Just like a well-rounded toolbox will have various different tools, your financial tool box as a business owner should have various different tools as well. For example you’re not going to use a hammer to drive in a screw right?
We recently helped another client borrow at a 2% interest rate. I’m sure you’re dying to know exactly what he did and what clever secret he used. Well plainly put, he used a balance transfer check like the one below.
So how do you get these? You simply call up the lender, and just ask. It’s very simple. I demonstrate how to do this in the video below on a LIVE call with one of my business credit accounts.
Associated Bank sent us an offer. It says, take advantage of the 0% promotional APR through July of 2020 billing cycle in exchange for a 1.99% balance transfer fee. Let’s just round that 1.99 to 2%. I’ve had this Associated Bank account for 3 years and since then I’ve built up the limit to $100,000. So how do the terms on this $100,000 balance transfer offer compare to a traditional loan for $100,000? Let’s do a side-by-side comparison…
If you were to obtain a loan for $100,000 the average interest rate right now is 6.5% and that’s on the low side so for 18 months you’re going to pay interest of $9,750. With the balance transfer offer I received you would only pay $2,000.
|Traditional Loan||Balance Transfer Offer|
|Total Cost to Borrow||$9,750||$2,000|
So I just saved you $7,750, you’re very very welcome
Number one is you need to know which banks are prime candidates for this, and number two you have to make sure that the products that they’re offering don’t report on your personal credit, otherwise it’s going to hurt your personal FICO score every time you use a balance transfer check like this.
We share this information with our clients, and as a matter of fact we have clients that haven’t paid more than 2% interest for the last 5 years.
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