RAISE MONEY FOR A NEW BUSINESS USING BANKS' MONEY EVEN WHEN THEY WON'T MAKE BUSINESS LOANS. PYRAMID YOUR DEBT

Increase your credit rating and borrowing power with the following technique. Go to your regular bank and ask for a $500 or $1,000 30-day signature loan. They will want to know what you want it for, so have some short-term reason to give them - perhaps there is a sale on and you want to buy something before the sale is over rather than wait a month and have to pay a higher price. Be ready to explain how you will pay it back in 30 days.       Take the money and put it somewhere safe - even deposit it in another bank account, but don't spend it. (Were you lying? No, the sale didn't have what you wanted. Just because you borrow money for a purpose, doesn't mean you can't change your mind. Don't you then have to give the money back? Yes, and that's what you are going to do.) 28 days later, take the money and repay your loan. You will have established yourself as someone who can borrow money and pay it back as promised.       After a few weeks, call on the same bank and ask for a $2,000 30-day loan. Do the same thing again, repaying within the allotted time. As time goes on, borrow larger and larger sums, asking for longer periods to repay, and repaying as you promised or even earlier. Within a year, you will have established such a credit rating that the bank will lend you almost anything you ask for.       You can develop this even further with this second pyramid technique. When you have borrowed, say, $5,000 for a few months, take that to another bank and open a passbook savings account with it. A few weeks later, return to the second bank and ask them for a $4,000 loan with your passbook as security. They are not likely to refuse, because they have $5,000 of your money as a guarantee for $4,000 of their money. Take that $4,000 to a third bank and open another passbook savings account. A few weeks later, ask them for $3,000 loan with the passbook as security. Take that $3,000 to a fourth bank and open yet another passbook savings account. This is all perfectly legitimate because there is nothing wrong with having a number of bank accounts.       At this point in time, you will own three savings accounts with a total of $12,000 in them. Not bad for someone who started with no money of their own. True, you also have loans totalling $12,000, but those loans are fully covered with the savings accounts.       Now start to unwind this position. Borrow $2,000 from bank number 4. Pay $500 to each of the banks starting to repay the loans. At this point in time, you have good standing and credit references at four banks, which you can use in establishing other business relationships.       Finally, close out this situation. At Bank 4 you deposited $3,000, borrowed $2,000 and paid back $500. You still owe the bank $1,500. Withdraw $2,920 of the $3,000, pay off the bank and take the $1,450 to pay the other loans. By leaving $50 back, the account remains open and the bank stands as a good reference for you. Do the same thing with Bank 3, then Bank 2 and finally Bank 1. At Bank 1 you will be $150 short (plus a dollar or two for interest charges) which is the $50 balance in each of the accounts. It would be preferable to pay this out of income to keep the accounts open, but you could close them and use that money.       The whole point of this exercise was to establish a millionaire's credit rating, which you did in a few months and with very little money of your own.

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