Marvin Francois, Founder of TakeOff Financial, On All You Need to Know About Business Credit

Make your money make sense. On a recent episode of The Very Necessary Decisions podcast, hosted by Jerlisa “Juju” Fontaine, credit specialist Marvin Francois, founder of TakeOff Financial, shared insights on personal and business credit. Francois, who shifted from stand-up comedy to finance during the 2020 pandemic, has dedicated his career to helping entrepreneurs leverage business funding to grow profitable ventures. His journey highlights valuable lessons on credit and community, offering a roadmap for aspiring entrepreneurs looking to harness financial literacy.

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Comedian Turned Credit Specialist

Marvin entered the finance world after being a stand-up comedian. Born to a Haitian family, he didn’t grow up discussing finances or credit. However, the pandemic allowed him to pivot, discovering a passion for credit as a tool for financial growth. Francois’s journey highlights the importance of financial literacy through self-education and adaptability. His story also illustrates the cultural shift in financial dialogue, as he encourages the Caribbean community to embrace financial literacy beyond saving and spending.

Marvin emphasized the power of building community beyond geographical bounds. Although Brooklyn-born, he found valuable connections and mentorships outside his local area, thanks to online communities. By joining mastermind groups and mentorships, Francois gained knowledge and support that fueled his growth, ultimately bringing his insights back to his community. For him, community is both given and created, and he encourages everyone to seek the supportive networks they need actively.

Personal Credit vs. Business Credit

A major topic of the interview was the role of personal credit in obtaining business credit. While it's possible to get business credit without a strong personal credit profile, Marvin believes good personal credit makes the process faster and allows access to larger funds. He explained two routes: personal guarantee and non-personal guarantee funding. Non-personal guarantee funding depends solely on business credit but often offers limited funding. In contrast, personal guarantee funding, which leverages an individual’s credit, opens the door to more substantial and versatile business credit options.

Building a Strong Credit Strategy

Marvin highlighted the need for a clear plan when seeking business funding, noting that entrepreneurs often desire large credit lines without defining their goals. Business funding should align with specific financial needs, such as investing in real estate, where a longer zero-interest period might be essential. Marvin encouraged listeners to assess their funding needs and strategize on how to pay back any credit they utilize, reinforcing that business credit should be treated with as much responsibility as personal credit.

Navigating Types of Credit Providers

Marvin shared insights into selecting the right financial institutions for business credit. He introduced the concept of bank tiers, which range from large, nationally recognized institutions to smaller regional banks and credit unions. Each tier offers unique advantages, with credit unions often providing more favorable terms to new entrepreneurs. By forming relationships with institutions like tier-two regional banks or credit unions, business owners can access funding with fewer hurdles compared to tier-one banks.

Tier 1: Banks like Chase are the go-to for many people but it takes time to build a relationship with them. Information can be found here.

Tier 2: Regional Banks such as Key Bank offer more leniency regarding funding. They do a soft pull on your credit report which won’t leave behind inquiries. More information can be found here.

Tier 3: Credit Unions such as Banner Federal Union are great because they are non-profit organizations that have versatile business credit products. To learn more click here.

What to Avoid When Using Business Credit

A common question among entrepreneurs is what expenses are suitable for business credit. Marvin stressed that business credit should be used strictly for business-related expenses. Spending on personal items, even if they seem indirectly related to work, can complicate tax time and raise red flags with accountants. However, he advised that investing in education or mentorships related to business growth is an acceptable use of business credit. Such investments enhance the business owner’s skills and can lead to greater business success.

Personal Lessons in Career Decisions

Reflecting on his journey, Marvin shared a pivotal decision: leaving his family’s hardware store and moving out to pursue his career in finance. He acknowledged the challenges of this choice, both culturally and financially, but explained that it was necessary to fully commit to his goals. This decision was a step towards personal and professional independence, allowing him to impact the financial lives of others more effectively.

Build A Thick Skin First

Towards the end of the interview, Marvin offered advice to aspiring entrepreneurs who may be hesitant to take the leap into business credit. While he encourages calculated risks, he also suggests starting with personal savings to test the waters before diving into business credit. Entrepreneurship is challenging, and without a backup plan or experience, relying solely on credit can be risky. By first building a foundation with personal savings, entrepreneurs can gain confidence and clarity on whether the business journey is truly right for them.

Marvin’s wisdom extends beyond credit, touching on personal responsibility and planning. His journey emphasizes that success in business requires preparation, knowledge, and sometimes tough decisions. Through his work, he is making financial literacy more accessible, helping people not only survive but thrive financially. For listeners and budding entrepreneurs alike, Marvin’s insights offer a roadmap for a financially fulfilling future.

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Check out Marvin and his work here:

Youtube: https://www.youtube.com/channel/UCCU8OcQzN6X00j-CXvWnAog

Business Website: https://takeofffinancial.com/‍

Business Instagram: @marvinfrancois_

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