Interview with Garrett Sutton
Approved for Your BHPH loan before You Walk into the Car Dealership
Salmon, CCFC. A certified cash flow consultant / business
coach specializing in business finance and startup, Erik has been
in the business startup and credit industry for over a decade.
He co-hosted "The Make It And Keep It Hour" on KTSA
San Antonio TX, has written several articles on business credit
and business startup, and has helped over 10,000's of thousands
of clients, ranging from small startup and home-based businesses
to large private corporations.
Q: Erik, please tell me about "Business
Credit Success." What's been the general attitude towards
the book? Has the book received many positive reviews so far?
A: Weve been hearing rave reviews from readers of Business
Credit Success. They tell us its a straightforward guide
that helps them understand how the process of building business
credit which is a mystery to many works. In addition,
we are also helping business owners through our coaching program
that helps them set up their business in a way that is optimized
to obtain financing in the name of the business and minimizing
the need for personal guarantees. We are glad to be able to offer
them affordable solutions since there is are lot of overhyped
and expensive programs out there.
Q: It can be difficult starting a business in any economic
environment but this current environment can make things even
more challenging. If a person has bad credit and wants to start
a business what would you recommend that person do?
A: I would recommend that they still start the setup of the
business following the steps laid out in our eBook. This initial
process can take up to 180 days. While the business is getting
setup, you can go ahead and start working on the personal credit
issues. This way once these issues are corrected, the business
can move forward without delay. Even if take 2 years to correct
your personal credit issues, the business is aging which adds
value and opens up funding opportunities. In addition, there are
national retail business accounts that do not require the owner
to have a strong FICO. The sooner you start on this process, the
Q: If a small business owner came to you with bad credit and
said "I need financing to expand my business". What
are some things you recommend that business owner do?
A: This is a common scenario as most entrepreneurs damage their
own credit in the process of building their business. The first
thing to do is an evaluation of the business to identify any compliance
issues that may have been missed as well as to determine what
barriers there are to financing the expansion. A funding and cash
flow plan will have to be developed. It will outline solutions
to any financing barriers, and balance out cash flow. Depending
on time frames, alternative financing may have to be explored
due to the personal credit issues. At the same time, personal
credit issues will have to be corrected or at least addressed.
Bottom line its better to identify funding and cash flow
issues early on rather than later.
Q: It's been said right now is the perfect time to start a
business because you can pick up talented labor cheaply and business
related assets are generally cheaper. Would you agree or disagree
with that statement?
A: I think that any time is a good time to start a business as
long as it is well planned out. It needs to solve a problem or
meet a need, and should be fully capitalized. Under capitalization
is the main cause of business failure in the first 5 years of
a business. Lower labor costs are only one factor and even in
good economic times there are ways to keep labor costs down.
Q: Are there any scams business owners should be on the look
A: YES! When it comes to corporate credit or business credit
building programs, there are more scam programs than there are
honest ones. Common sense has to rule the day when evaluating
any business credit building program offered. The main thing is
that if it sounds too good or too easy and all you have to do
is pay a high fee to obtain credit, then red flags should be going
Typical scams are:
· Guarantee that you will obtain $xx of corporate credit
(usually for a steep upfront fee)
· Guaranteed credit card or lines of credit
· The business credit is built for your company (no work
on your part)
· No personal guarantee ever
· Overcharging for basic information and services
A useful strategy, buying aged companies can be a legitimate
way to jumpstart a start-up business, but it requires a great
deal of due diligence to make sure you arent taking on someone
elses tax or financial liabilities. And if a company requires
you to purchase an aged company to obtain large amounts of funding,
then you are looking at another scam.
Q: Please give me your thoughts on the consumer protection
czar, Elizabeth Warren? (http://www.youtube.com/watch?v=sPgDO--j7Sw)
Do you believe this current administration is doing consumers
and small, medium size business owners any favors by imposing
more rules and regulations?
A: The interview that you have linked to is about consumer protection
that deals with consumer credit. Business credit is virtually
unregulated. The major credit protection laws that were passed
in the last decade (The FACT ACT that protects consumers with
regard their credit reports, and the Credit CARD Act that helps
protect credit cardholders) do not apply to business credit. This
is all the more reason why entrepreneurs need to be educated on
how business credit works and how business credit affects their
business and cash flow.
Q: I would like for you to be Nostradamus for a moment. A
lot of people in the media have said "America is in decline"
which I disagree with but after America comes through this recession
where do you see American business and American entrepreneurs
10-15 years from now?
A: Americans are a resilient people and historically have only
gotten stronger in times of difficulties. Small business has always
been the backbone of American economy and as long as government
stays out of the business of small business, then I think American
business will be stronger sooner than ever in 10-15 years.
-Shane from Buy
Here Pay Here Car Lots