How To Fund Your Business Idea.

???Receiving funding for your business idea is going to begin with your corporate structure.?In order for you to receive funding, you need an LLC, a S Corp, a C Corp, and a limited partnership.?Having any one of these means you have corporate credit.

????If you are a sole proprietor, and you are running everything that way, you have only one credit score.?But, if you have three companies, this means you now have four different credit scores: three company corporate credit scores and one personal credit score.?Having multiple credit scores gives you access to more funding.

????The most popular way of receiving funding is through OPM (other people’s money).?Other people’s money might come to you in the form of a guaranteed note.?So, if you do not have a profile, a reputation, a resume’ of completing projects, where you are able to return capital to the person who you have borrowed money from, you are going to have to put something of yours up as collateral.

????If the money you have borrowed from someone has moved into an equity position, versus a debt position, it now has an opinion.?And just because people have money, does not mean they know how to run your business idea of how you want to receive funding for whatever kind of company that you have.?So, you want to structure your business idea with a more mature management team.

????So, using other people’s money is going to come to management, to the team who has the resume’, the investment experience, and the software to return capital back to you properly, with the proper return.?If you do not have any of that structure setup, you should begin working on a resume’, start making money, and start building your own credit.

????For those that are a little bit more mature, you can utilize OPC (other people’s credit).?For whatever reason your credit isn’t good, whether it’s from going through a divorce, a foreclosure, you could always partner with someone who’s credit is better than yours.?What is that person who’s credit you are using going to want??They’re going to want of your checkbook.?Why??Because you pay the bills.?Whether or not you pay the bills, that person has their credit on the line.?When the bills are paid late, that person’s credit is destroyed, and it is the same concept in rentals, or any type of business you want to setup.

????So, funding happens because of your credit score, or your corporate credit score.?Your companies can have corporate credit.?You can have corporate credit.?Remember, just because you have a credit score does not always mean you are fundable.?The revenue and profits of your company, determine if you are fundable or not fundable.?There are lots of variables that make you fundable, depending on what you have done to yourself financially, and you are structured.

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