days to pay in the case
of Netflix team or you've got 90days to pay in the case of a net
(21:08):
90. Basically, you want to makesure that your bill is paid in
full by whatever that term datais. That way, you're always in
good standing with them, youneed 15 accounts total on your
credit report. And those vendorlines of credit will help you
get to that number 15. And makesure you keep them all in good
standing, then boom, your creditscore your business credit score
just slowly inches up.
Josh Bolton (21:31):
Something these vendors or doesn't matter in
particular, which vendor or it'sjust 15 vendors in general,
Unknown (21:38):
the wall not even just a team vendors, it can be a mix
of credit cards, business linesof credit and vendors for a
total of 15. When it comes tothe vendors, the main thing that
matters is that they actuallyreport to the Bureau's if they
don't mean that doesn't meandon't work with that vendor.
It's just so you'd have to beconscious of the fact that
working with that vendor isn'treally going to help you from a
(22:00):
business credit buildingperspective, because no one's
reporting.
Josh Bolton (22:04):
Good points. Yeah.
But it's like maybe it's one ofthose, they're hardworking, and
they're trustworthy, but they'renot going to necessarily tell
the others about the creditbetween us.
Unknown (22:18):
Exactly. Exactly.
Exactly. And that mean, vendors,I mean, that can be something as
simple as a gas card orsomething as complicated as, I
don't know, maybe you sell Tshirts, if you've got a t shirt
vendor that's always giving youyou know, those products, or
maybe you manufacture something,and instead of just buying all
of your stuff from varioussuppliers, you're taking the
extra time to say to eachsupplier, hey, do you all report
(22:41):
to Dun and Bradstreet or Equifaxor whoever? That way you at
least know that this particularsupplier when you're buying for
them from them, you're stillgonna get credit for it from a
business credit perspective?
Getting again, yet another useout of every dollar.
Josh Bolton (22:59):
Right? Yeah, it's like, maybe you have like the t
shirt analogy you gave earlier.
Maybe you have one t shirtwholesaler that gives you an
amazing deals, but he doesn'treport like the savings is worth
a sack. So you're not gettingthe double hit but
Unknown (23:13):
Right, right. And I mean, it's, it's one of those
things you kind of have to dolong term math for because you
might be saving money today. Butmaybe by having a vendor who was
actually reporting and boostingyour business credit score, you
might have been able to getaccess to more money later. So
you just kind of have to weighthe pros and cons of that. But
that's part of having abusiness. Right. It's part of
(23:33):
it. Right? That is part of
Josh Bolton (23:35):
the plan. Been for some,
Unknown (23:41):
but for some Yeah. As soon as I said, I realized,
well, that doesn't sound veryfun at all.
Josh Bolton (23:47):
That was a joke.
Man. So yeah, that'sinteresting. So how, let's say,
I do get my LLC, I go through Ipostal and get everything out
who would ever talk to you forthe grass gas card because you
bring that up a lot?
Unknown (24:06):
Well, the reason I bring up the gas card is because
I live in Atlanta, and you can'tget anywhere without a car in
Atlanta. I mean, I guesstechnically they have the bus,
but the bus takes forever sopeople almost always have a car
for the most part. So like it'slow hanging fruit, because it's
money that you are almostguaranteed to be spending
anyway. So if you were gonnahave to spend that money
(24:28):
regardless, you might as well begetting credit for it. So if you
are on our website, you click onvendors under the under the
resources tab. You can filter bygas cards, and you'll see
there's like you know, all yourbig gas stations Kwik Trip is
really big down here. Youbasically apply for that card
(24:49):
and now whenever you're fillingup, you make sure that you
always use that gas card andjust like any other credit you
pay it at the end of the monthin full. Always pay your bills
in full that matter. was a lot,but you paid in full. And now
great. Now you've gotten tousers out of the money, not to
mention you're able to delayhaving to pay in the first
place. So.
Josh Bolton (25:10):
So when you say pay in full, let's say I did $80,
Phillip of my tank, what I paidthe full 80 off, or the minimum
a request for the month.
Unknown (25:20):
Because I've heard if you paid, I would never
recommend paying the minimum.
Okay? Here's why I say that. Youwant to make sure that your
utilization is always as low aspossible. And so it's great to
have the benefit of being ableto delay a payment. But people
get into trouble when they startpaying the minimums because now
balances start to add up.
(25:42):
Because now you're carrying overthis month's expenses into the
next month. And if you have alimited amount of money as your
resource, Will, you're settingyourself up for failure, because
at some point you're gonna runout, it's better to only limit
yourself to money that you aregoing to spend anyway when it
comes to credit. Because let'ssay that you are already going
(26:03):
to spend $80 on that, Philip,just pay that full $80 Don't get
don't don't do the partial, Iknow that people sometimes do it
like Oh, I'm just gonna pay theminimum, you end up incurring
interest now, you end up pissingoff your vendors and running the
risk of, of I guess tarnishingthose relationship relationships
because you're not paying yourbill as agreed. And you just end
(26:25):
up running into problems. Andthen you're also taking more of
a personal credit approach tosomething that really should be
handled as business credit. Sodoes that make sense?
Josh Bolton (26:38):
It was probably something like a Grant Cardone
talk or whatever, where they'relike, only pay the minimum, one
bike, that doesn't sound smart,but a lot of people and I keep
saying so I guess my favoritething.
Unknown (26:50):
I mean, you know, I always say only stupid people
know everything. So that's agood, I definitely would not, I
definitely would not disagreewith Grant Cardone in that way.
But I will say from personalexperience, and just what I've
seen, people have this stigmaabout credit in general. And it
really has a lot to do with howcredit gets handled. So let's
(27:13):
say that we're talking aboutpersonal credit here, okay, you
might have a credit card, let'ssay that your credit card has a,
I don't know, $10,000 limit,okay. And so over the course of
a month, people will swipe,swipe, swipe, and all this
stuff, then the bill comes andthey've got a minimum payment,
they pay that, but you stillhave this big balance. And now
you've also got interest addedto that, because he carried over
(27:35):
a balance. And you might stillneed that credit card, and
you're still swiping and buyingstuff. And now you're just kind
of setting yourself up with ahole. And now your credit score
starts to go down because you'vegot this balance that you're
carrying over. The thing aboutpersonal credit is that usually,
that bill is being paid by yourpersonal income, which is often
(27:56):
limited for most people, it'swhatever your job pays you in
most cases. So that's the amountof money that you have to spend
on paying down any credit cards.
With business, it's a little bitdifferent. Because with business
number one, the thing thatyou're buying probably is
something that is an asset, nota liability, meaning that it
makes money instead of justcosting money. So that's the
first difference. The second iswith a business, you're able to
(28:19):
generally make income that youcan then use to pay the card
back. And so or not even justthe card in this case, but the
debt in general, you're able totake that money from the
business and now pay off thatdebt because that debt has now
produced money with personalcredit. Debts don't usually
produce money they usually arefor buying things. So that's why
I say I wouldn't be carefulabout taking personal credit
(28:41):
habits like only paying theminimum over to a business, a
business credit card or businessline of credit whatever it is,
just because it's kind ofsetting you up for failure down
the road, at least in myopinion. Now again, other people
might think differently, but Iwould not form that bad habit if
I can help it
Josh Bolton (29:03):
No, it's a it's a very good point that you bring
up because it I've always paidaggressively on my personal line
of credit. Just I don't likeseeing debt so I just like make
it go away as fast as possible.
But we have like for thebusiness like different
entrepreneurs I've had on theshow they've even said to like
yeah, we we took it we maxed outall our credit cards, cash
(29:23):
advanced everything. I did thatonce by accident and I'm like
God the interest in seen on cashyou're bouncing. Yeah. But I'm
sitting here going. They'relike, Yeah, we just paid the
minimum enough to not make thebanks angry with us until we hit
it big Mike. What if you didn'thit a big though? And he's like,
Well damn, screw that.
Unknown (29:44):
Yeah, yeah. I don't get me wrong. I get why people would
do it. But it's your it's almostlike you're in Vegas and you're
gambling with your future atthat point. So if it's a habit
that you can avoid just avoided.
Again, I understand why peoplewould, especially if money's
tight, but you're borrowing timein that, from that perspective,
(30:07):
it might have been better toslow down and revise your
marketing strategy or yourbusiness plan or your operating
strategy in a way that producesmore revenue so that you don't
really have to play that riskygame.
Josh Bolton (30:24):
Yeah, I agree. And that was a big one for me.
Because that's that was thefinal fall for him. I was the
guy that set for multiple he wasthe final one. I asked him. I
said, so what happened? If youdidn't hit it big? He like, oh,
have we so scared? He's like, Ihe's like, I've already had
like, two bankruptcies? And I'mlike, that's not good. Yeah,
Unknown (30:44):
it's a it's a very risky way to do business. I
mean, it does work in somecases. But it's a very risky
start to the process.
Josh Bolton (30:54):
Yeah, it's like I tell a lot of people and it
sounds like you're very similarmindset is like, just bootstrap
it, make it work. Work withinyour means. And then as you
grow, just throw everything backinto it.
Unknown (31:06):
Right, and I mean, use other people's money whenever
you can. But there's adifference when you're dealing
with people in the sense of likeinvestors, right. So like, an
actual somebody gave you moneyinstead of an institution, that
would be a bit of a differentsituation. Usually, an investor
(31:27):
has already understood where youare financially in your
business, and what you'replanning to do with the money.
They will also, in many cases,be giving you advice on what to
do with the money, it's not justthe money that you get, but
often you get a little bit ofcounsel, because the investor
they want just like the banks toget their money back if they
gave it to you. And there's alsonot always a whole heap of
(31:51):
interest that is rolling overevery month that you do not pay
down your balances when you'redealing with, with a private
investor. If you're dealing withmoney from an institution like
like credit cards, or a loan orsomething like that, unless
you're on some kind of terms,where it was 0% interest for the
first year or something, youknow, something glorious like
(32:11):
that, you always do need to beconscious of how much money the
money is costing you howexpensive that money is, right?
And if you can make that moneyas cheap as possible, and put it
to work, so that it producesitself as quickly as possible,
covers your debts, and you cannow expand and move on.
Definitely do that, even if itmeans slowing down, taking some
(32:35):
time to revise your operatingstrategy. And then starting
again. I mean, that's what Iwould recommend just being safe.
With money.
Josh Bolton (32:44):
Yeah, no, and we see everything you've presented
very sound up trying to lock itand keep it there. So then,
let's go back to thehypothetical was talking to you
earlier about the businesscredit, Blitz, is there certain
industries that you may not havethe best track record, but
(33:04):
because you're in aerospaceengineering, or tech, SAS
company? Are there certainbecause of that aspect? Is it
easier to get investors andfunding from banks that you've
seen,
Unknown (33:19):
it's easier. It's way easier for businesses that have
physical assets. So interesting.
Another way of putting it is,again, this still yet again,
goes back to that question thatthe bank says of, hey, if we
give you money, well, we get itback, the bank can feel better
about getting their money backis, if there's something that
they can sell off later. Let'ssay that you are a factory, you
(33:41):
might be selling off some ofthose heavy equipment assets
that you've acquired. That's waybetter for the bank, instead of
having, let's say, a digitalmarketing agency where there's
not really anything tangible. Ifyou go under, what can they
sell. So you see the differencethere. So that's why it's easier
to fund to fund I guess, thoseequipment, heavy asset heavy
(34:05):
businesses. So and it just kindof scales down. Now, there are
limits to that, for example,with trucking. A lot of people
will ask me, Hey, do you offerloans for trucking, you know,
Equipment Financing like that?
We do technically, but they'renot easy because the banks don't
like truckers simply frombranches and that a lot of new
(34:27):
trucking companies. They don'treally, they don't succeed very
often. And so there's a highrisk not to mention, those
trucks end up costing a lot ofmoney, not just after you bought
them but a lot of maintenance, alot of gas. There's a lot that
has to go into a truck. So howmuch the equipment costs after
you buy it is also a big factor.
Josh Bolton (34:49):
Right on that note of the trucking let's say I was
getting into more of equipmentrental, like trailers and small
box trucks. Would that be easierto for me to get money
Unknown (35:01):
I don't know if I would say easier because, again, if
anything happened with the moneythat the bank gave you, well,
what do they have to sell asassets? There really aren't any.
That doesn't mean that this is aproblem. It just means if we're
just talking about like, Hey,what is easiest for the bank
that have come and put it sothat that business where you're
(35:23):
renting, like Sprinter vans andbox trucks would be almost the
same as the digital marketingagency, both of them own nothing
really? Does that make sense?
Josh Bolton (35:33):
Okay, so that they look at the vans as more than
half value when you buy it.
After
Unknown (35:39):
for my lecture, so yeah, but you can say that,
yeah, at least you have anasset, though, at least you have
an asset. So it's not the bestasset, because it's an asset
that requires a lot ofmaintenance and money, but it's
still an asset, technically, youcan still sell the truck,
technically. Whereas if you'rerenting, we really don't have
(36:00):
anything to sell. But again,this also has a lot to do with
how qualified you are frombeginning because if you've
already got a let's say thatyou've already started a
business, you've been inbusiness for two years, and
you're already bringing inrevenue, with the rentals, and
you've protected your personalcredit. So you've got a 680
credit score or higher, it'sstill an easier conversation to
have. So I don't want to givethe impression that it's all
(36:23):
about the equipment, or allabout the purchase, only,
because that's just one factorof many that have to be
considered. on whether or notyou're going to defaults on the
loan.
Josh Bolton (36:35):
That's interesting.
Yeah. Because I would think ifyou have because trailers don't
usually, usually drasticallydeplete in value. I know if you
buy a truck, it's like a carwithin the first five years.
Like,
Unknown (36:47):
trailers. Yeah. I'm sorry, I didn't even hear that
part. I'm so sorry. It's okay.
Yeah. My, so my partner, sheowns a trucking company, you
know, give her a quick plug aglobal fleet logistics, and her
Yeah, her biggest, our biggestchallenge is, is getting the
people who do have the trailersand getting them as for drivers,
(37:10):
because they can take heavierloads, they make more money. And
like you said, the trailer isnot something that has to be
like, maintained all heavily, Iwas thinking just about the
actual truck, the vehicle on thefront end, that is where all the
maintenance and all the heavyexpense is coming in, I guess,
which is, which is definitely aproblem. But it's a problem that
(37:32):
can be worked around. Theimportant things here are making
sure that you're bringing enoughto the table, to to make
yourself attractive to the bank,so that you are bringing your
good credit, you're bringinggood cash flow, you are
bringing, you know, a goodhistory with vendors and other
creditors, you are making surethat your cash flow inside of
(37:53):
your bank account is healthy. Soeven if you are bringing in over
$10,000, that you're actuallykeeping a good portion of that
money, making sure that you'reactually registered properly, so
that you are attractive to thebank in that way that your SLS,
registration is healthy, and ingood standing, all of that stuff
that goes into whether or notthe bank wants to work with you.
(38:14):
So if you're thinking about itfrom that perspective of hey,
would I give me money, right?
Based on all these things, allthese different factors, then
you're able to just have aneasier conversation at the
outset.
Josh Bolton (38:30):
So then, yeah, it's more lay the proper foundation
down, and obviously scale andgrow but have the foundation so
when you do go on a year to tothe bank and be like, Yes, I'm
still new. I know this. Look atlook at my business how well it
is. So with all the bells andwhistles I've lined up for you
make it to the point like andthen they just the chairman's
(38:51):
are like, Alright, how much dowe give them?
Unknown (38:54):
Yep. It's so funny, because, you know, there's so
much money out there, and peoplewill easily give it to you, if
you can prove that you that youcan pay it back. That's really
all it comes down to. I mean,there there are people who will
go and like, okay, greatexample. Elon Musk just bought
Twitter for what was it like44,000 Billion US me not $1,000?
(39:27):
Yeah, we're billion. But hedidn't finance that all himself.
You know, he does have, he doeshave loans for that. He has
investors for that. And he hashis personal money in that as
well. So my point is, there'splenty of money out there that
can be gotten for you. If youcan just prove that you are
(39:47):
someone who is capable of payingit back, lowering your risk
overall.
Josh Bolton (39:53):
Well, I think also, there's a whole thing with Elon
Musk in that so did you hearabout his 55 billion payout?
Unknown (40:01):
No, I didn't. So like,
Josh Bolton (40:04):
a month after he bought Twitter in, I saw the
headline in my trading newsfeedsaying Elon Musk got paid out
from Tesla $55 billion. Like,that's why he kept floundering
during the summer, is he wantedto make sure he's going to get
that payout.
Unknown (40:19):
Because of that, yeah.
That will make way more sense.
Right learning.
Josh Bolton (40:25):
I love sir dude has so many layers to how he's
thinking it must be insane tolive in his own brain.
Unknown (40:34):
Yeah, I can imagine. I mean, he's, he's been a hero of
mine for quite some time. Soit's always interesting. It's
interesting. Even seeing thestruggles that he's having. Now.
I'm curious to just kind ofwatch this play out and how he
ends up overcoming the wholething with Twitter. So yeah,
Josh Bolton (40:52):
one of my one of my buddies, he's a coder, and he
even said he like this eithergonna be the best thing for
Twitter, or it's gonna be thedeath. We don't know. We'll
figure it out in like, two tothree years.
Unknown (41:03):
Yeah, I'd say two to three years is pretty accurate.
I mean, I feel like it's gonnago well, I think that they're
just whenever there's change,it's always difficult. And he's
not doing anything that anyother m&a person, or mergers and
acquisitions person doesn't dois one of the first things that
they do, they company getsbought. And they kind of cut the
fat, like right away, trying tofigure out who deserves to keep
(41:25):
their job, who doesn't, whatprocesses are making money,
which ones aren't. And overtime, things start to stabilize,
and things start to grow. Andthen you have a stronger
business. The big thing aboutTwitter, I think that is
fascinating is it's the firstkind of social thing that he's
had to really do. With PayPal,he had all the payment systems,
(41:48):
revolutionized. And then ofcourse, with Tesla, he had the
whole electric car industryrevolutionized with SpaceX. He
literally has space travelrevolutionized, because that was
kind of NASA's ballpark atfirst, and I'm just curious to
see how he would be able torevolutionize Twitter, or not,
not just Twitter, but socialmedia in that way. So we'll see.
(42:09):
Let's see.
Josh Bolton (42:10):
It'll be very interesting. If we might have a
chat in two years and be like,Wow, he did a great job. Yeah,
Unknown (42:16):
I mean, I feel like you will I mean, you know, it's, the
guy literally does rocketscience. So how hard would it
be? However, though, in hisevents, rocket science might
actually be easier than dealingwith people.
Josh Bolton (42:29):
Because the honest at times. You have computers and
science, you don't have to dealwith emotions, and we got
emotions. There's a whole hotmess with that.
Unknown (42:40):
Yeah. Yeah. And then I mean, he's still also has the
Optimus robot coming out, too.
So he's got a lot on his platewas all connects together?
Josh Bolton (42:52):
I'll say he also is like, involved with open AI. And
the neuro link thing too,because it was like six or
seven. Link. The boring company?
Yeah. Well, he has ever reallydone anything. They just made
the flavours, right. He's theguy. He's still
Unknown (43:14):
he made the flame throwers to to raise money.
Josh Bolton (43:18):
But obviously, I haven't heard anything about the
boring company sense. Or is itjust
Unknown (43:25):
something maybe about a month ago? Yeah, it's it's it
was. So I think the biggestroadblock that he's dealing with
are the state regulations.
Literally drilling, you know,through like drilling tunnels,
through states, I can imagine,is problematic. So I think
that's where his biggestroadblock is, with the boring
(43:46):
company. And I mean, the conceptitself, I thought was a
wonderful one. Like takingCalifornia for example, you're
supposed to be able to make thattrip from San Francisco down to
LA in like a quarter of the timeand be able to just, you know,
on this automatic track throughthis tunnel. Like I think that's
an amazing concept. If you canactually get the permission to
(44:08):
do it, because it may on thesurface is simple enough. But in
doing like in practice, it'sprobably a lot to deal with to
literally drill through realestate. Yeah,
Josh Bolton (44:23):
yeah. Then you have a whole dilemma of are you a
still in California or Nevada,like if you're going to Vegas?
If you get pulled over for somereason. Where's the lines?
Unknown (44:37):
Yeah, I think it's an I could be wrong. I think it's
supposed to be automatic. Likeit's supposed to be a track that
is pulling you. So like once youare at the start of it. It's
almost like you're on thisconveyor belt. Well, not a belt,
but you're basicallyautomatically being taken
through the thing at this reallyhigh speed. So it should be
(44:58):
safe, you know? Sounds likebasically high speed rail for
cars is what it sounds like.
Josh Bolton (45:03):
Yeah. Yeah, it's probably just gonna be the
politics in the lines of whereeverything goes is his biggest
problem right now. That'sinteresting.
Unknown (45:13):
I'm just curious solutionary though he if he
pulls it off, all right,
Josh Bolton (45:17):
he's gonna He's gonna be changing so many things
about just the human conditionin general. And then like three
or four generations later, like,oh, it's normal. And like, oh,
it was Elon Musk. Who did this,like Nikola Tesla's like, who?
Exactly
Unknown (45:32):
will talk about him the way we talk the way we talk
about Tesla? Yeah, only Tesladidn't actually get to be as
wealthy or as famous. So Elon isalready doing pretty much
pretty, pretty well.
Josh Bolton (45:47):
I'm certain he because he's, he loves reading
his sci fi books. He's He'sstudied Tesla. And it's like, I
am not going to be that guy.
I've just got to four.
Unknown (45:56):
I love I love Tesla. I mean, probably another was about
10 minutes. 1020 minutes. Yeah.
Cool.
Josh Bolton (46:05):
And then I'll slowly start winding it down.
But yeah, Tesla. Man, the thingsNikola Tesla has done for us is
amazing.
Unknown (46:16):
I love Tesla, because I mean, so I always in reading,
okay, well, I'm a bit of a nerd.
And so there's this thing that Iam always always interested in.
And it's atmosphericelectricity. And basically, you
have the ionosphere, which iswell above our atmosphere, that
(46:37):
is constantly dropping ions. Andso the sky is very, is very
positively charged, the groundis negatively charged. And so if
you're able to basically connectsomething to the ground, and,
and put it into the air, whereat every what is it? It's either
(46:57):
every mile or every meter, Ican't remember right now. But
the level of the level of chargegoes up, as the higher you get
into the sky. And so I waswondering, like I bet, people
could basically turn buildingsinto enormous batteries, where
the height of the building iswhat ends up making it possible
(47:19):
to collect ions directly fromthe sky, and use the ground that
the building was attached to asthe grounding force to
circulate, or to create acircuit of electricity
throughout the building,therefore making the building
one enormous battery. So I'vethought about that, though,
because of what Tesla does, andhow Tesla was trying to create
(47:41):
free energy for everyone. And Iwas like, man, there's all this
electricity out there, all thepieces are already there, it's
just a matter of getting themput together in a way that is
effective, without killinganyone, and without threatening
anyone as far as the economygoes, because some things that
are possible still are notallowed, just because they're so
(48:02):
disruptive.
Josh Bolton (48:05):
Yeah, that's interesting, because I read
three or four months ago of thisone place in Dubai, where
they're building like 480stores, it's gonna be the
tallest building ever. And withthe the data demonstration,
where it would be it would be upin the cloud. So would that be
close enough that I on few
Unknown (48:26):
words, so it's funny, because the ions are just
concentrated, the higher up yougo, when you're getting into the
clouds, that's why you know,you've got all this electricity
in the clouds, just because ofhow high it is. And so it's just
a matter of being able tocapture those ions. So your,
your building has to basicallyhave almost like spikes on it.
(48:48):
And so the spikes are able toattract the ions on their
points. And then the ion is ableto travel into the into the
grounding wire. And that'swhat's able to create that
circuit. So if you've got abuilding covered and enough of
those of those spikes, you'rebasically and I'm sure I'm
explaining this terribly some,some average versus electrician
(49:09):
or scientist is probablywatching this and thinking
that's the wrong answer. But thegeneral idea is simply taking
the positive ions connectingthem with the negative ions, but
doing it in a massive flow, sothat you're able to constantly
generate this, this circuit ofelectricity. So it can be done
quite certainly can be done. Andif not, then it'll mean you will
(49:31):
actually need to figure it out.
If not, yeah. Figure it out.
Hopefully, he doesn't, hedoesn't take everything. I
remember I was a kid I was in11th grade, I was in
environmental science class.
Right. And we were just talkingabout like solar panels and all
that stuff. And my first thoughtwas, oh, someone should just put
solar panels on the car and onhouses and just, you know, turn
like the shingles into solarpanels. They're both black.
(49:54):
Anyway, like, that was mythought and I was just a kid.
But sure enough, Elon did and Iwas like, Dammit, I should have
done something. I should havedone it. So I'm sure you will
because to me, it's like acommon sense thing, which means
it's probably common sense forsomebody else to.
Josh Bolton (50:12):
Well, like, for me the biggest one, it was meant to
be a joke, but I took it quiteliteral. And in elementary one
of the teachers like, oh, latraffic's terrible this snap.
Does anyone know how to cure it?
Like as it were, like six toeight year olds. I was like, why
don't we just dig a hole in theground and just have people
drive there. You can't get a carcrash if you're in a hole.
Unknown (50:33):
And look, now you've got your long doing the boring
feel on doing that. That'sfunny. It's funny, but it's very
true.
Josh Bolton (50:45):
Exactly. This has been an absolute honor and a
blast to be with you. I'velearned so much personally.
Thank you. We're kin. So mythree going out questions our
first one, other than work, whathave you been doing to keep
yourself busy during these COVIDTime for previous COVID times?
Unknown (51:08):
Oh, boy, I actually work 16 to 20 hours a day, every
day. So that is pretty much mylife. If I'm not working, I'm
doing photography. I will beforethe pandemic travel was fun,
like I like traveling. And Ilike traveling specifically to
(51:29):
eat. So I like like takingphotos of food. So that's always
fun. And yeah, that's I prettymuch just work though. And
that's mostly it. So I go to bedat midnight and I wake up at 4am
every day. So sorry, hoursasleep.
Josh Bolton (51:45):
And slough mad props, I six hours, my minimum
five minute push shit.
Unknown (51:54):
But someone for so long, I can't even help it.
Josh Bolton (51:58):
Technically, like, I don't know where the off
switch is now. So someone that'sinspired by you that wants to go
down a similar path. Traderinvestor, helper business,
investor trading, and gettingthem funds. What are some tips,
tricks or advice, you give themthe start down a similar path.
Unknown (52:20):
I would invest time in just properly researching and
planning out your business.
Really making sure that thebusiness you're starting is one
that will add value to themarketplace. Just because the
internet the world that we livein, it's so competitive, you can
avoid a lot of difficulty byjust having proper planning from
(52:44):
the very beginning. And makingsure that you're actually
bringing something that isunique to the market. The other
thing I would make sure Ifocused on is handling your
personal credit, I know thatthere's this whole narrative out
there about Oh, you don't needyour personal credit, and you
can use your EIN make sure youhandle your personal credit, the
amount of opportunities thatyou're limited from just because
(53:06):
you don't have access to money.
It's It's astounding. And yourentire business your entire life
will just be dramaticallydifferent in how you go about it
just because you have the youhave access to the funds and the
the credit that you need. Andnot having it just makes
everything unnecessarilydifficult. So that would be the
(53:28):
second thing. Yeah. And I guessthe third thing is just make
sure that you are perseveringand just having discipline, and
not just trying to run off ofthe fuel that of motivation,
just because motivation byitself is a pretty weak fuel. If
you have something that is verydisciplined, meaning that you
have structure in order, you'resaying, Hey, these are the
(53:48):
things I'm going to do. And I'mgoing to do them and I'm forming
the habit of actually completingthings, you're going to be more
successful, a lot of businessowners, they will start, but you
don't make it to your five, notjust because you ran out of
money, but because you ran outof that motivation and energy to
keep going. So make sure thatyou have discipline because that
is what gets you to do thethings that you're supposed to
(54:10):
do even when you didn't want to.
So that's that's what I would Iguess, recommend to a business
owner, all the rest of thisstuff. I mean, yeah, it's pretty
easy to figure out. Don't beafraid of breaking stuff. I
break something once a week, youknow, I fail at least once a
week just on purpose. I mean,oh, I wonder what happened. If I
do this, that didn't work out. Iwill not do that again. Or go
well, that was that was veryhelpful. Let's do more of that.
(54:31):
It's okay, this isn't schoolwhere the teacher will give you
a lesson then give you a testand then give you a greater than
that greatest kind of the end ofit. In life. You get the test
first and the lesson after sojust you know, just do it. Just
do some stuff fail. It's fine.
You'll figure out ways not to doit and you'll be successful as
you continue figuring out waysto avoid those problems and just
(54:57):
be better. So that's it
Josh Bolton (55:00):
I like how you said life is the test and you get the
lesson at the end. That was Thatwas deep. I like it. Yes. Well,
thank you. So it's, it's true.
It is. So whoever made it thisfar and where can everyone
contact you at?
Unknown (55:20):
Yep, so you can go to my business credit.com I
deliberately made that namesuper simple, that domain cost
me a lot of money. So by allmeans, please visit it. But you
can go to my business credit.comI believe in providing a lot of
resources to people, justbecause I do genuinely want
people to get funded. Sounderstand that 90% of the
(55:44):
people that we talk to, they donot qualify. But our job is to
help you get qualified. So findout what you're missing. And
then work on those things. Andthen try again, in 90 days, when
you're more attractive to thebank. Also, do not take the
first money that people offeryou generally is not the best.
And I say that because ifsomeone is just willing to take
(56:05):
the time to show you, hey, youqualified for this, but you
really could have qualified forthis other amount if you would
just fix these little things.
fix those things and then workwith someone. Just slow down in
how much money you need and howquickly you're trying to get it
because you can fix yourproblems and then you'll be in a
better position. All that is onmy business. credit.com
Josh Bolton (56:28):
That's awesome.
Thank you so much for everythingagain.
Unknown (56:33):
No problems. Pleasure to be here. So pleasure
Josh Bolton (56:36):
and honor
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