How Maintaining A Good Credit Score Can Help You Start A Business For Free

Did you know a good credit score can allow you to start a business for FREE??? Well maybe not for free, you will eventually have to pay back the money, but you can oftentimes get not only 0% interest but also no payments for anywhere from a few months to up to a year.

This is why it's so very important to monitor your credit score, dispute any errors you see on  your credit report, and keep your credit score as high as possible.

If your a regular reader of my blog or watcher of my Youtube videos you already know how important I feel it is to have multiple income streams. Whether those streams are full fledged businesses, or just little side hustles like some affiliate accounts, a few books on Amazon's Kindle KDP Marketplace, and a few blogs. It's important to have multiple hustles and multiple revenue streams.

Recently myself and my business partner decided to start another venture. A landscaping company. Now granted it's not a glamorous business and it's tough to scale, you can only make so much money. I greatly prefer ecommerce where I make money in my sleep and work from a desk in the comfort of my office to outside in hot weather doing manual labor and busting my butt. That said I felt the need for another revenue stream, I had an employee lined up so this would be a pretty passive business and we decided to give it a go.

At the outset we debated on saving money and buying used equipment which would mean paying outright from the start. The other option we looked into was financing. We found out we could finance all our equipment with no only 0% interest for 48 months, but also no payments til September. We started this in late April so the idea of no payments til after the summer when we made the bulk of our money was appealing, and after that we could use proceeds from the business to pay down the loan at 0% so no harm in taking our time paying it back.

Now granted, this didn't allow us to start a business for free, we eventually will have to pay back the $13,000 and change we spent on equipment. The key however is that we did not have to lay out that cash at the outset. We were able to get all our equipment and have almost 6 months to earn that money to pay it off. Now granted we probably won't make a ton of profit the first year, but hopefully by the end of lawn season we can pay off the loan in full, hopefully with a little bit of profits in the bank. At that point we will probably invest a couple thousand in a snow plow for the winter and have another revenue source, snow removal.

The Importance Of Maintaining A Good Credit Score

This story highlightes the importance of monitoring your credit, paying your bills on time, and maintaining a good credit score. Not only will it help you when you want to buy a home, a car, a boat, do some home remodeling. It will also allow you to pay less for pretty much all credit that you get.

Recently I had a few dings to my credit due to a mistake by a credit card company and was denied a mortgage on a rental property I've been eying for months. This was hugely disapointing, and though I know this will be remedied, it's most likely going to prevent me from buying this particular home. I imagine it will sell before I'm able to get this corrected and adjusted on my credit file. I'll do a follow up post and video in more detail about this but just wanted to write this post as a quick reminder how important maintaining a good credit file is.