Connecting people has always been a strong suit of serial startup entrepreneur Peter J. Burns, III.
After decades of using that skill to start hundreds of his own businesses, Burns recently began applying that ability to create a menu of tools designed to help fellow entrepreneurs raise growth capital, with superlative results.
In six short months, Burns has called upon his vast network of financiers and specialists to help hundreds of existing and would-be entrepreneurs raise capital, when many of them had nowhere else to go.
“Traditional banks are failing us when it comes to nurturing small businesses and funding new startups,” said Burns. “This is especially true in the technology sector, where a modest amount of capital can be the difference between success and failure.”
One of the more effective elements of Burn$ Funding’s (www.burnsfunding.com) approach is leveraging one’s own personal credit to raise the necessary capital.
One way he has done this is by institutionalizing the bridge funding process to reduce credit card debt and gain a higher credit score. This allows his customers to secure more capital at remarkably low interest rates, in some cases as low as zero percent interest.
For decades, the bridge funding process has been an act relegated to the back alley, where shadowy figures charging exorbitant rates attached themselves to unsecured credit lenders in hopes of making a fast buck off the backs of consumers,” said Burns. “Not anymore.”
Two factors have enabled the Harvard Business School-educated Burns (www.PeterJBurns3.com) to do this. First, he partnered with three of the premier credit repair companies, such as Midas-Financial, the largest credit repair business in Arizona, which gives the institutions tremendous confidence that the loan will be repaid. Second, the credit repair industry is inordinately fragmented with the best, most savvy companies overwhelmed with business.
“The fact that these companies don’t have to build out the relationships with institutions is attractive to them,” said Burns. “Furthermore, we can loan far more money to our shared customer, which means that they can dramatically lower the all-important credit utilization ratio, leading to an even greater credit score on behalf of the customers. That means the customer gains access to even cheaper money. Finally, the customer will have greater ability to secure more funds through the increasingly popular phenomenon called credit card stacking.”
Burns’ programs don’t end there, either.
Cost Segregation Studies
Yet another of Burn$ Funding’s tools is the use of cost segregation studies to generate capital.
A cost segregation study identifies aspects of property that can be placed on accelerated depreciation life cycles, potentially resulting in huge tax savings for eligible property owners.
“One of the first questions that comes to mind when I tell a small-business owner about it is, ‘Is it legal?’,” said Burns. “Yes, cost segregation is perfectly legal and IRS-compliant. The IRS has even published guidelines for a proper cost segregation study on its website. Even better, it is a painlessly easy process for the property owner, with the help of an experienced professional.”
While the modern application of cost segregation can be traced most directly to two landmark 1997 court cases, Burns was the first to tie cost segregation studies to other business ventures back in 2005. Today, he is partnered with the industry leading professionals in the field.
Leveraging Shelf Corporations
Burns also offers a market in shelf corporations, which are business entities that are no longer being used because their assets have been sold, typically through acquisition. However, these corporations are still viable because they have exemplary credit records. While these entities typically range in cost from $5,000 to $10,000, their clean record can help the entrepreneur secure lines of credit for growth.
“The main objective is to improve the entrepreneur’s chances of gaining access to cost-effective growth capital,” said Burns, who besides being an entrepreneur has also been an adjunct professor of entrepreneurship at Barrett Honors College at Arizona State University and the founder of Grand Canyon University’s College of Entrepreneurship.
One successful funding involved Richard Otto, the President of Metrol Carbon Ventures, LLC, a green energy technology company based in Phoenix.
“Burn$ Funding enabled us to secure hundreds of thousands of dollars in funding, which was enough to begin the manufacturing process for our flagship product,” said Otto. “Before Burn$ Funding came along, we were relegated to approaching traditional banks, which had no interest in loaning us money.”
Blanket Loans Consolidate Many Loans into One
“Blanket loans are ideal for entrepreneurs,” said Peter J. Burns III. “There are countless benefits, too numerous to fully address here.” But Burns did single out a few.
“By consolidating many loans into one, you can free up capital that resides in the individual loans,” said Burns. “This can also lead to interest expense savings, since the interest rates of some of the individual loans may be higher than what the rate would be on a blanket loan.
“This solution also dramatically simplifies the borrower’s servicing of the loan, which is of great importance to entrepreneurs, who are already busy with personal and business priorities.
“Finally, the byproduct of using this product is typically a dramatically improved credit score, creating a multitude of other capital-raising opportunities for the doctor to invest in other properties.”
Burn$ Funding has access to a unique menu of banks and financial institutions that have enabled the company to emerge in 2019 as a powerful resource for entrepreneurs.