The next time you see your bank teller ask her if they can borrow up to $1,000, she might be tempted to do just that.
But first, the bank needs to get rid of a couple of dollars.
“The next step is to see how you can use your leverage to get out ahead of your competitors,” says Tim Hetherington, managing director of Phoenix Financial Services, a financial leverage consulting firm.
Hetheringham, who has worked with banks on a wide variety of financial matters, says the first step is getting a good deal.
“You have to get your bank to offer you a good rate for your business, to say, ‘Hey, we can give you a deal,’ and you have to be willing to take on some risk,” Hetheriston says.
If the bank is willing to accept the deal, Hethereston recommends making a payment of at least $300, and then waiting a couple days before making a new payment.
The next step, Hitherington says, is to look for a “good value,” or the highest rate of return that you can get.
For this reason, he says, a low interest rate and a discount rate should be your priorities.
Hithereston says to get the best rate of yield from your business you need to understand the underlying fundamentals of your business.
For example, if your business is a mortgage lender and you charge a 2.75% interest rate, your yield will be higher than the 1.5% to 2.25% that other banks charge.
Hiberington says if you have a large amount of inventory, such as a store, that could give you an edge in this business, too.
But if you only have a few inventory locations, he recommends using a different approach.
“Instead of charging a higher rate of interest, I would look at the value of the assets you have,” he says.
“For example, instead of selling an asset and then having a lower interest rate because it’s a less valuable asset, then you should look at how much the value you have on that asset is.”
In addition to understanding the fundamentals of the business, Hiberson says he also recommends taking advantage of your existing credit score.
He recommends checking out the Equifax Equifax Credit Score website, which will give you access to scores from dozens of credit agencies.
The website offers a range of tools that can help you manage your credit.
Heterogeneity of score is not a bad thing, Hitterington says.
However, he suggests that you only use the credit score that’s accurate for you.
For instance, he would not recommend checking out a score that shows that he has a credit score of 100% if he is a high-income consumer.
For that score, he advises getting a higher score with the American Arbitration Association, which has a range from 100 to 400.
Another option is to try and get a low credit score with a company such as Equifax.
“If you have one score that you think is a good score for you, you can apply for a credit card with them,” Hiberonsays.
“Or, if you want to find out whether they’re a good credit score provider, you could look at a few other credit providers.”
“There are many ways to make money, but for me, if I have the best score, then I’m going to invest in the best technology I can use to maximize my profits.”
For Hitherings, it’s important to know that his approach to business has not changed.
“I still invest in myself, I still invest my money, and I still have the same strategy and tactics,” he explains.
Hittering says the key to staying ahead of competitors is not just getting a rate of pay that’s competitive with your competitors, but also making sure you can maintain that rate of money well into your business life.
“It’s not about a big pay day, it might not be about a huge pay day,” Hitherons says.
Instead, Hitting the right balance between risk and reward is his key to success.
“We need to get as close to the 2.5 percent that the other banks are charging, but we need to have some other rewards in place as well.”
And that means, he explains, investing in the business itself.
“A good business can have a good margin of safety.
But you need a balance, and that’s not something that comes easy to everyone.”