Submitted by: Rachel Victoria
Like any business, you need startup capital to be successful. Most business experts list lack of adequate startup funding as the primary reason businesses fail. Your startup passive income business will not succeed on a shoestring budget as many are trying to do.
Here’s why you need capital to create this business. Let’s say you have $10,000 or maybe even $50,000 to invest right now. And let’s say you find strong earning, diversified passive income systems that actually double your money in a year. That’s a $10,000 to $50,000 profit each year. That’s great, but when you’re building a retirement portfolio, or want to save up for your dream home, or send your children to college – this won’t be enough to achieve your goals.
Of course, the plan is to compound these gains over a number of years. But the longer your plan takes the more likely roadblocks will slow you down and you may need to dip into your investments to survive – for a health crisis, a career change, a downturn in your career, care for an elderly parent …
So, to accomplish real wealth building and get off the slow treadmill that too many of us are caught up in, you may want to obtain startup capital, just like most business ventures do to get underway. You need to capitalize your passive income business dream!
Let’s say you invest your $50,000 in savings and make 6% a month. That’s $3,000 a month. Not bad. But if you could obtain $300,000 in savings and after the debt service net 4% or more a month, that’s a $12,000 net monthly return. Much better.
For some, this may seem unusual – to obtain capital for investment purposes. However, this business model has been functioning in the banking industry for decades.
The banks pay you 1% on your savings account deposits, then lend your funds out for credit card purchases or auto loans at a cost to the borrower of 12%. And, they pocket the difference on your money! Now, you can use the same leverage when you obtain capital to start a passive income business.
But how do you obtain startup capital for a passive income business? This kind of business is of course not your typical brick and mortar establishment, and borrowing money for investing has certain restrictions. But it can be done, even in today’s extremely challenging lending environment.
Our favorite avenue for startup capital was Non Personal Guarantor funding, where no one is personally responsible to pay the loan back. This is the type of funding that well-established companies and wealthy individuals obtain. Do you think that when Donald Trump obtains investment capital for a new venture, that he signs over his name and his fortune to guarantee payback? Not a chance. If that were the case, then one of his five or so corporate bankruptcies would have reduced him to nothing long ago.
But Non Personal Guarantor (Non PG) funding is difficult to obtain with credit so tight in todays lending environment. We are still testing various Non PG systems, but you may want to consider PG funding for the time being until the lending situation improves. PG funding is delivering consistently, and since we have many high returning passive income systems to ensure loan payback and profitability, we’re comfortable using PG systems until other methods start to deliver again.
So jumpstart your financial future with high levels of funding in your passive income business, just like any other business requires. The companies that have succeeded have always, always had high levels of startup funding. Why shouldn’t you?
Good luck in all your investing!
Credit 2 Cashflow
About the Author: The author is a former CFP with an MSFS in Financial Planning. Ms. Victoria owned a Fortune 100 Financial Services Franchise for 20 years.
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