How to run a small business w/o the bank involved?

Question

Here's the scoop - my best friend has a small business, but lousy credit, therefore he stays away from the bank. He is landing large contracts with huge payouts. How can he pay his subs, deal with large checks from customers and such w/o having a bank account? Getting any type of bank account is not an option.

Answer 1

There's no need to avoid the banks for simple checking services unless you're trying to avoid government attention. I'm not even going to guess why that might be - although I've got some pretty good ideas.

If he's got such good payouts, he should be able to walk into a bank and open a business checking account without any real problems. Credit issues won't come into play until he tries to borrow money.

Answer 2

You end up carrying a extra thick bank bag of money everywhere you go. The risk using this method is tremendous. All your purchases are done with money orders and/or cash. All your sales must be made in the same manner. Since credit card companies aren't going to touch you and your lousy credit history.

But if you incorporate that all changes. You'll set up an Employer ID number. The money accumlulated has to be a big chunk of money. This way if the bank sees that your balance sheet does not contain the assets necessary to build a line of credit or loans, then you may have to secure loans with CD's already opened with the bank. Default of loan garuantees the bank will get its money from CD's. This is just a little info, but their are many other ways to get money through bank after incorporating.

Answer 3

Compared to offline businesses, the investment required to start an online business is minimal. A popular way of earning money on the internet is by providing information and services. This can be monetised by advertising or charging a subscription. You can also make money online by selling products on auction websites like eBay or through your own website. More information available at http://tinyurl.com/syw6m

Answer 4

People may find it weird when doing business with him. Here is a link to a search I did with the keywords: Business without a bank account
http://aolsearch.aol.com/aol/search?encquery=a35ab6897a15fd4203a48753552079e7beda9907be57780a7ba424fff7cefd99&invocationType=keyword_rollover&ie=UTF-8


Good Luck!

Answer 5

No I have not yet I gave that to someone years in the past. i'd like it if someone may be that creative and if any of my contacts study this, they can e-mail me as to the position to deliver it, lol!