You may know me from my YouTube Channel Denzel Napoleon Rodriguez, and I'm The Finance Geek. I'm here to introduce you to the method called Velocity Banking!
In the past you may have heard about Velocity Banking in the same sentence as "it's complicated" and even "is it a scam?" This is NOT true, and for many people, Velocity Banking is the first step in a long line of lifestyle changes, but what exactly is Velocity Banking and how does it work?
Velocity Banking is defined as the use of financial and banking products that manage and increase cash flow, to quickly create financial security by eliminating, reducing, or minimizing interest. Velocity banking is a more efficient way to use your current income.
The first thing I tell anyone who is thinking about starting Velocity Banking is to know your 4 Major Numbers: These numbers are Income, Expenses, Debt, and Cash Flow.
Knowing your Income and Expenses is pretty straightforward, what do you get paid and how much are your bills....
One topic I'm questioned about nearly every day is lines of credit People ask about lines of credit in several different ways too, like the direct "Denzel, what is a line of credit?" or "How do I use a line of credit?" I even have people ask how they obtain a line of credit and what all the different types are.
This made me think that I should dedicate specific videos and blogs to the line of credit. So I decided to make a post explaining what a line of credit is, and your options when it comes to choosing a line of credit.
What is a line of credit? According to Investopedia, a line of credit is an arrangement between a financial institution—usually a bank—and a customer that establishes the maximum loan amount the customer can borrow. The borrower can access funds from the line of credit at any time as long as they do not exceed the maximum amount (or credit limit) set in the agreement and meet any other requirements such as making timely minimum payments.
This is a...
Since so much of Velocity Banking centers around the Line of Credit and Cash Flow, I thought we could talk about the 3 different types of lines of credit there are. As a refresher, a line of credit is an arrangement between a financial institution—usually a bank—and a customer that establishes the maximum loan amount the customer can borrow. Read more about lines of credit here or click on the video below to be linked to my YouTube Playlist all about lines of credit.
Types of Credit Lines
There are 3 types of credit lines – home equity, personal, and business. Business lines of credit work similarly to credit cards. The LOC comes with a credit limit, and borrowers make payments every month with interest based off of the amount they borrowed during that period. Your financial institution will most likely have more strict requirements for lines of credit than for business loans. If you think taking out a business line of credit is right for you to be sure to bring...