Episode Summary: "Limitless Funding Through Credit Repair" on I Am Charles Schwartz Show

Release Date: January 29, 2025
Host: Charles Schwartz
Guest: Herman Dolce Jr. (Also known as the Haitian CEO)

1. Introduction to Financial Literacy and Business Funding

In this episode, host Charles Schwartz welcomes Herman Dolce Jr., the founder of Bella Sloan Enterprises and a renowned expert in financial literacy and business funding. Together, they delve into the critical aspects of optimizing personal and business credit to unlock substantial funding opportunities for entrepreneurs.

Herman Dolce Jr. [00:00]: "Whether you're just starting out or aiming to take your enterprise to new heights, the I am Charles Schwartz Show equips you with the tools and knowledge to navigate the path to success with confidence."

2. Herman Dolce Jr.'s Journey and Background

Herman begins by sharing his personal journey as a first-generation Haitian immigrant who founded Bella Sloan Enterprises, a financial literacy company named after his seven-year-old daughter, Bella Sloan Dawsey. He emphasizes the duality of his identity, balancing his professional persona with his personal life.

Herman [02:04]: "I have two personalities. There's Herman and then there's Haitian CEO on Instagram. And that's what my daughter is. She's totally amazing."

3. Understanding Wealth Ratio and Financial Preparedness

A significant portion of the discussion centers around the concept of the wealth ratio, which Herman explains as the amount of savings one should have relative to their expenses before venturing into full-time entrepreneurship.

Herman [03:17]: "For me, when I wanted to quit my job and go full time in my business, I saved up two years of income for my household to make sure that if I didn't make any money from Bella Sloan or any projects, I would have that money to at least pay my bills."

Charles concurs, highlighting the importance of maintaining a safety net to manage both personal and business finances effectively.

Charles [03:58]: "I think for your personal life and your professional life, you need to have at least two years for your personal life and then hopefully at least a year in your business life."

4. Strategies for Optimizing Personal and Business Credit

Herman outlines credit optimization strategies essential for making businesses attractive to lenders:

• Clean Demographic Information: Ensure only current and accurate information appears on your credit report.
• Minimize Credit Card Debt: Keep credit utilization between 1% and 9% to maintain a strong credit score.
• Limit Credit Inquiries: Avoid excessive credit applications to prevent appearing desperate for funds.
• Remove Negative Items: Utilize the Fair Credit Reporting Act to dispute and eliminate inaccuracies on credit reports.

Herman [10:49]: "Your credit profile is important. What I mean by that, it's great to have a 700 credit score, 800 credit score, but you have an authorized user and a credit card and you have a 700 credit score. But me, I have a mortgage, I have student loans, I have a closed car note, and I have four credit cards that are over five years old. The bank will look at both of our 700 credit scores. They’ll see that I'm more responsible with money."

5. Tools and Resources for Financial Literacy

Herman emphasizes the availability of free resources to start improving credit profiles:

• Experian.com: Provides free access to your Experian credit report.
• Credit Karma: Offers detailed credit reports from Equifax and TransUnion, though Charles advises caution as the scores may differ slightly from official reports.

Herman [08:38]: "You can go to experian.com they’ll let you see your Experian credit report... and then you can go to Credit Karma. They’ll give you Equifax and TransUnion credit report, and then you can look on there to see the negative items you have that are on there."

6. Advanced Funding Techniques: Stacking Funding Sources

One of the standout discussions is Herman's stacking funding method, allowing entrepreneurs to maximize capital without incurring excessive debt:

1. Multiple Credit Sources: Apply to different lenders that pull from separate credit bureaus (e.g., American Express using Experian, Navy Federal using TransUnion, and Key Bank using Equifax).
2. Maximize Credit Lines: By staggering applications across different bureaus, you avoid multiple inquiries affecting a single score, thereby increasing total available credit.
3. Responsible Usage: Ensure that business funds are used strategically, such as hiring personnel rather than purchasing inventory, to drive business growth sustainably.

Herman [18:23]: "I have this method of stacking funding sources. By leveraging different credit bureaus, I can raise up to $75,000 in funding with minimal interest, effectively maximizing the capital available to my business."

7. Common Mistakes and How to Avoid Them

Herman identifies several pitfalls entrepreneurs often encounter when seeking funding:

• Working in High-Risk Industries: Industries like real estate and trucking are flagged as high-risk by banks, limiting funding options.
• Lying on Applications: Honesty is crucial. Misrepresenting business details can result in lower credit offerings or loan rejections.
• Lack of Professional Business Structure: Businesses should have a separate address, professional email, and a credible website to appear legitimate to lenders.

Herman [33:32]: "Being in a high-risk industry and lying on the business application—these are common mistakes. Banks see these as red flags and are less likely to offer substantial funding."

8. Building a Legitimate Business Profile

To enhance credibility, Herman advises:

• Professional Business Address: Use a virtual address or a registered agent service instead of a home address.
• Business Email and Website: Transition from personal email domains (like Gmail) to professional ones (e.g., info@bellasloanenterprises.com) and ensure the business website is polished and informative.
• Appropriate Titles on Applications: Use titles like President or CEO instead of Owner to portray a professional image that lenders respect.

Herman [30:38]: "Have a real business email, a real business website. The banks actually look you up while you’re applying to see if you’re legitimate."

9. Enhancing Financial Literacy Through Education and Resources

Herman recommends several books and tools that have significantly impacted his financial strategies:

• "Credit Mastery" by Ian Richards: A comprehensive guide on fixing credit.
• "Developing a Corporate Ecosystem" by Ian Richards: Focuses on building business credit.
• "10x is Easier Than 2x" by Dan Sullivan: Encourages thinking bigger to achieve exponential business growth.
• "The Scorecard" by Daniel Priestley: Discusses waitlist marketing and leveraging consumer demand to fund product development.

Herman [20:35]: "I highly recommend 'Credit Mastery' and '10x is Easier Than 2x.' These books transformed my approach to credit and business scaling."

10. Practical Applications and Real-World Examples

Herman shares tangible examples of implementing his strategies:

• Funding Application: By applying to different lenders sequentially, Herman successfully acquired $75,000 in business credit without multiple negative impacts on his credit score.
• Waitlist Marketing: Inspired by Tesla’s Cybertruck pre-order model, Herman advises using waitlists to gauge demand and secure funding before product development.

Herman [18:23]: "By using a waitlist model, I can ensure there's demand before committing resources. This minimizes risk and maximizes funding opportunities."

11. Overcoming Fear and Building Confidence in Financial Decisions

Both Charles and Herman discuss the psychological barriers entrepreneurs face, such as fear of debt and financial failure. Herman advocates for a mindset shift, encouraging entrepreneurs to view investments as opportunities rather than liabilities.

Herman [39:05]: "Everybody doesn't have to be an entrepreneur, but everybody does need to be an investor. You need to be investing in something that you're in control of."

Charles adds that financial literacy empowers individuals to make informed decisions, reducing fear and increasing confidence in managing business finances.

12. Conclusion and Actionable Takeaways

The episode wraps up with actionable advice for listeners eager to apply Herman's strategies:

• Start with Credit Repair: Utilize free resources to access and clean your credit reports.
• Optimize Your Business Profile: Ensure your business appears legitimate with professional emails, addresses, and websites.
• Implement Stacking Funding Techniques: Apply to multiple lenders to maximize available capital.
• Invest in Education: Read recommended books and attend Bella Sloan Academy sessions to deepen your financial knowledge.
• Leverage Waitlists and Market Demand: Validate product ideas through waitlists to secure pre-funding.

Herman [42:14]: "Every business setup step can be completed within 24 hours. Don't let the complexity deter you. Take actionable steps today to build your financial foundation."

For those interested in furthering their financial literacy and accessing resources, Herman directs listeners to Bella Sloan Enterprises' platforms, including Instagram and YouTube, and invites them to join the Bella Sloan Academy for ongoing support and education.

Herman [48:32]: "You can find me on Instagram @Haitian_CEO and join Bella Sloan Academy for comprehensive training and support every Wednesday night."

Key Quotes

• Herman Dolce Jr. [07:07]: "Anyone can get good credit if they do the right things."
• Charles Schwartz [04:55]: "As you get more successful, you will get sleep because it's a new thing for me."
• Herman Dolce Jr. [18:23]: "Stacking funding sources is how I maximize the capital available to my business."

Final Thoughts

This episode provides a wealth of insights into credit optimization and innovative funding strategies that can empower entrepreneurs to scale their businesses effectively. Herman Dolce Jr.'s practical advice, combined with real-world examples, offers listeners a roadmap to achieving financial stability and unlocking limitless funding opportunities.

Ready to take actionable steps? Download the comprehensive guide featuring Herman's credit optimization tips and funding techniques at CharlesSchwartz.com. Begin your journey to unstoppable success today by implementing these transformative strategies.

Thank you for tuning into the I Am Charles Schwartz Show. Stay motivated, stay informed, and make your entrepreneurial dreams a reality!