Participants in the program, which was created by serial entrepreneur Peter J. Burns III, are individuals with credit scores of 750 or higher.
DEL MAR, CALIFORNIA, US, October 27, 2021 /EINPresswire.com/ — Burns Funding, a non-traditional funding resource for entrepreneurs and their small businesses, announced today the launch of an innovative brokerage program, which will help qualified participants monetize their creditworthiness.
Participants in the program, which was created by serial entrepreneur Peter J. Burns III, are individuals with credit scores of 750 or higher. This gives those individuals, or brokers, better and cheaper access to funds from the financial institution that sponsors the credit line or card.
Those funds are then used to help other individuals, typically entrepreneurs that have approached Burns Funding, to lower their credit utilization ratio (ratio), a critical metric used to to determine one’s credit score. The lower the ratio, the better the access to funds for the individual through Burns Funding’s resources.
The broker does not make the investment, obtained from Burns Funding’s line of credit, until the applicant has been pre-approved, contingent upon the lower ratio. Once the investment is made, the broker is scheduled to receive a lucrative fee for his or her participation.
“What makes this work is that Burns Funding has more than $1.5 billion available in non-recourse funding through institutional lenders,” said Burns, a Forbes Business Council contributor. “Those lenders rely heavily on credit scores in determining amounts and rates. An improvement in one’s credit score from mid to high 600s to 700 or better yet 750 can make a big difference in the amount of funds they will have access to.”
The brokerage program is just one tool that Burns Funding has at its disposal.
Burns Funding has pioneered the use of Cost Segregation to allow commercial real estate owners to generate capital (in the form of tax savings) based on a little-known IRS allowance. A cost segregation study identifies aspects of a property that can be placed on accelerated depreciation life cycles, typically resulting in huge tax savings for eligible property owners.
It 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 clients secure lines of credit for growth.
In addition, Burns Funding offers a blanket loan program, where through its prodigious lender network it can help entrepreneurs and investors consolidate many smaller loans into one blanket loan, typically at a lower interest rate, with considerably less maintenance. There are also cash-out opportunities with these loans, providing access to growth capital.
Burns has also been active on many other fronts. Last spring, he launched Millennial Queenmaker as a platform to facilitate the entrepreneurial careers of female millennials. The company has already attracted scores of applicants and has spawned more than a half-dozen businesses.
Millennial Queenmaker has three components:
First, it offers mentoring to young women, who have an operating business and the appropriate funding. The entrepreneur merely needs guidance from Burns or the deep bench of female advisors he has assembled, such as Sue Malone of Strategies for Small Business.
Second, Millennial Queenmaker offers a placement service for young female entrepreneurs, who may or may not have the funding, but are unsure of what kind of business they would like to own and manage. The company has vetted more than 40 businesses (some the of them franchises) that have a high propensity for success. They are only missing two ingredients – the appropriate funding and a smart, ambitious young woman ready to take the reins.
Third, Millennial Queenmaker. through Burns Funding, helps provide the necessary capital.
About Peter J. Burns III
Peter J. Burns III is a serial entrepreneur, who has demonstrated time and time again that he has a keen eye for creating innovative businesses and partnerships.
Based today in Del Mar, California, Burns grew up in a well-established New England family in New Canaan, Connecticut. He was briefly educated at the United States Military Academy Preparatory School at West Point, the University of Virginia (UVa), and finally the Harvard Business School’s Owners and Presidents Management Program. While his two younger brothers went on to have successful business careers, Burns chose the life of an entrepreneur.
Burns adds that his “official” career as an entrepreneur started as a result of his enrollment in an Entrepreneurship course at UVa’s venerable McIntire School of Commerce. His business plan for that course was importing mopeds (motorized bikes) to the US from Europe and renting them to tourists at US resorts. “I executed my business plan on Nantucket after my class was over, made a small fortune and never looked back,” said Burns.
Burns started hundreds of businesses over the next two decades. He then moved to Arizona in the early 2000s and became a pro bono adjunct faculty member at the highly respected Barrett Honors College at Arizona State University. In 2006, he took his teaching practice across town to Grand Canyon University and its entrepreneur-like founder Brent Richardson, where the two men would launch the nation’s first College of Entrepreneurship at GCU.
“The spark behind the college was ignited only a month ago by Peter Burns, a self-made millionaire who is teaching entrepreneur education classes at Arizona State University’s Barrett Honors College,” according to the Phoenix Business Journal. “Burns met with GCU Chief Executive Brent Richardson after, Burns says, ASU and its business school weren’t interested in forming a program specifically targeting entrepreneurs.”
In recognition of his work, Burns was honored by the Arizona chapter of the Future Business Leaders of America its Businessperson of the Year in 2007.
Shortly thereafter, he started Club Entrepreneur as a way to bring entrepreneurs together in an “open-source entrepreneurship” platform. The Phoenix chapter attracted 10,000 members.
In 2016, Burns moved to the West Coast and started Burns Funding as a way to help entrepreneurs secure hard-to-get funding for their businesses.