Tier 7 Accounts Explained

Welcome to this module, Tier 7 Accounts Explained. So this is going to be a milestone module. Now, many of you may not be ready for tier 7 accounts, and if you’re not, it’s totally fine. So here’s what we’re going to cover. Number one, I want to break down what tier 7 cash credit is. I’m also going to get into knowing your company’s financial strength, which is a big, big determining factor on if you should or should not be moving forward with tier 7 accounts. Then the actual goals here in tier 7. So, just like we’ve done before, we want to make sure we have this before applying for tier 7 accounts, 12 minimum. At this point, you probably have more, but at least 12 traidelines reporting to Dun & Bradstreet. 8 tradelines reporting to Experian, Equifax. 3 orders, and all these vendors, secure at least $10,000 plus in trade credit, which you probably have way more than this, especially if you did Home Depot or Ikea or Office Depot or any one of those retailers there.

So you should have well more than this. And then you should, at this point from a credit perspective, potentially be ready for tier 7 accounts. But let me cover a couple of financial things you want to have. So number one, getting financing will be approved based off these three criteria. When it comes to cash credit. Number one, collateral. Number two, your credit, your personal and your business. And then number three, your cashflow, proven bank statements. Okay? So with all of these three, you want to know where you stand. So I’m going to break down what all these means. So number one, do you have consistent cashflow? Remember I broke this down at the beginning of the course, the wealth triangle. So you’re either in high-income skillset phase or you’re in scalable business phase. So having cashflow come in is a pivotal thing when it comes to getting financing.

Also I broke down the profit first model, how to maximize your cashflow. So financing options like revenue based lending, credit line hybrid, cashflow loans, lines of credit, traditional bank loans, all of these may potentially be a good option for you. So we’re going to be looking at this. Okay. The other thing is, do you have money coming in and going out each month. And do you have more money going in? Then you have more money coming out. This is going to be positive cash flow. Okay? The banks, we’re going to look at this and you should be really looking at your business relationship with your current bank right now because they can see this. And do you have a positive bank account balance? Is your bank account in good standing? Hopefully it is. Okay? So this is an again could be used as collateral.

So if you have strong financial statements and you have cash sitting in the bank, financing options, like equipment, inventory loans, security baselines, 401k financing. If that’s available to you, all of this is going to be a positive thing that you can look into, but more specifically, do we have a bank, a positive bank account balance, and are you generating at least $5,000 a month or more. So at this point you should be generating at least $10,000, okay? Per month in your business. All right? So if that’s the case, you’re a triple threat because you now you have good cashflow makes basically more cash coming in, then expenses going out, you have good credit and you have collateral because your cash can be used as collateral. Now your choice for financing options is going to be a lot more streamlined in order for you to do this.

So it depends upon how long you’ve been in business. And you’ve been keeping record, you may be able to get a SBA. But my recommendation is that you have been in business at least a year or two. Before you go to the SBA, you’ve got your books in order to you’re following the accounting systems and you’re good to go. All right? So our tier 7 goals is to get 15 tradelines minimum. You probably have more, but at least 15 tradelines reporting to Dun & Bradstreet,.10 tradelines, reporting Experian and Equifax, 3 orders, wherever these vendors are that you’re going to get. And then you want to at least have a $15,000 line of credit and then get a profit and loss report, trade balance sheet, bank statements prepared by a actual CPA or a bookkeeper. So this is why I said it in the accounting tools or the tools that track the cashflow section.

This is, these are important things for you to have. Okay? So if you don’t have all this, it’s okay. I would just recommend if you’re already banking with, you already have an established business banking account. Now you can go to that business banker and request that credit card. Now they’re probably going to ask you the personal guarantee, but that will be an example of cash credit. If you haven’t already done that so far. Okay? So then if you need additional help with bookkeeping or finding that person reached out to our support team, we can point you in the right direction regarding that as well. But these are the goals. This is the things that we consider in tier 7, and I’ll see you in the next module. And again, no pressure. If you aren’t at this place yet, don’t start getting these business cards unless you bank with a banker and you can potentially go through them.