Joe:   Imagine getting $15 ,000 to $150 ,000 in funding at 0% interest for your next real estate deal, not in six months, not after endless paperwork, but in the next few weeks. So today I'm sitting down with business credit expert Ty Crandall to show you exactly how. Now here's why this matters. I see investors missing out on incredible deals every day because they don't have access to capital. They're either burning through their personal credit. They're splitting massive profits with hard money lenders or JV deals, partners, funding companies or worse, they're watching deals slip away entirely. But there is a better way and it's something most real estate investors completely overlook. So in this conversation, you're going to discover a few things. Number one, how to get business credit approval in 24 hours or less, even if you're a new investor. Second thing is we're going to be talking about strategies my students right now are using to access 0 % funding for 18 months. And number three, the one credit report that could be secretly blocking your funding, but it's actually surprisingly easy to fix. Plus, Ty's going to reveal why traditional banks aren't your best option anymore and what smart investors are doing instead. So if you're ready, let's dive right in, okay? What's going on, guys? Joe McCall, the Real Estate Investing Mastery podcast. Got another great guest today. His name is Ty Crandall. I was trying so hard to remember that. Sorry, Ty, but listen, I was on his show about a month ago. It seems like a lot longer than that, Ty. We're going to be talking about a really important topic that this applies to whether you're doing land or houses or commercial residential multifamily storage units, whatever. We're gonna be talking about business credit. Ty is a company called Credit Suite. We're gonna be talking about what they do. And I wanted Ty on this podcast because we're gonna demystify this concept of getting business credit. You might think that is intimidating. That is like, oh my gosh, I have to have a fancy office. I have to have 20 page business plan. And I need to have done a bunch of business and deals already to prove that I'm worthy to get business credit. And I think Ty is gonna do a really good job today this podcast, because I love what he's doing. He keeps things super simple. And we're going to break down the myths of like, that's not true. Really, this is what's important. And we all need to establish and think about business credit. Why? This is a very important phrase I want you guys to understand in your business. We need to dig our wells before we're thirsty. You need to dig your well before you're thirsty. Because if you've got a deal first, and then you need the money, it gets a lot harder to get. Because now you're chasing everybody, you're begging for money and they can smell that desperation from a mile away. But if you already have access to the money or you know where to get it or how it is and where to get it, there it is right there, your confidence level now becomes from a one or two, it comes up to a nine or a ten. And when you're talking to that seller, you're talking to the business partners or the buyers, the sellers, you have much more confidence now that you know you have access to the money. So when you're talking to that seller, you're making the offer. It becomes easy at that point when you Dig your well before you're thirsty. Ty, how are you?

Ty:   Yeah, I'm doing phenomenal. Thanks for having me.

Joe:   Where is your office at? Are you at home or in an office right now?

Ty:   I'm in my home office right now, I'm in downtown Tampa, I'm at the port in Tampa, so the Serenade of the Sea ship is literally right beside me, so that's where I am, it's right here in the port of Tampa.

Joe:   Nice. Cool. Tell everybody what it is that you do and what is Credit Suite.

Ty:   So we're the biggest of the business credit building space. So what we do is help businesses build credit profiles to scores and then use that credit profile and score as a way for kind of the business to fund itself. Meaning that we create a profile and then that profile is built where people will then issue credit to the business just because the profile is in place. And then that business credit profile helps make it way easier for any entrepreneur to be able to get more approvals and get better terms and get higher approval amounts.

Joe:   Okay, so what is a business credit profile? Is that different than a credit report?

Ty:   It's exactly the same as what you're used to as a consumer. It's just the business has it as well. So there's only two types of credit the United States you can really legally have. You have got your consumer credit profile that's linked to your social. And then your business has a business credit profile that's linked to the business EIN. Unfortunately, it doesn't just kind of happen when you build business credit, like if you go to check out at Target, they're going to offer you a 20 % discount to get their credit card and that's going to report on your consumer credit report. So in the commercial world, about 90 % of credit that were issued and vendors issue us credit or the money that we're extended, it never reports to a business credit reporting agency. So it takes a little bit more work to build a commercial or a business credit profile and score, but when we do it, it's what shows lenders and credit issuers that our business can pay its bills, that it's responsible. And when that happens, we start to get away from the need from personal guarantees and personal liability and personal credit checks to be able to get those approval decisions. We get more where we can rely on the business. The business can stand on its own and get its own credit financing without meeting us as an individual to come and help the business do.

Joe:   Okay, interesting. And how do you build your business credit profile?

Ty:   Well, I think the first thing that a lot of entrepreneurs look at and miss, which isn't just important for business credit, it's just general financing. I think a lot of business owners, statistically about nine out of 10, they're trying to get money out there or failing to be able to get money. Like I looked at a statistic the other day, it was like $3 .4 trillion of money that business owners have applied for and not been approved for. That's how much is then played at a given time that they're trying to get. And it all comes down to really foundational stuff. So in real estate, we understand that like if you're going to build a building, if you're going to build a home, you don't want to do it on an unsteady foundation, right? It all starts with a strong foundation. It's the same thing with a business. So the first thing to do is to build a business where it's actually legitimate, where it's credible in a lender's eyes. And this isn't just to make it easy to get loans and credit lines and credit cards. It's also what a lot of customers or potential customers that are going to do business with you are going to look for as well. So your business credit really comes down to building, getting an entity set up, an LLC, preferably, or a corporation, and having a separate address for the business and a separate phone number for the business, having a professional website for the business, and you do a great job with helping your students actually be able to get the websites, for example, for the business. So getting the website, getting a professional email address, not using Gmail and AOL type addresses, having a separate bank account for the business, having an actual license for the business, which is easy and cheap to get even in your county. So that kind of just scratches the surface of what's called basically lendability. And with your lendability, this is the sniff test that lenders and credit issuers have to see, are you just like a solopreneur just out there messing around with a concept or do you legitimately have a real business that would be worth lending money to that foundational stuff is the first step in really getting any kind of money, business credit or even funding as well.

Joe:   Cool. Do you help people create the LLC at Credit Suite?

Ty:   So we do. We help them. We help them build and get the LLC. We'll even help them get the LLC at no cost. And then we help them through every single aspect of setting up their business where they're actually lendable. As a matter of fact, we're teamed up with Dun & Bradstreet, which is like the biggest credit reporting agency in the world. And that's something where our score, I think, in the next 60 days will be on the Dun & Bradstreet's credit reports as well and on their dashboard. Because again, it's invaluable to be able to have a score that's related to how lendable your business truly is, the likelihood that your business will get money and then fixing the things where it won't. I think that's what's interesting in lending. I've been doing this for decades. What I found is that business owners just don't understand the game. We don't know what lenders are looking at. Lenders are pulling data that we don't know. They're pulling it from credit reports we didn't even know exist. They're using all this information to make decisions about us. We're giving them information. They're pulling different information. It doesn't match or it's incongruent or it doesn't make us look credible and that gets us turned out. Problem is that in the business world, lenders don't have to tell you why they turned you down. In the consumer world, if you're turned down because of your consumer credit quality, the Fair Current Reporting Act requires lenders to tell you that. But instead, this doesn't apply in the business world. So what's happening is we're getting turned down for things that are super easy to fix if we just understood that was the reason, and that lenders don't tell us. They aren't even allowed to tell us in a lot of cases. So when we fix those things, we just start to see approvals skyrocket. And so that's the first thing that we focus on and we also team up with D &B to help them and their clients do the same thing because that's the most important thing. Once you get a credible, legitimate business, you overcome the number one reason that accounts for more than half of all denials that really is why business owners are typically getting denied.

Joe:   I want to ask you what are some of the things that people have to fix, because I'm curious about that. But I want to first ask, because I wrote that down, I want to do ask you that. What kind of results do you typically see clients get when they start focusing on building their credit profile? So quickly can they get credit? How much do they get? And what kind of credit is it?

Ty:   So in the very beginning, we can take somebody and get their business set up with a Lendable right in the beginning. So usually less than a week, we're getting somebody established there and setting up a lot of people come to us then denied and do that step and then turn around and immediately start getting approvals. But when it comes to business credit building, usually the first week they start to get credit with vendors. So those vendors are places like let's say Grainger, right? Grainger sells all kind of familiar Grainger all kind of outdoor supplies. There's the Uline of the world that sells shipping supplies, the CEO created, it sells swag and things like this and go on and on. But these are very unique because of what they're known as the starter vendors. The starter vendors do two things. They will give you credit when you have none, which again, as you started to say, like it's all about being ready. Well, a lot of people don't want to lend you money when you're not established yet, but they'll give you the credit when you have none. But the difference maker is they report that credit to the business credit reporting agencies when over 90 % of vendors don't. So they're really key to the process because you're able to come in through that avenue, to be able to get these starter vendors, they report to the business credit reporting agencies, that establishes the business credit reporting score. Now, the alternative option is if you have good personal credit, the number one funding program we see for real estate investors is something we call Credo Line Hybrid. And with this program, it's basically credit cards that a funding source will go out and get you five, eight of these credit cards that are very high limits, 0 % rates. You could take the cash out of them at 0 % and a lot of them report to the business credit reporting agencies. So the nice thing there, especially for real estate investors, is they can get $100 ,000 in funding, pull it out at 0%, go buy their first properties, even including land. They can go out and use that money to be able to buy, then they're flipping or whatever it is. Sometimes it's on terms, or sometimes they're just coming out doing the flip. Then they're able to get their money back, pay off the debt, and repeat. Some more to the BRRR method. Those are the two methods to basically start building initial business credit. It's usually through these starter vendors or it's through the actual credit card stacking type of program where somebody is able to be able to get money, but either way, they've got these accounts that report to the business credit reporting agencies.

Joe:   Okay. So the vendor credit, is that like in -store credit or like not in -store credit, but that's like something you can only use with Granger or that other company you mentioned. Like you can only use this buying things from their store.

Ty:   You still typically start building business credit with these vendors and a vendor basically is somebody that's giving you credit to buy their own stuff. Almost every retailer in the country has a similar type of account that could be just for your business. So let's just look at real estate. Let's look at a Home Depot or a Lowe's or even a label ready or a HD supply. So all of these places will issue you corporate credit cards, but they don't require a personal guarantee. So you're getting them with no liability. you're also able to get them with no credit check. You're able to do this very early in the business credit billing process. So our clients are typically getting $10 ,000 to $30 ,000 accounts at these places, Amazon, I mean, EMSI, Nordstrom Offer, to show you how many of these retailers have it. They're usually getting that 30 days, 60 days in the process. Within 90 days or less, you're talking about almost every major vendor, which is most major retailers, you're able to get this credit with. Now per SBA, these limits are about 10 to 100 times higher than consumer credit. So I think this is a mistake I see a lot of entrepreneurs make is they're out there unless I'm getting in the land business. Well, then what I'm going to do is I'm going to come in, I'm going to use my credit cards and I even liquidate those cards to do it. But it usually requires a lot more money to be able to launch than they typically think it will. And those consumer credit cards 35 30 % of your credit limit is what percentage of your credit you're using like its utilization. So you start putting balances on there, you just tank your consumer credit scores. Well, business credit has way higher limits like 10 to 100 times higher per SBA. So our clients to get 10, 30, 40, $50 ,000 limits within 60, 90 days of starting to build a business credit card. So it gives them a lot higher limits on these accounts to be able to buy the things they need. Then from there, you graduate to fuel cards, cards at almost every major fuel station, repair mate, and SCAS of vehicles. You get auto financing without personal guaranteeing credit. One of our clients the other day got $350 ,000, no personal guaranteeing credit check at Ford. Literally walked into Ford and wanted to buy a truck, got $350 ,000 and ended up launching a Turo business as a result of that. And all again with no credit check and guarantee, then you end up with Visa cards, MasterCards, what we call universal credit that you can use anywhere. But again, all of that is obtained without personal liability, without guarantees, without credit checks, without meeting collateral, without any revenue, without needing any of the things that are required for almost every other kind of business financing, you can get all of that kind of credit through the business credit building process.

Joe:   And then how long does it take on average?

Ty:   Our clients get to the end of that process at about four to six months, which means they're getting universal credit in about four to six months. They're getting starter vendors week one. They're getting vendor credit all the way through. They start to get fuel credit about 90 days in auto financing about four months in. And then they're at universal credit somewhere within that range to have about four or six months. They're getting money all the way through the process to get to the end.

Joe:   What do you mean gas and auto financing? What do you mean?

Ty:   Well, let's look at fuel cards. So, it really depends on the industry you're in, right? We don't drive around a lot as part of our business. But if you're an over -the -road trucker, if you're a transportation, for example, you're spending $600 to $1 ,000 to fill up a big rig truck. So, what they're doing is getting $50 ,000 at Pilot Flying J or to get wax fleet cards or to get it at Citgo or any of the fuel stations around the country. So that's what fuel or fleet cards are. They allow us to be able to put gas in our vehicles at these stations and also repair and maintain our vehicles. It might not be a big deal for us, but if we're doing things where we have vehicles on the road, that basically covers the cost of maintaining those vehicles and fueling them. Then you talk about auto financing. It could be anything. I mean, you could use auto financing to go buy a McLaren. You could buy auto financing to go buy a truck. You could buy auto financing to buy a fleet of vehicles. It's like walking into any normal dealership, Ford has it, GM has it, Toyota has it, Ally has it, you're basically be able to get financing to buy vehicles. But again, now we're doing it in the business name. We're doing it with no personal liabilities. I'm not signing as a signer. I'm not basing it on my personal credit quality. There's not even a personal credit check. It's strictly in the business name and the approval is strictly based on the business's to be able to qualify, not use it.

Joe:   So you show people then how when you go into the dealership to tell them, I want to finance this, but not with this personal credit program. I want to use this business credit program.

Ty:   Yeah, and it blows them away. Like in this case with this client, he just was laughing. He felt it was hilarious because he went in and said, OK, I want to do it in my business name. They said, OK, well, title, you were saying, no, I want to actually qualify for financing. And the financier is like, oh, it doesn't work that way. He's like, pull it and try. And then he did. The guy came back and approved it, $350 ,000. The guy had never seen this before, right? So we have a partner program where we put people in the business to offer business credit. So he not only got $350 ,000, he signed that guy up as a client, made like thousands of dollars and profit as a result. So it's kind of funny story, but that's not uncommon. A lot of people don't even realize that in the vendors you're dealing with, the dealerships, that you can even do this. But when they run it through their system without the social, without the authorized credit check, then what they do is then they automatically, the system automatically defaults the lender to polling business credit. And if the person has enough credit to qualify, they automatically get approved.

Joe:   You know where my mind's going with this right now is how can I borrow money to lend money arbitrage, right? How can I borrow money from credit cards, business line of credit at maybe zero introductory rate or whatever the rate is, and then lend it out on good deals? I just did a class five minutes before we started this podcast and I was showing folks, okay, like, listen, if you, how do you get cashflow from deals without using any of your own money? And so I was teaching how to find deals at 50 cents on the dollar for cash offers and maybe offering 60, 65, 70 cents on the dollar for owner financing and get the owner to finance the deal. Or you go and you find a private investor that you pay them 10 or 12 percent or even a hard money lender at 15 percent, 18 percent. And, but there's a huge opportunity out there. People are looking for deals. And even when you're borrowing money from somebody, you can still cashflow on those deals with arbitrage. So you're paying 400 a month for that debt, but you're collecting 800 a month and your free and clear cashflow is $400 a month on land. So you're not worried about saving any free thing for maintenance, vacancies and repairs and that roof and damaged toilets and replacing the carpets, painting the walls. None of that is just so much more passive with land. So, what I'm thinking is, man, there's a lot of people out there that need money for deals. And what if, could somebody like me or an investor tap into something with Credit Suite to establish some lines of credit that they can turn around and lend on good deals, right, and make the spread on something like that? Does that make sense what I'm asking?

Ty:   Yeah, absolutely. And as a matter of fact, Michael Piagi was on, I was listening to one of his most recent episodes. He's a good friend of mine as well, right? And so he uses a lot of self -directed IRA tactics. And so there's a lot of different ways you can do it. Like, for example, what we teach a lot of our clients is stocks, bonds, 401ks, IRAs. It just is an example. All of those could be leveraged to be able to get people money or to be able to get money. And it could be 5 % interest is all that you're paying on using that kind of asset. And you'll talk about like securities financing, for example, my stocks and bonds stay in place. They're still invested. It doesn't even seem fair or legal, but it is 100 % where they are literally in the stock market making me money and then I'm double leveraging and to get a credit line against them that I can use that credit line I'm like 5 % interest to buy anything else I wanna buy. I'm literally using the same money to be able to make money twice. It doesn't even seem fair, but it is a legitimate thing. So there's a lot of different ways to do it through business credit or through financing. So for example, the first loan we ever got was $75 ,000 as a business for 9K a month. 75K, 9K, very common type of finance, it's short -term financing nowadays. Then with business credit established, we went and got $350 ,000 and our payment was 4 ,600 bucks. We got a quarter million dollars more money and our payment was at half because when we qualify with business credit to get longer -term lower interest rate loans, our payments are very low. So you get the idea that when you start to look at this your ability to go out and get loans for long -term low interest rates, get a lot of money at very low payments, and then being able to have all this alternative kind of financing where you're leveraging stocks, bonds, 401ks, IRAs, real estate, equipment, inventory, all these things you're able to borrow against, it just gives you this arsenal of ways to get money. And people in real estate investing, especially land, that's what they're looking for is the ways to finance a lot of those deals. So it absolutely is possible to do through arbitrage.

Joe:   Alright, so how do you get business credit through credit card stacking or legit business lines of credit from banks? How do you get that money out and put it into real estate deals?

Ty:   Well, first of all, there's a couple of different ways to start building business credit. There's starter vendors and then there's basically the equivalent of credit card stack, something that's called credit line hybrid. So in that case, what ultimately happens is the funding source is charging you two or three percent to pull the money out that you could actually get in cash. So think of it like this. A credit card doesn't have a zero percent rate to pull. It has zero percent intro rate, but it doesn't let you pull cash out zero percent, right? you've got a 22 % cash advance speed. So what actually happens is the finance source is actually running it through their merchant account. They're actually processing it as a merchant transaction, charging you whatever the two, three percent merchant fee they would have, and then just ultimately giving you the cash. Now they call it liquidation, it's part of their process, but anybody that's dealing in that area that's good, they're actually able to come in and help you liquidate those accounts at 0%. Now you don't need to do that with credit lines because credit lines, you're able to pull the cash out, just on to zero percent, right? Credit lines, you might be looking at 12 or 15 % interest. So that's a little bit of a hack to be able to use the credit cards in a way where you get the zero percent that pull the cash out at that. But credit lines, you're gonna pay higher interest to be able to use, but you don't have to go through a process of pulling all the cash out. You could just use the credit line for whatever you need to.

Joe:   So the zero percent on credit cards from credit card stacking or whatever you get, how long is it zero percentage?

Ty:   Up to 18 months typically, and then what a lot of our clients will do is then they come back every six months and we get them more and more funding. So they're typically always dealing with an amount of $50 ,000 to $150 ,000 at zero percent at any given time. When they exhaust that 18 months, then they'll go back and ask for more time, and if the credit issuers won't give it to them, then they're automatically reloading up on more accounts that they're able to get at the zero percent.

Joe:   Okay, cool. So again, arbitrage, you could borrow the money short term for 0 % lended at 12 15 % or use it to buy a deal and sell it on owner financing. And yeah, that's amazing. Okay, so you keep

Ty:   I'm sorry, the other nice thing about that is, if you think about it, you can go to, I can go to my sister and I can go to my sister who has stocks and bonds and she's already making money on that right now. I can get a credit line even against her own stocks and bonds, obviously with her permission, and then be able to use that to be able to lend out, they can get interest return and then give her part of it. So it's not even just arbitrage with your own money and your own credit, you're able to do this with others around you using their money and they get a return and you get a return as well, so there's just a lot of different ways to do it.

Joe:   And yeah, that's cool because the average vacant land deal, you buy it for, let's just say 10 grand and sell it for 20 grand, right? How hard is it? How quickly could you get a $10 ,000 credit line for 10 grand? Is it that hard?

Ty:   Our clients in two weeks, three weeks with an average walk away is a brand new business. No collateral, no road revenue, no anything, they're going to walk away with 60, 60K, conservatively. And sometimes they have higher limits now that personal credit, they'll get 100, 150K. So in less than three weeks, you're talking about getting somewhere between 50 and 150K.

Joe:   In most cases. Because listen, guys, listen, if you're listening to this and you're in a community of land investors or house investors or something like that, there are a lot of people out there that need money, short term, small amounts of money for these deals, especially land deals. And what if you could lend out 10, 20, 30 grand on a good deal, right? And split the profits with them on a wholesale deal. So we're talking, this is a typical wholesale deal. You're in and out if you're taking it down and you're reselling it on the MLS with a realtor, you're typically in and out of a deal in two months, maybe three months max. So you're only lending the money or borrowing it. You're borrowing it and then lending it for two to three months. And you could lend the money and get a share of the profits instead of charging an interest rate. What if you said, Hey guys, who needs money for your land deals? Someone says, Hey, I got a land deal. It's worth 20. I need 10 grand. All right. I'll lend you the 10 grand. You give me 50 % of the profits. Fine. Okay. I'll do it. So then you buy it for 10, sell it for 20, round numbers, your gross profit is 10 grand. You get five, they get five. Let's say after closing costs, whatever, you get three, they get $3 ,000. So you just made $3 ,000, not using any of your own money and not using, they're not paying any interest on a land deal. Is that crazy? Is that realistic? Is that doable, Ty?

Ty:   Very reasonable. And as a matter of fact, that's why this is this credit line, however, is really the number one program we've ever seen for real estate investors. Real estate investors are the one of the top three industries that we service with real estate agents being another top one. It's the exact same reason, because we're able to have multiple different creative ways, including this, to be able to get cash for them to actually be able to invest. You can't walk into a title company with a credit card, but you can walk in and liquidate that 0 % and then walk in with all cash to be able to actually buy the property or like you said to be able to arbitrage to be able to help other people be able to buy and then come in and get the returns on that as well.

Joe:   Yeah, I love it. Okay, so I wanted to ask you about you said there's non recourse loans. What does that mean? Does that mean you can just be an idiot and nothing will happen?

Ty:   Look, we always want to be responsible. That's one of the caveats, whatever I'm training people to say is, is it about just going to get money and screwing over the banks and then walking away? It's just a matter of who's liable, your business or you. And so if you have a business, realistically, you should, you want to prevent, and so I really refer to it as a strategic use of a personal guarantee. You're never going to be able to get away from personal guarantees when you're building a business. SBA loans are probably always going to require one, but you don't need them for a lot of other things. Like there's a lot of loans out there based on your revenue or based on collateral or based on just business credit itself that doesn't require personal guarantees. So what I like to teach is that you want to be very strategic with personal credit checks and guarantees and only use them when you need to. You should never ever use a personal credit card to fund a business. That's just ridiculous. Like business credit is designed for that purpose and the limits are way higher. It's going to be way easier to use that. None of it requires guarantees. None of it requires credit checks. So that you should be getting without a guaranteed credit check. stuff based on your revenue, stuff based on your collateral, no guarantees, no credit checks. That lets you basically keep your guarantees when you do really need them for maybe an SBA loan. And that way you're strategically using it only in the cases you need to, and then you're not in the other cases. So what would happen if you were default on that credit card, for example? Well then what happens is they come after the business and the business assets, it protects you and your personal assets. And this is why if we look at Inc. or Entrepreneur, Forbes, they all talk about this, that the responsibility of having two separate credit profiles, your consumer and your commercial, and then using your commercial to fund your business and not your consumer, this way it keeps your personal finances, personal credit, personal assets safe and separate from what's actually happening in the business.

Joe:   Cool. I love it. Some of the other questions I had maybe relating to this is what are some common mistakes that you see people make when they're trying to do this?

Ty:   I think two of the biggest mistakes I see people make, people use personal credit to try to fund the business. They get into a business that takes twice as long as they think and twice as much money as they think it's going to. And then what happens is they start really putting balances on the personal cards, take their personal credit scores, I call it personal financial checkmate because then they ruin their ability to use personal credit for the things they could have used it for. So I think that's a big mistake I see people make is using consumer credit cards, personal credit cards, which were not designed to fund a business to try to fund their business endeavors. The second thing that I see is they just do not, they do not focus on fundability. Like 90 % of business owners I see, their Secretary of State data does not even match what they're putting on an application. They went and they set up their entity, then they got their phone number, then they got their address for the business, and they just never even thought to go back and check it. Well, the problem with that is, is that more than half of all applications for financing are denied because the lender thinks it's fraud. The lender's looking at your report and then they're looking at places like Secretary when they don't match, it throws up red flags because they can't even validate the business applying is the same business they're finding online because the information doesn't match. So congruency of information is really important, especially with your Secretary of State. What you're putting on an application should match everywhere, especially with the IRS and the Secretary of State. When it doesn't, you're getting denied and you think it's your income and your credit. It's none of that stuff. It's legitimately because your business didn't pass the fraud test that they're trying to get through.

Joe:   So what if your business is brand new, does that matter?

Ty:   Well, that's where you do it the right way right from the beginning. So what we tell business owners is, hey, make sure that the company name is at high risk and let's figure that out. Do you know what your NAICS code is? So this is a simple thing. It's like, if I ask a normal entrepreneur what their NAICS code, what their industry code is, they do not know. A typical person will not know this. That's a really big freaking deal. Like your lenders decide rates and terms, the business credit reporting agencies determine your industry and then compare you and have comparison scores against you and other industries. The IRS does their audits based on your expenses not matching others in your industry. And most business owners aren't even choosing their own NIACS code. They're just going in and telling the lender, I'm investing or consulting. And the lender's choosing the NAICS code and then it's out with the bureaus, the IRS is with everybody. And then they're struggling to get money not realizing they're being seen as being in a high risk industry when they're not. So those kinds of things are really important. Like the foundational stuff is really important because if you're seen as high risk right out the gate and you do it wrong as a startup, you're struggling to get money and it's not even for reasons you think. It's such basic stuff you messed up. So if you're launching a business from the beginning, have all of your permanent information in place before you get that Secretary of State record. It's the best advice I could give you to launch. Meaning go get the phone number, go get the address, get the website, get the email, then go get your Secretary of State record so when you're putting it all in there, your IRS, when you're setting up your bank account, it's all with the 100 % correct info that you're going to be using moving forward and that way you don't have to change it, Forget about it and then realize that it doesn't match up.

Joe:   Okay, cool. Can you talk about lines of credit a little bit? Because I've got, I've been confused about this in the past of like, I understand credit card stacking. That's maybe the first thing you get people to do is get some business credit cards. But then there's business lines of credit. Where do you get that from? And how do you get that for your business?

Ty:   Multiple different ways. So there is a method that takes a little bit more work. But a smart method to do when we call it funding stacking is we launch a business, go out and build relationships with two or three big banks, national banks, two or three regional banks, as well as two or three credit unions. Go in and open accounts, put money in there, have some money coming in and out of the account, transferring money back and forth between those accounts. If you're doing this for a course of about three months or six months, you have a really good chance of walking into those institutions and getting some kind of credit or financing, whether it be loans, credit lines, or business credit cards, because of the relationships you've established. So we help a lot of clients through that process where they're going through and getting two or three here, two or three here, two or three here, then they may have nine different accounts out there, then they're leveraging all of that at one time to go in and be able to get maximum funding. And I mean, we have clients that do $300 ,000, $400 ,000 are able to pull out using that system. Now, if you're not getting that complicated, you just want a line of credit. A lot of lines of credit are based on your revenue. So we start with places like BlueVine and Fundbox. BlueVine and Fundbox use AI to plug right into your bank account. They're gonna look at your revenue. They're gonna lend you money based on the revenue. Super easy money to get. I mean, if you have been in business six months and you've got revenue, you're probably gonna get approved. Then the other credit lines beyond that, we're able to get as we have maybe a year's worth of tax returns. We have a more established business and we've got a year's worth of tax returns. Now we can start to get into a lot of other lines of credit, including lines of credit from SBA, which they call cap lines. And those people up to five million bucks are able to get from SBA, for example. So we start Fun Box Blue Line, and then we move up to a point where we're starting to get more credit lines from banks once we have about a year's worth of tax returns.

Joe:   Okay, yeah, that makes sense. It's a process. Now, I jumped off of the mistakes things. Were there any common mistakes that you see people make?

Ty:   Well, we talked a little bit about a couple of them, right? We talked about using personal credit to fund the business, not having your business set up credible. But I'll tell you one of the most astonishing things, have you ever seen your LexisNexis credit report? It's the scariest thing you'll ever see in your life. Your LexisNexis credit report is something everybody should be able to get to see. And what we don't realize is we're familiar with changing your Equifax experience. We think that is our credit report, but that's not what lenders see. Well, lenders see LexisNexis, LexisNexis is a whole different world. It has your entire life's history on it. I mean, every address you've ever had, every phone number you've ever had in your life, every email address check, my basic training address is on my LexisNexis. I was there for six weeks, right? Six weeks, and it's on my actual credit report. Every vehicle you've ever owned, the VIN number from those vehicles, every insurance policy you've ever had, every home you've ever owned. Hey, let's just talk about homes. Every home you've ever owned, how many stories it is, the square footage, the HOA that's associated with, the amount of air conditioning units you have on your home, the building materials that were designed to actually build the home, this all part of your actual permanent credit report. Every license you've had issued, every license you've had actually revoked. So my pilot's license, for example, is on my credit report. I mean, it is the most intrusive thing you've ever seen in your life. But it also has every public record through your lifetime on it. So we might think that we had a judgment from seven years ago, it's not on my credit report anymore, 10 years ago. Well, it's still on LexisNexis forever. Like, judgments, tax liens, it's permanently on that LexisNexis credit report. So either things you think that have dropped off your consumer reports, lenders double C, lenders see it all in LexisNexis. So I think one of the biggest mistakes I see is not going to get the data that lenders are actually using to make decisions about you. I had a lot of denials before I figured this out. Once I figured it out and got LexisNexis and cleaned it up, all these barriers I ever had were removed from getting loans, and getting merchant accounts, and all these other things.

Joe:   Remove the bad stuff.

Ty:   It's actually easier to dispute and get it removed than consumer credit reports, normal consumer credit reports, because most people are disputing TransUnion, Equifax, Experian, credit repair, it's a whole industry, it's a whole thing, right? But most people know nothing about this, let alone even getting their reports, let alone actually disputing information. And it's a good way to go. I got insurance for my watch and I got turned down and I went to the underwear and I said, why? She goes, something on your LexisNexis, like jewelry, I'm like, I didn't even know it was a thing. And she literally told me she goes, go get it, pull it, dispute it, and then apply again. And I did. And sure enough, I got approved. So LexisNexis is the root of all evil. It is where everything is. As a matter of fact, the bankers use the judgements, the public records that are put on your consumer credit reports with Transgenic, LexisBank, they are validating them from LexisNexis where they're getting the data. When you go in the police, the police pull you over the police reports. They're pulling LexisNexis. Every speeding ticket, every misdemeanor you've ever had, every felony you've ever had. It's all on your LexisNexis credit report.

Joe:   How about something that is real though, right? Just to get it removed.

Ty:   We have to look at the definition of real. According to the law, the Fair Credit Reporting Act, something has to meet multiple criteria to be on your credit report. It must be 100 % accurate, 100 % verifiable, 100 % timely. This is very important because a lot of people say, hey, that collection, it was real, I really did it. But if you really look at the credit report, it is not correct. Like the codes that they use, and you can see this, if you ever see a tri -merge credit report, you see that the difference between the bureaus is, there's difference between the reporting of every one of those accounts. One of them has to be right. All of them can't be right when they have different information. So even though you might have had something really happen, it doesn't mean it's being reported as it is actually 100 % accurate. So I find that just in a disputing process, even on a normal consumer credit report of negative items, if you disputing it, eight out of 10 of them were removed because it might have happened, but what's being reported is not 100 % accurate. And that's what the law requires. So yeah, I got to keep that in mind. And if I see something on my LexisNexis credit report, I'm going to dispute it. And then it's their responsibility. It's the creditor's responsibility to prove the accuracy, not mine. So in most of those cases on LexisNexis, nine out of 10, they just remove the aisle. So I actually had a judgment on my LexisNexis credit report that was not true. It prevented me from getting an SBA loan. I disputed it with them. And then I said, Hey, I have these two that like I owed a mortgage company failed back in the mortgage crisis. They're legit. They removed them all. I mean, just one disputing one and telling them this isn't right, these two are, they removed all of them just through my dispute, even the two I didn't even dispute. So yes, everybody should be disputing consumer credit reports, especially with Lexus, Nexus and the other bureaus, because it's a credit issuer's obligation by law to validate the accuracy, not yours.

Joe:   And because that's something you can dispute yourself or do you have to have a company that do that for you?

Ty:   You can absolutely just do it yourself. When I get my LexisNexis credit report, I look at it, anything I think is unfavorable, I'm writing into the letter, hey, this isn't right, here's a screenshot of it, here's what's wrong, here's what I don't think is accurate, and then I send it to them, and then I get a report back with the results telling me everything that's been removed. I do exactly the same thing with consumer credit reports. If you don't wanna do it, plenty of other credit repair companies out there, not my thing, right? I'm in the business space, not consumer. But again, everybody should be doing that. if you have anything derogatory because you're right by law to make sure that stuff is correct and it's their obligation by law to do it.

Joe:   Nice. So this is so good and helpful. In fact, I'm up right now on my LexisNexis website in the consumer portal to request my LexisNexis report. Do you have to pay for this or is it just, do they just send it to you?

Ty:   Yes, you are. You don't have to pay for it 100 % free.

Joe:   I've got reports from the other three agencies, but never this one.

Ty:   Yeah, most do not know anything about it. That is correct.

Joe:   Crazy, okay. And then are there, I'm assuming this is something you help people do or you teach them how to do it yourself, themselves.

Ty:   So our clients, we help them through this process. We help them to get business credit reports. We help them to get their LexisNexis credit report. We help them go through to be able to dispute the credit reports as well on the business side and on the LexisNexis side. So that's all part of what we help clients do, but you don't have to become our client to do this. You just go and if you type in free LexisNexis credit report, then even if you misspell it, you'll find the correct spelling. You'll go, you'll fill out some information online and they will send you, they will mail you pin number and a link, and you'll go online, they'll type in the pin, you'll type in the link, and you'll get the full detailed report. And then from that point, it's a matter of putting a letter together saying this stuff is wrong, and this is what needs to be fixed.

Joe:   Yeah, cool. All right, so how can we work with you, Ty? How can people work with Credit Suite and what do you offer?

Ty:   So for us, we have everything from a full blown program or we have our coaches and our software to actually walk through with you. We're the biggest providers in that space. So ultimately, and most people out there, if you run into anybody offering business credit, we're the secret sauce, we're the company that's actually behind them that's actually doing the servicing. And then we have it all the way down to do it yourself, where people can come in and use our technology to actually be able to do it themselves. If people don't want to buy anything from us. They just want to come in and get financing, then we help our business owners through that as well. Cool. Well then we're in all the hangin' dude. They can go to CreditSuite .com to learn more. They can also go to CreditSuite .com forward slash EIN to grab a free guide. It's been downloaded over a million times and that'll walk through this beginning steps of building business credit. And they can also go to CreditSuite .com forward slash CLH, short for Credit Line Hybrid, CLH to learn more and to be able to submit an application to be able to get financed through the Credit Line Hybrid program that we talked about where they're able to take the cash out to 0%.

Joe:   Where do you recommend they start? Just CreditSuite .com?

Ty:   CreditSuite .com forward slash EIN. It's a great guide that just maps out the exact steps of business credit building, what business credit is, business credit 101. But if somebody says, hey, look, I like that zero percent. I've got good credit. I wanna be able to get that right now. Go to CreditSuite .com forward slash CLH. Submit a quick application. We can get on the phone with you. We can get you submitted and usually within 24 hours, you're able to get approved.

Joe:   Nice. And then if you get approved in 24 hours, how quickly can you access the funds?

Ty:   Three weeks or less. So it depends. Now we've got funding like it's some based on somebody's revenue where they can get funding in 72 hours or less. But with that program where they're using the credit lines as 0 % usually they're actually getting the actual cards in the mail one about two, three weeks.

Joe:   Cool. All right, very good. Any final parting words, Ty?

Ty:   I love what you do. I am an avid listener to the podcast. As you were on about a month ago, reinvigorated my interest in land. And I'm a student now as well. And just kudos to you for everything you've done with your show. And kudos to you for everything that you're doing to help us as your students be able to really grow in this industry. I'm excited.

Joe:   Thank you. Thank you very much, Ty. All right, so go to Creditsuite .com guys, Creditsuite .com. Ty's a good guy. He's actually, we were just talking before he hit record and he's already been doing the marketing. He's already going to start sending out offers. I think he told me this weekend and he just signed up with less like three or four days ago and he's already ready to start sending out offers. I love it. Well, thank you so much, Ty, for being on the show. Thank you for talking about this stuff. I'm fascinated. I got a ton of notes here. I got some things that I'm going to do as soon as we get off here. Thank you everybody for listening to the show. Thank you, Ty.