Here's a Success Secret: Apply for Credit Lines Simultaneously and Not Sequentially

At a January 2009 workshop I attended, Dan Kennedy, my marketing mentor and one of the world's highest paid copywriters, observed how his most successful clients act simultaneously not sequentially. He tells the case of a man who needed funds, so he applied to 10 sources at the same time. He got five acceptances, and actually surpassed his original goal. If he had approached his challenge conventionally, he may have taken action on only one channel, possibly got turned down, and perhaps given up.

The job of an entrepreneur is to raise capital and generate revenue. One of the best ways to raise capital is to get credit, so you have access to money at your fingertips whenever you need, without having to beg someone. Apply this to the process of getting and building business and personal credit lines.

In my business, I am applying for and processing at least a half dozen credit line programs at the same time. These may be a combination of personal, business, or both. Each are in different stages of development. For example, I have two seasoned corporations I have built credit with one provider. Also I am building credit for my corporation that has been in existence in 2001. Recently I was offered another preapproved $20K credit card, which I applied for immediately. But

Another provider claimed he could get me a $750K credit line, which I was supposedly "guaranteed". The guarantee was so solid that I have been refunded my original $7K upfront investment that I paid them. I have yet to receive this line.

Anyway, my point is that you cannot rely on any one particular source to come through, especially during chaotic, turbulent economic times. A "guaranteed approval" one day can turn into a decline the next as a result of policies that change almost daily, much to the frustration of borrowers and bankers alike.

There are risks in applying for credit lines simultaneously. If you have more than one business operating out of a single location, DNB may flag one or both companies and you lose all the credit rating you have built up. After getting flagged, I am told this is very difficult to restore.

Another risk is that if you have many applications floating around, if the applications overlap and end up at the same bank or provider, that could cause you to be rejected because it is apparent you are shopping for credit. To help prevent this, only apply for 2-3 credit lines at a time, and make sure with your sources that you are applying to different banks.

Also you could end up with too many inquiries on your personal or business credit bureaus, which could also get your credit request declined. There are special ways to delete and remove inquiries from your credit bureaus, fortunately.

To make the most of this strategy, write down your short-, medium-, and long- term goals. Getting access to the money to run your business is one of the most crucial and challenging endeavors, especially now at the time of this article.

Getting and building credit will help ensure you survive and prosper in these times. Follow these steps, and put into motion several of your credit strategies all at the same time, and your goals will come true.