There are traditional sources to acquire capital such as angel investing, microloans, venture capital, and crowdfunding. And there is the credit stacking technique.
Jack McColl is a young entrepreneur in his mid-twenties who grew up in Washington state. Currently living in Beverly Hill, CA, he was able to establish two 7-figure businesses through business credit. After 6 years in business with no education on business credit, McColl faced challenges to grow the business. He then received his first business credit card in April 2020. Since then, he was approved for approximately $500k in credit limit.
In 2017, McColl was approved for a loan to get hotel inventory for his travel company. The first two years of the business scaled moderately, whereas after receiving the loan, the business progressed to the point of gaining market share from competitors and eventually acquiring their business. That was an eye-opening experience for McColl that led him to realize the real power of borrowing money to scale a business.
McColl discovered that the easiest way to borrow large amounts of money was through business credit cards. He launched Credit Stacking in March 2021 to help entrepreneurs learn how to acquire and utilize credit. McColl's goal is to orient entrepreneurs to the strategies of getting approved for $100K in credit limit to support in starting or scaling their businesses in a short period of time.
McColl implies that the first critical step to scaling up business is having access to funds. The next step merely depends on the entrepreneur’s decision on how and where to direct the acquired cash.
In short, the technique is called “Credit Stacking”. It starts with optimizing your personal credit card to achieve trustworthiness with your bank, then understanding when to apply for business credit cards.
Once you have the business credit accounts approved, you may utilize all the credit in that account. The process is then repeated, issuing multiple business credit cards through different banks by building relationships with them. McColl emphasizes another advantage; the status of your business credit account does not impact or report on your personal accounts. Abiding by the goal, you then use your business credit status to prove to lenders that you are reliable. That, in turn, unlocks and sources more funds.
There is certainly more to McColl’s story and the credit stacking technique. The key point to note is that it is achievable, and McColl has proven to have figured out the strategy to flip over his life and business.
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