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Business Credit

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Why Should I Separate My Personal Credit from My Business Credit?

Most people who want to start up their own businesses today usually make use of
personal resources to finance their ventures. They either utilize their savings,
loan money from significant others or even use up their retirement funds.

Due to mixing their personal accounts with that of their business'
transactions, these people often risk utilizing their major assets for
collateral, give personally guaranteed business mortgages, and so on. They
often end up pushing their personal credits to the limit. And whenever this
happens, they are left to compromise their personal financial security.

It is sad to say, however, that a significant percentage of small firms operate
through personal credit cards. What these people should actually know and should
be doing in running their ventures is how to separate their personal credit and
their business credit and how life saving this can be, not only for the
company, but for their personal assets as well.

The use of credit cards in small businesses is currently on the rise. What this
does is that it protects both of the entrepreneur's personal as well as business
assets and allows opportunities for better growth and organization to the
company.

Personal Advantages in Using Business Credit

Through separating the personal account with the firm's business account, one
is able to protect private assets in case something goes wrong with the
financial status of the company. In that way, one's personal security
(especially for those with families) would not have to be compromised.

In instances wherein a firm that goes bankrupt does not have corporate credit,
one can be held responsible for any of the company's expenditures both legally
and personally. Separating accounts would entail one to give added protection
on savings and properties that one worked hard for in a long time.

Corporate Advantages in Using Business Credit

Owning a business credit could also improve the financial flow of one's company
as well as help the company grow. One very good advantage is being able to save
a lot of money. By having a good credit profile for the company, business
owners have the option of lowering interests for leases and loans. It also
becomes easier for the company to add more employees, raise inventory and
attain discounts for goods.

Aside from this, it keeps the company's financial transactions organized as one
can more conveniently keep track of the firm's expenditures, which also gives an
easier means to monitor accounting and tax transactions. Most importantly, a
company with a stable and reliable account would be able to attract more
investors and would have a more organized cash flow system.

For any person who wants to start a business, it is important to be smart and
practical in handling finances. By using a separate credit account for that
small company, one does not only protect assets, but one also increases the
chance of the small business to grow and actually earn more.

The use of such credit accounts will help one's company to improve by saving
much time, money and effort. This will even open opportunities for the business
to gain the finances that it needs and develop the company's credibility.

In conclusion, any smart entrepreneur wanting to succeed in business ventures
at the same time protect private resources will surely learn to separate his
personal credit from his business credit.

What You Should Know About Business Credit Card Debt Consolidation

In a lot of small enterprises, owning business credit cards can be very
practical. They do not only become a handy source for finances, they can also
provide the company with a more organized flow of finances as well as many
additional advantages. But as helpful as these credits can be, they can also
very easily become mismanaged and could lead the company to face serious
financial debts.

Often, people who find themselves buried with too much debt are those who have
two or more business credit cards and have remaining balances on all of them.
In situations such as these and even before you find yourself with such credit
problems; it is best to seek debt consolidation help for your business credit.

What Is Debt Consolidation and What Methods Can I Take?

Firms that specialize on assisting you and your business to get out of mounting
debts do debt consolidation. What usually happens is that they take two or three
credit cards that have outstanding balances on them and "consolidates" or
combines them into one. This way, your monthly payments are lowered and they
become easier for you to pay. At the same time, most debt consolidation
programs would temporarily close (but not inactivate) your credit accounts to
prevent the company from further accumulating debt.

But hiring a company to assist you in a debt consolidation program is only one
option. You may also choose to consolidate the company's debts yourself by
getting credit cards offering 0% of interest rates for balance transfers.

This allows you to transfer balances from your previous credit card to pay off
for your debt, while enjoying much lower rates by foregoing interests. However,
with this, you must be careful to choose a credit card that does not charge you
interest for a short period of time and that you are able to pay off all your
debts before interests start being charged again.

Business debt consolidation loans are also another way to help your company get
out of debt. You can save your company a lot of money by taking on a loan to pay
off all your existing credit card balances, and paying off the loan after.

What Are Other Things I Should Consider?

Debt consolidation provides you with so much opportunity to fix your company's
financial problems, but before you decide on any method or sign up with firms
for this process, take not of some things that you must consider.

Remember that a lot of existing debt consolidation firms as well as lenders for
consolidation loans would still charge you a certain interest. And the longer it
will take you to pay them, the higher your interest goes which means that this
is no cause for you to be sluggish in transacting your payments. Also be very
wary of the types of agreements that you sign up with, and make sure that you
are really paying for your own debt and not just for the profit of the
consolidation company.

Consolidating debts that your business credit cards have managed to accumulate
is one very good way to get you and your company from getting stuck in the hole
of financial troubles. This may temporarily decrease your credit score, but once
you have paid off all your debts then it will just gradually improve.

Just remember to be wary with what methods to choose in doing so, and remember
to make timely payments so as to prevent balances and interests from escalating.

What You Need To Know About Credit Repair Business

A credit repair business can definitely help you out in fixing your bad credit
record, especially when you are in the need of a quick financial loan -- either
to be used to fund your business venture or for personal use like home
improvements.

When it comes to putting your credit score back into shape, these experts
utilize their knowledge in the legal department of credit business, accounting,
and finance to get the job done. But in truth, the services offered by credit
repair businesses aren't cheap and may dig deep into your budget. But despite
the possible expense, many are still going for these professional to fix their
credit scores rather than doing it for themselves.

But before you actually consider hiring one, you need to know that there are
plenty of frauds and scammers around pretending to be the real deal -
especially on the Internet. Here are some signs you need to watch out for:

Fraud Signs #1

Some credit repair business offers to fix your credit rating as fast as 30 to
60 days, and many are gullible enough to fall for it. In truth, there is no way
to fix your credit score within that time frame; it may take months, or even
years to get the job done.

It's true that they can check your credit reports for possible transaction
errors, and report this to the responsible agency for correction -- this can
give your credit rating a much needed boost. But if there are no errors found
on your report, then it will take quite some time to get it fixed.

Fraud Signs #2

Real experts in credit repair will give you advice during consultation for
free, and will proceed with helping you fix your credit rating without any
up-front charges. Fraud credit repair businesses, however, are more interested
in getting your money than actually fixing the problem. These individuals will
ask for up-front or advance payments for their service before they even process
your request.

Fraud Signs #3

Many individuals are offering to give your credit history a clean sweep by
using their contacts in credit agencies -- this is practically the most common
sign of fraudulent credit repair business. It is impossible, even illegal, to
erase whole records of credit transactions for a certain individuals by having
contacts in the corresponding bureau.

Some of these frauds will even file false claims on erroneous transactions on
your credit report. But in truth, the transaction will only be temporary erased
while it is being carefully researched by certain departments on the agency. If
there is no error found, the credit agency will systematically place it all
back on your credit history.

Fraud Signs #4

Another illegal credit repair business practice is when they ask you to change
your Tax Identification Number to get a clean credit history. Even if you do
change your TIN, the new one will still be under your name and contact
information, which would still be linked to your old debt. Many of these
individuals would even offer to process your new TIN for a certain fee; if you
do give in to such advice, your money will be long gone while you wait for
something to happen

If you do choose to fix your credit rating by letting experts handle the
situation for you, it's best to take time and check on the credibility of the
service. The common fraud signs will help you distinguish the real ones and the
fakes.

What Should You Consider When Looking for a Business Credit Card?

For a lot of people who are trying to put up their own company, having a
business credit card could be of great assistance. This helps them in
separating their personal accounts from the accounts of their business and
conveniently allows them to manage the company's finances.

It also provides the company with numerous benefits, especially with matters of
financial organization. But with numerous banks offering several varieties of
credit cards along with their corresponding perks and advantages, many offers
can become so appealing to the regular businessman that often it may seem too
puzzling to choose.

Don't Get Easily Tempted

No matter how tempting offers may come, what you must always take in mind is to
never sign up for the first credit card that would seem catchy. As appealing and
as great offers may sound, a smart businessman should always remember to
consider all options available and to evaluate each credit card and its
corresponding package.

Remember to match the credit card's benefits with the nature of the business
that you run. How the company makes use of the credit and to the type of
services that the company offers should all be well thought-out. For the credit
card to be truly useful, it should cater to the needs of the company.

Picking a Credit Card That Caters to Your Company

Different credit card packages offer different benefits. Choose which benefits
your business would most likely be able to use and would most likely contribute
to its growth. For example, if your business entails you to do a lot of
traveling to conduct your transactions, then a credit card that offers free
mileage points could very much save you a lot of money. Sometimes such travel
benefits may also come in the form of other privileges such as discounts from
partner airlines.

On the other hand, if you run a business that would often require you to make
large purchases, then it would be best to sign up with a credit card that has
cash back offers for items bought. In this way, the more you buy the items that
your company needs, the more you are actually able to save money for it.

Aside from this, other benefits that credit card packages may offer may include
discounts from affiliated outlets such as shopping centers, gas stations,
restaurants, and even shipping. All of which are usually very useful in running
different types of businesses.

Remember that business credit cards exist to make life easier for the business
owner. But in choosing a package that would best suit your company, never make
rash decisions without going through all your different options. Set in mind
the services and nature of your business and how these credits could assist
with its operation.

Although choosing a package that would best suit you and your company may seem
baffling at first, but as long as you know which basic qualities of your
company you should prioritize and the corresponding services that the credit
card package can cater then you are right on track to opening an account that
could give your business much of the financial assistance that it would need.

Using Cash Back Credit Cards For Your Business

There are many different types of credit cards available out there and choosing
which can benefit you and your business the most may be quite confusing.

However, if you are one of those people who do not have problems in paying
monthly credit dues and want to save your company a lot of money, then a cash
back credit card just might be perfect for you. Through cash back cards, you
are able to enjoy the usual functions of a regular credit card with an added
bonus, and that is of course, by receive cash back rewards on the purchases you
have made with your account.

How Do Cash Back Cards Work?

A cash back credit card basically gives you bonus points every time you use it
to purchase goods. They would start off by offering you a flat percentage rate
refund in the form of statement credits, a check, gift cards or deposits into
your bank account on the agreed timely basis of receiving your bonus.
Percentage rates may vary with the provisions of your lender.

The methods for how cash is given back to you as reward often differ with your
credit card's terms and conditions, and so it is important to choose which type
of rewarding method would more probably be of help to your business. For
example, if you want cash to come back sooner, then a statement credit method
of rewarding will be best for you as this is done monthly.

However, statement credits may seem as if they are just a mere reduction of
your outstanding balance instead of an actual cash bonus. Checks on the other
hand are usually only rewarded per year, but these can mount up as a huge cash
incentive for your business.

Another method of cash back can also be through discount cards that can be of
big help if you run a type of company that does a lot of purchasing for your
undertakings. No matter what type of cash back method you choose, such a credit
card can really help your business a lot.

How Do Cash Back Rewards Really Help?

But how does a cash back system really help a company by merely giving rewards?
Let us analyze how much a company may spend in a year purchasing supplies like
printing materials, boxes and even calling cards to boost operations. The
company basically purchases all of these things for a whole lot of money during
the year. And when you think about it, the rate of buying these supplies won't
stop anytime soon as long as the company stays afloat.

After all, these are basic goods that a business needs in order to continue
production and generate income. So we would see through this scenario then that
if a company makes use of a cash back credit card for its purchases and gets
rebated for that, it is as if the company is being rewarded for merely going
about its normal transactions.

An additional profit is generated to the company for no real cost at all since
purchased goods with or without cash back would have been purchased anyway. And
obviously, additional amount of money to a company's account can always be very
useful for any type of business.

The bottom line is, that through the use of cash back credit cards, not only is
your business being assisted through the normal functions of a credit account,
such as financing, but it is also given an extra incentive of earning more
money through its reward process.

If bad debt and making the payment deadlines are no such problems for your
company, then you have nothing to lose with this type of credit card and may
even have so much more to gain.

Unsecured Business Line of Credit

To add to the capital of their business ventures, many investors are applying
for financial loans to make it possible. Unsecured business line of credit is
readily offered by lenders, if you are able to pass their requirements.

Unsecured business lines of credit, financial loans usually offered by big-time
lenders like banks, is a credit line which does not involve any collateral. This
is quite favorable for individuals who have no plans to put their assets and
investments at risk in case something goes wrong; as with most cases with
secured loans where many lenders asks you to pledge a security in the form of
residential or commercial properties, equipments, or other assets with the same
value as with the borrowed amount.

This kind of financial aid is quite risky to lenders since they don't have any
security if the borrower fails to pay for it -- a reason for their stricter
application requirements and being accepted for one is almost near to
impossible. Here are some steps to get your started on a successful application
of an unsecured business credit line:

1. State Your Business

First off, you need to establish an independent business existence for the
venture. Your business must be registered as an LLC or a corporation with at
least 2 years of successful operation. The reason why lenders prefer the
operation time of 2 or more years is because of the risk of bankruptcy
attributed to new small business ventures.

Also, you need to include a proper address of your business, and not a P.O. Box
address (which is unacceptable for financial loans). An open communication line
like landline and fax numbers registered under the name of your enterprise is
needed as well.

All legal documents about your business should be at the ready. This includes
permits, licenses, contracts, tax documents, and financial statements like
balance sheets, income statements, and so on.

Some financial institutions might request personal information such as driver's
license, verification of personal and business-related bank accounts, personal
income statements, and tax returns. Be sure to have these at the ready when the
lender requests for them.

2. Register Your Venture To The Proper Agencies

You need to have a credit profile first before you actually apply for a loan.
There are plenty of agencies that offer such services such as Dun and
Bradstreet. Credit agencies are also a requirement, since they can keep tabs on
your credit scores and rate them to be used with financial institutions when you
apply for an unsecured business line of credit.

Also you need to have a Paydex registered under the name of your business
venture. A Paydex provides reports to credit agencies, financial institutions,
banks, and other lenders regarding payment records of certain companies or
business enterprises. The Paydex score is from 0 to 100, where 0 being the
lowest. The bigger the score you have, the more easily you can get any
financial loans you wish.

3. Presenting Your Application

Aside from the requirements above, you need to have a decent proposal at the
ready regarding your unsecured business line of credit. You need to state in
detail why you need the amount, and where you plan to use it. This is also very
important in establishing your credit scores as well. In truth, the lender is
putting you in trust of the borrowed money, and is expecting you to use it
wisely, and to make prompt payments according to your agreement.

Unsecured Business Credit and How it can Help Cash Flow Problems
At some point in time, the reality with most businesses is that fluctuation
periods would eventually come and such companies will have to face problems
regarding their cash flow. A company may experience a financial crisis wherein
more cash may be going out than entering as profit.

It is very important for any enterprise to never run out of funds, especially
if the life of the business is dependent on being able to make large purchases
of goods for production. In such dilemmas that many business owners are either
facing or are at risk to face in the future, having an unsecured business line
of credit could make all the difference.

What Is An Unsecured Business Line of Credit and How Does It Help?

An unsecured credit line for your business is a type of financing resource that
can provide your company with the money that it needs without requiring
collateral. Having such a credit line for your company can be of great benefit,
especially when faced with problems on cash flow. This can provide you with the
temporary funds that your company may need for operations to continue.

This is extremely vital especially when funds are simply either lacking or not
available but your business is greatly dependent on making purchases for
production and profit to come in. Aside from that, this type of credit line can
also be beneficial for commercial use in such a way that it involves fewer risks
for your part as the business owner as no collateral is involved. This means
that you do not necessarily have to gamble your company's other available
resources.

Most lenders offering this credit line can also charge less interest and even a
bigger credit limit as compared to other sources of finance. Assuring that your
company has an unsecured line of credit will be a big step of precautionary on
your part to keep your company afloat, even when faced with financial crises.

What Should I Consider Before Applying For An Unsecured Credit Line?
What you should know about trying to secure such a credit line is that it may
not be as easy as you want it to be or that it may not come right at an
instant. In applying for unsecured credit lines, lenders would usually take the
extra step of checking on your company's credit history. This is necessary for
them to do, as they are risking more by providing you with finances without the
collateral.

And, thus, before you can be approved for an unsecured line, make sure that
your company has maintained a favorable credit score. These lenders are
interested to find out if whether your company is capable of making the right
payments and purchases for both your parties to gain good income.

In running your own company, sometimes being prepared for possible problems can
surely play a big role in helping you ride the tides of business. For sharp
entrepreneurs, even when there is no immediate need for the extra funds, having
an unsecured credit account at hand will be a good cautionary tool for anything
that could possibly go wrong with the business.

After all, you can never know exactly when your company might experience cash
flow problems. But knowing that you have back up when funds become unexpectedly
tight through unsecured business lines of credit, will surely set a whole lot of
difference for your business to step up the ladder.

The Lowdown on Bad Debt Credit Cards

It is common these days to find a lot of people with bad credit scores. Failure
to make payments on time and accumulation of debts are just some of the reasons
that could damage a person's credit history, whether it is personal or for
business. If you are one of these people, then you will know that the major
problem with this is that most lenders would no longer be able to trust you
enough to provide you with financing through credit cards.

And if you are running a business that greatly depends on such credit funding,
then you might feel that you are in a hopeless situation with no way out of
your monetary troubles. However, all may not be lost for you because it is good
to know that a lot of credit card companies today offer an alternative solution
through bad debt credit cards.

What Are Bad Debt Credit Cards and How Can These Help?

A bad debt credit card pretty much works in the same way as most regular
credits, with a few exceptions. This type of credit source is designed to cater
those with poor credit histories, so along with it may be some policies and
terms that are different and even stricter than that of regular accounts.

These tighter policies do not necessarily exist to further trap you into your
financial problems but they actually aim to encourage you to build up your
credit score, just as long as you are able to consistently manage payments and
debts with your existing bank.

Lenders of this type of credit also give you the advantage of reporting
directly to other credit rating agencies about your standing, which could
greatly assist in changing the impression on your unfavorable credit record. At
least, with an existing source for finances, individuals who are highly reliant
on credit to continue production for their businesses are given a chance in
carrying on with their operations, and most importantly, earn in order to pay
for debts.

What Are Some Disadvantages of Having Such Credit Cards and What Should You
Look Out For?

As good as these credit cards may sound, never forget that they are not regular
credit cards and they do have different policies. These come with strict rules
and terms to discourage people from not meeting the right payments. In using a
bad debt card, expect that there will be higher interest rates for your
purchases; therefore you should be very careful in using them.

Make sure that you would only use your credit if it is badly needed and if
there is no other possible resource for funds. Aside from this, never make
purchases through your credit card that you are not capable of paying for on
time. If you are not able to handle using your bad debt credit card
responsibly, then be prepared to further worsen you credit rating and have your
financial problems mount up.

Bad debt credit cards offer people a very good alternative to still own a
credit card account despite having an unfavorable credit score. This may come
with certain limitations that could possibly make your financial standing
worse, but keep in mind that this can only happen if you are not careful in
handling your credit.

This type of credit card aims to encourage people to improve their credit
ratings, so make sure to play your end of the bargain. If managed wisely, these
types of credit cards can surely go a long way in helping you get out of your
financial difficulties and further cater to your personal or business financing
needs.

Take Advantage of Business Credit Card Offers

The business credit cards are not solely designed for large and well-establish
companies but also for other small and intermediately sized businesses. Almost
everyone can benefit from the several advantages that a business credit card
brings. The fact that the monthly cash flows and business cycles exists, there
are companies and organizations that are not able to manage without company
credit cards. Credit cards are invaluable for a host of business purposes from
simplifying the bookkeeping process to limiting and tracking the business's
monthly expenditures.

Additionally, the ownership and use of business credit cards can also help
smaller businesses to develop a tone of credibility and legitimacy. This kind
of perception will not only manifest in the company's vendors but also amongst
the employees and owners, as well. A business credit card is essential for
today's expanding businesses and organizations.

Comparing the Offers

There are several business credit cards available through thousands of
financial sources. Most of these sources offer the best rates with favorable
terms. To become a savvy businessman, it is vital to know the significance of a
business credit card that can offer rewards or several "perks" that have a
positive bearing on the business's purpose, while building a strong credit
history at the same time. And so, it is imperative to choose a card that best
fit the operations of your business.

Be on the lookout for business credit cards with 0% APR or annual percentage
rate on either the first twelve or six months. Depending on your purchases,
there are credit cards offer 5 to 20% cash back bonuses through the CashBack
Bonus feature. Other key features that you must review are the following.

* Annual fees 
* Miles 
* Card purchases and transfers on the balance 
* Liabilities from fraudulence 
* Personalization 
* Additional credit cards 
* Cash rewards on purchases made by additional card holders

Benefits for Small Businesses

Business credit cards do not only provide assistance in the financial aspect of
the business but also bring benefits and rewards to the business owner. You will
be able to make the most out of the business credit card through simple advice.

You can use your business credit card for emergency reasons. The ultimate
challenge for a business is the maintenance of a smooth cash flow. There are
businesses challenged by this factor when they have a small budget. There can
be moments when emergencies occur, like when you are given a hefty order from a
client unexpectedly and you do not have the adequate funds to accomplish the
order; this is where the business credit card comes in handy.

Through the use of the credit cards, you will be able to charge the expenses
and pay it at a later time. After delivering the goods to the client and
receiving the payment, you will be able to pay for the expenses you charged.
Business credit cards are essential in giving you enough time to stretch your
cash and create the necessary adjustments as the situation demands.

Lastly, you will be able to track your business expenses more easily. Credit
cards provide flexibility to track your business expenses conveniently. You can
benefit from the statement of accounts that will reflect all the charges you
made in detail.

Most business credit cards also provide an online account access to its
holders. This would enable you to look into your account right from your
computer at any time.

Small Business Loans Despite Bad Credit

It is a common fact that businesses wouldn't run as smoothly without capital.
Even with a fixed investment for your mini-business, there are always
unexpected expenses that will crop up from time to time. The only way to solve
this problem is through small business loans. But, is it possible for someone
who has a bad credit rating to avail such financial help? Yes, they can!

It is true that having a bad credit rating can hinder the possibility of vying
for a financial loan to help your small enterprise. Many traditional and
conservative financial institutions, like banks, are only accepting individuals
with good credit scores, and shunning of the rest. But that is no longer the
case today.

Secured and Unsecured loans

Considering the number of financial lenders in the market, many stay on the
competitive side by offering small business loans despite bad credit status.
These loans come in two basic forms: secured and unsecured.

Secured loans are financial aids with collateral as security, which can either
be in residential or business property, or any assets with the same value.
Unsecured loans are the opposite; lenders will give you the financial help you
ask without any security at all, which can be useful if you don't have any
plans in putting your assets at further risks.

Secured loans, however, allow you to loan larger amounts, unlike its
counterpart, at lower interest rates and better payment terms. Unsecured loans
are usually attached with a much higher interest rate, and much stricter
payment schemes.

Also, unsecured loans require in-depth credit checks and assurances before you
can be accepted for one. Since this type of loan is very risky, especially on
the lenders point-of-view, they need to maximize the possibility of getting
back what is owed in case things go wrong.

However, this can be easily achieved by approaching SBA or Small Business
Administration for help. This organization will act as assurance to the lender
regarding the unsecured loan despite your bad credit status.

Even if you have a bad credit status, you can easily get a small business loan
by having ready documents that will testify the financial stability of your
business. If you're venture is earning a sizable income, you can provide
financial statements like balance sheets and income statements to give evidence
to that fact.

Looking for a lender

When you search for a lender of a bad credit small business loan, you need to
take into consideration some areas before you proceed. First, you need to keep
in mind on the condition of the loan before you get one. Take into
consideration interest rates, and payment terms and conditions if you can cope
up with it.

This is usually the case when you go for secured loans, and using your
properties as security. You need to keep in mind that failure to pay these
loans can cost you your assets, as well as your business venture.

Also, this is a fine opportunity for you to build up your credit score while
going for the bad credit loan. Try to look for one with payment schemes that
you can readily afford. Prompt payment for these can boost your credit scores
up a notch, which will improve of getting much better financial aids in the
near future.

Secured vs. Unsecured Business Credit Cards: Which is Better?

Having a bad credit record can surely become a hindrance in establishing your
business. Most likely, you will have difficulty in trying to persuade lenders
to give you a credit account, which can be very significant for your company.
Without a credit account for back up, you are placing your company at a very
huge threat of running out of financial resources and even a possible pause in
its operations.

But because your credit score may not be very constructive to your reputation,
you may have very limited options -- either you get an unsecured bad debt credit
card or a secured credit card. In this article, let us know the difference
between these two credit cards and how they can help your business, especially
if you have bad credit.

The Difference Between a Secured and an Unsecured Credit Card

A secured credit card would basically require you to have a security deposit in
the bank before you can use it. This amount of deposited money will be your
guarantee of payment to your lender. Most secured credit cards though, hold
credit limits amounting to a percentage of the balance that you have in your
account so if your business may need to make large purchases that your balance
cannot afford, then this may slow things down.

On the other hand, an unsecured credit card allows you to make purchases even
without the collateral. But such a lose set-up may also charge high rates of
interest and may have stricter penalty agreements for late payments as compared
to that of a secured account. Despite this, a lot of people still prefer this
type of account, as it seems to offer more flexibility and freedom to its users.

However, in cases mentioned above wherein you have a huge debt or a bad credit
record, the chances are that signing up for an unsecured account might be too
risky. After all, if you are not well disciplined in using your credit card,
you might just end up adding more and more to your already escalating debt.

How Do I Choose Which Is Best For My Business?

Because of the fact that both types of credit cards have good and bad
characteristics, the key to choosing which would be best in your situation is
to consider the potential of your company to make the right payments as well as
its needs. Bear in mind that you have already started off with an unfavorable
credit score. So be sure that if you sign up for an unsecured credit card
account, your business is making enough profit to put up timely payments to the
lenders. Otherwise, the high interest rates will just further sink your business
into bad debt.

Also, unsecured credit cards are only best used if the type of business that
you have is really in need of a more flexible system of borrowing finances,
such as that of manufacturing companies that need to purchase large quantities
of materials in order to have production.

In such cases, unsecured credits are reasonable for use. But still, if you are
just running a small business and fearful of possibly worsening your already
damaged credit score, then opting for a secured credit account will be a much
safer bet. With this, you can forego with possibly drowning yourself in
escalating rates of interest that your company might not be able to cope up.

If you have bad credit, the choice for which credit card would be best for you
will basically depend on your business. If your business has high demands for
large purchases and if you as the business owner can make sure that you can
most probably make your payments on time, then there is nothing wrong with
getting an unsecured account.

But if your company does not always need to make huge purchases anyway and you
want to be sure in improving your credit score by avoiding late payments and
huge debts, a secured business credit card is highly advisable.

No matter which you choose, always remember that you can only improve your bad
credit and pave way to the growth of your business if you handle your finances
and credits well.

Protecting Your Funds While Using Business Credit Cards

Business credit cards have gained certain popularity nowadays, especially
amongst small business entrepreneurs. They allow people numerous opportunities
and benefits that assist in helping many companies survive the difficult tides
of the business world, especially when it comes to being an additional source
and organizational system for funds that these small enterprises need.

However, not all of those who have ventured into such businesses have gained
success with their use of business credits. Many people, because of poor
management of such credit cards and business finances have ended up losing more
money than gaining the benefits promised by lending firms. But with these credit
cards' usefulness for a starting business owner, how does one give security to
his funds while using business credit?

Using Business Credit With Discretion

The smartest thing that anyone can do in making use of credit cards is to
utilize it with much discretion. One of the common mistakes of business owners
is relying too much of their companies expenses on debt. Remember that abuse of
this privilege can lead you to obtain bad credit.

Companies should pay notice to their spending with the use of credit cards, and
set limits to amount of purchases that they know they can afford to pay.
Otherwise, they might find themselves in a pitfall of high interest rates and
payment deadlines. As much as possible, when a company is still not earning
much, the use of credit cards should only be limited to emergency cases and not
as the main source of capital.

Make Timely Payments

Another step to take to avoid drowning the company in credit debts is to pay
the bills on time every month. By not missing or delaying a single payment, one
does not have to worry about building up liabilities, accumulating interests,
and paying for penalty charges. It would certainly be very clever for one to
prevent having to deal with additional business expenses. A business owner must
consider that the money that could go to penalties and interest rates can
instead enter the company as profit instead.

Take Extra Precautions

Necessary precautions must also be taken to protect the funds of the company.
For example, if the type of business entails its employees to make use of
business credit cards, then placing a credit limit on each employee will be
necessary to prevent the abuse on the use of credits for personal purchases,
particularly those that are outside of the company's budget.

Aside from this, companies can also maximize provisions offered by credit cards
such as obtaining periodical reports of statement of accounts. Through this, the
company can examine how its budget is spent and could make crucial adjustments
to help the business save money.

Using credit cards in business can really play a vital role in boosting
success. Offering the necessary finances, establishing credibility and
organizing cash flow are only a few of the many benefits that this tool has
introduced to many small business owners.

But, like any tool, business credit cards can be mishandled and could end up in
contributing to the failure of a company instead of the promised progress,
especially with the mismanagement of funds. But if one makes use of these
credit cards wisely by practicing discretion, making all the necessary timely
payments and taking extra precautions, then one can surely prevent the pitfalls
of loosing funds and make the business credit cards work to his or her advantage.

Know the Facts about Bad Credit and Business Loans

Before setting up a business, there are two questions that you must ponder: Are
you willing to finance your own business from your personal assets? or Is
applying for a business credit a more practical approach? If you choose the
latter, it is important to review your credit history.

Having a bad credit must not hinder you from setting up your own business
though it cannot be avoided for the credit history to be reviewed whenever
applying for a loan. This review would play a role in determining whether your
application for a business loan would be accepted or rejected.

A good credit history can help you qualify to a loan with great rates, terms
and conditions. On the other hand, if you have a bad credit history, you do not
have any choice but to settle for a bad credit loan. A bad credit loan is
designed to help people who have bad credit history. Unfortunately, not every
lender offers these kinds of loans. Do not take that as an obstacle that you
cannot overcome but it must motivate you to look for lenders who are willing to
offer bad credit loans.

Terms for a Bad Credit Loan

It is natural for the lender to charge a higher rate of interest for people
with bad credit history, since these people are considered to be a risk factor
in lending a loan. You must be prepared for the higher cost of closing costs,
processing fees and others as compared to a normal loan. However, you will be
assured that your application will be accepted even if you have a bad credit
score; this is a definite advantage despite the high rate of interest.

If you review and compare the loans, almost all of them are similar to
substandard ones but you must understand the reality that because of your bad
credit score, these loans are the only chance you have. There is no other
lender who would accept your application.

Improving the Chances

You have the option of applying for a secured loan to help improve the chances
of the application to be accepted. In a secured loan, the borrower is required
to pledge a type of security when he or she applies for a loan. By doing so,
the lenders would not be at risk. In the event that the borrower defaults on
the payments, the lender can easily retrieve the amount. There are several
lenders who are more open to the subject of a secured loan and it might not
pose a difficulty for you to convince a lender in spite of your bad credit
rating.

You can also hugely improve the chances of your application to be accepted by
building credit worthiness before applying for a loan. You can do this by never
defaulting on payments, keeping your banking transactions and others free of
errors. If have done all of this, then you can apply for a loan. This only
shows that despite your bad credit history, the recent pattern in your
transactions is developing healthy payment habits. Credit worthiness is the
most important determining factor regarding the issue of the chances of your
loan getting approved.

Payments

Once your loan has been accepted, the last thing you are required to do is to
always make sure that you make your payments on time. Doing so would somehow
clear your bad credit history and allow you to apply for proper loans and not
on bad credit loans.




How To Build Your Business Credit Score

For a business to be in the favor of different lenders and to obtain the
necessary funding for its future capital needs, having a favorable credit score
is very vital. But a good credit rating does not come in an instant, and for any
business owner, there are certain steps to follow. These steps will help improve
a business' credit rating as well as maintain a favorable reputation to lenders
and investors.

1. Make sure that your business has a legal entity

Your business will not be able to build business credit if it does not have an
entity unto itself. And thus, it is necessary for you to be incorporated or to
form an LLC (Limited Liability Company). No lender will be willing to give a
business loan to a sole proprietor because this might end up as a personal loan
in disguise.

2. Find a Good Address, a Telephone Line, E-mail and Internet Service

Having a good physical location for your company adds credibility for lenders
to believe that your company is legitimate when your office address is not your
own home address. And having the right means for people to contact you such as
owning a telephone line as well as an e-mail address and even a web site, is
essential especially for faster communication.

3. Check Your Business Listings

Have your company enlisted under all the necessary agencies and make sure that
all your listings are under the same exact legal name as well as with the same
exact phone number and address. It is very important for all your personal
creditors to have you listed under a uniform identity.

4. Obtain All Necessary Business Licenses, Permits, etc.

Obtain a business license for your company and, if applicable, a license for
tax resale in the state, city or county location of your business. Follow all
the necessary regulatory guidelines for running your business.

5. Organize Financial Statements and Tax Returns

Be ready to present at least two years of financial statements, with which the
help of a CPA is highly recommended. And it is also very important, that your
business at this time should already have its own tax ID number. Both federal
and state business tax ID numbers should be enlisted under the same exact legal
business name.

6. Secure Bank References

A minimum of one bank reference is necessary for your business to establish its
score. And it would be advisable if your bank account were at least active for
two years, with a good stable balance of at least $10,000 for the past three
months for it to be in a favorable position for lending. How you manage cash
flow in your business will be reflected from your banking.

7. Obtain At Least Five Trade References

Your business will need five trade references that have given you a credit
account. This may include your suppliers or any firm in which your company has
purchased goods, preferably at a regular basis. Make sure to choose references
that will give a favorable credit history to agencies investigating on your
financial history.

8. File for Credit Report Agencies

Get three business credit cards that do not have personal links to you and that
will give business credit reporting agencies their feedback on your company.

After doing all these, just remember to play your business in a clean and fair
game and of course, pay all your bills on time, and you will surely be able to
attain an excellent business credit score.

Help Your Business with the Unsecured Line of Credit

The importance of maintaining credit in a good standing must be known by every
business owner. Through a sufficient credit line, a business is given more
flexibility in acquiring the necessary funds it requires. As the business
continuous to grow, a bigger credit line is necessary. There are two financing
alternatives accessible that the business owner needs to consider -- the small
business credit cards and the unsecured business line of credit.

The Small Business Credit Cards

One of the two ways that can help the business obtain the financial resources
it requires is through the small business credit cards; it is also one of the
most common tools used in business financing. Small business credit cards can
be ideal for new entrepreneurs since they are easier to obtain and some even
offer flexible options for a business. Additionally, there are suppliers that
accept payments through the use of small business credit cards. This would
enable small business to be at par with other business and maintain the stocks
with the materials needed for its production

However, small business credit cards also have disadvantages. Such cons may
exist in the requirement of guaranteeing the card by newly formed businesses.
This is a common requirement for some credit card companies. And so, the credit
card will appear on the company owners' personal reports on credit.

As you review your business credit card, you should ask the credit card company
if this will be reported under the business name or your name personally.
However, there are several issuers that are open to putting it in the business
name only if the owner has a good personal credit.

The Unsecured Line of Credit

For larger expenses, the unsecured line of credit is a more appropriate
financial resource. The unsecured line of credit can also offer the same
flexibility of a small business credit card but with a lower interest rate and
a relatively bigger credit limit.

There are several creditors who offer secured line of credit but with lower
interest rates. You would also need to use some kind of collateral as a
protection against your debts. Through the use of an unsecured line of credit,
the possibilities in relation with tolerating your assets to be utilized for
security are shunned.

As compared to the application for a business loan, acquiring an unsecured line
of credit is easier. On the other hand, in order for the unsecured line of
credit to be approved, the company is still required to be able to present an
excellent status in their business credit.

Maintaining and Building a Business Credit

If you are looking for a method to fund your business, it is important to
consider if you will qualify for an unsecured line of credit. However, the
business credit score should be reviewed and must be enough to acquire such
credit. Fortunately, it is never too late to improve your score and doing the
correct actions early, such as opening a business credit card account in the
business name only would help you to see improvements on your score.

Building a good business credit is always emphasized whenever applying for a
business funding. From the time you launch your business, it is important to
make it your goal to establish your business credit and keep it in a good
standing.

When the time comes that you will need financing, you will easily qualify for
an unsecured line of credit.

Handling Your Credit Report

Not a lot of people may realize this, but one of the most vital documents that
you should take note of, is your credit report. It is a document that contains
detailed information about your credit history, including identifying data,
credit accounts and loans, records of late payments, bankruptcies and pretty
much almost everything that has to do with how you handle your finances.

This report, depending on its content, can either help you a lot or cause
serious hindrances to you, especially if you are operating your own small
business or about to make certain loans. After all, your credit report will
basically become one of the major defying factors of your creditworthiness.

How Vital Is Your Credit Report?

If you have not been in a situation that has commenced how important your
credit report is, let us allow an example scenario to walk you through. Let us
say that one of these days you may need a certain amount of money in order to
push through the expansion of your business. In doing so, you may need to apply
for a loan or a credit account in order to gain funding for your project.

But before any lenders would actually give you a credit account or give you a
loan, they would first check on your creditworthiness and whether they can
trust you to make the right payments. With this, they would of course check
your credit report to see if you have any histories of bankruptcies, unpaid
debts, late payments and so on. If you do not have a very good credit record,
then no lender would most likely help you out. And this could be very much of a
hassle to you.

Such a situation can be applicable not only to your business needs, but to your
personal needs as well, such as asking for a car loan or a housing loan. Even in
trying to get a credit card account can become a difficult process if your
report is unfavorable. And also, some firms that you may want to do business
with or partner with in the future would most likely want to look up on your
credit report and might be discouraged if it does not project a good image.
What Should You Do To Keep Your Credit Report Favorable?

With your credit report being very essential to establishing your financial
reputation, you must do what you can to keep it as clean and favorable as
possible. Paying your bills on time, preventing debts from mounting up, and
basically handling your finances well are just few of the things that you can
do to keep your record untarnished.

If you realize that upon checking your credit report, there might be some
errors in it, make sure that you exhaust all means to correct it as this can
reflect badly on you. Sometimes these errors may come because of innocent
technical mistakes through your banks, and sometimes they may come with much
serious threats as having people steal your credit identity. In such cases,
contact the credit bureau and report your concerns as well as correct errors by
approaching the source of your report.

Credit reports may be just as important as your passport, birth certificate or
any other legal records. It helps establish your financial identity and
reputation, and may prove to be very useful not only for you to handle your
personal finances well, but even in your business finances.

In trying to do transactions that may involve money and credit with other
people, this will be one of the very crucial things examined. And so, make sure
that you manage your record well and keep it as spotless as possible.

Comparing Small Business Credit Cards & Unsecured Business Line of Credit

The market for distributing credit lines for businesses nowadays has grown.
After all, most entrepreneurs know that owning a sufficient credit line can
give a business a lot of advantages. The bigger the company gets, the more
useful a credit line becomes.

For anyone trying to put up a business, choosing which financing option is best
can get a little intimidating especially since credit lines available for
businesses come in different varieties. Two of the most commonly compared forms
available for business credit are the small business credit cards and unsecured
business line of credit. Knowing the difference between the two and which is
best for the nature of your business can greatly help you in your decision.

Small Business Credit Cards

A small business credit card is basically a credit line catered especially for
companies who are just starting out. This type of resource offers a lot of
flexible options for businesses, which may include discounts and other
penny-pinching benefits that could greatly assist companies especially new ones.

These are also quite easy to get, and a lot of suppliers in the market today
readily accept payments done through these business credits. And so, if you are
trying to start a new business and you still do not have much of resources or
the long credit history, then this type of credit line would be ideal for your
company's use.

On the contrary, as ideal as this type of financial resource may be, it does
have its setbacks. And if you are not careful enough with your credit usage,
you might end up damaging your business as well as your personal credit score.
The thing about most credit card companies offering small business credits is
that they would require a personal-liability agreement for the business owner
to certify.

And so, your company's credit report may appear in your personal score even if
no expenses were done for your private use. On the other hand, there are
lenders who do not necessarily comply with this contract, so if you are afraid
to risk your personal credit score, then looking for credit cards that do not
require personal-liability is highly suggested.

Unsecured Line of Credit

As your company grows, having a bigger credit line would certainly prove to be
more practical. For companies that have large expenses or need to purchase
goods at bigger bulks, then having an unsecured line of credit can offer your
business much more flexibility. This particular financing resource can give the
same services as small business credit cards, but with much lower rates of
interests and a higher credit limit. And unlike secure credit cards, no
collateral is needed to secure your debts.

But, then, your company is required to have an excellent business credit
history in order to be given an unsecured credit line. And if you are still
starting out, most lenders will probably not recognize your personal credit
score. If your company is interested in acquiring this credit line, then you
must first build up your business credit. This type of credit resource is
usually best for companies that have already established themselves, and may
not be the best option for those just starting out.

Choosing a credit line for your company is just the initial step. Pick out
which financial resource can best suit your company's needs at the moment and
make sure to build a very good credit score to enjoy all the financial aids and
benefits that your business may need from lenders.

As long as you are smart with credit usage and pay dues on time, then it is
best for you to take advantage of what these credit cards have to offer you.
Business credit lines will surely play a major role in the success and growth
of your business.

Business Credit Cards and How They Benefit Your Business

Business credit cards nowadays provide many regular people opportunities to
start their own companies by allowing them to borrow the funds that they may
need, while separating business expenses from that of personal charges. What a
lot of business owners don't realize, however, is that the advantage of having
a business credit card does not simply end in having an outlet for loans. It
actually provides so much more benefits that could help the company become more
organized, grow and even earn more money.

Convenient Source of Funds

There are times, especially when one is just starting to put up a business,
wherein the company may need money for capital or for other emergency expenses.
Even if the business owner may not always readily have the funds at hand, having
a credit account for the company can allow a convenient source of cash.

More Organized Financial Transactions and Record Keeping

When a lot of the company's expenditures are done through credit, this helps
the company in keeping track and organizing its expenditure. By having credit
card companies automatically keep records of every transaction done through the
account and having the business owner receive a monthly statement, the company's
work in monitoring expenses becomes less. This would especially benefit those
businesses that often entail a lot of traveling and entertaining clients; as
such situations may not always be practical to keep recording expenses. Most
importantly, easier monitoring for accounting and tax transactions takes place.

Establishes Credibility

Using credit cards for the business can give the impression of a more reliable
method of payment, and this may even make a small business seem more
legitimate. The use of these business credits also helps establish a company's
business credit rating, which may assist in building a trust-worthy reputation
for future investors as well as customers.

Gives Security

A certain degree of protection is given to business owners through purchasing
items for the company with business credit cards, which payments through cash
or other methods cannot offer. This is very important for companies that often
involve traveling to foreign places because a lot of credit cards are
recognized internationally. The same type of security is also important for
businesses that may require much purchasing or selling of goods because
payments done through credit cards can assure the other party that there will
always be money coming.

Gives Businesses Time Allowance

The use of credit cards in businesses gives companies a lot of time allowance
to pay for their purchases, especially when they need the goods in large
quantities. Time is then given to the owner to pay for the purchases, instead
of having to give immediate payment that may not always be readily available.

Consumer Benefits

Business credits also offer a lot of perks to consumers that may cater to the
many different needs of the company. Some of these bonuses may include airline
mileage or cash back that one can take advantage of in doing business
transactions and even save the company a lot of money.

Business owners nowadays need to be practical and clever if they want their
companies to stay afloat. Business credit cards provide companies a lot of
opportunities that help in financial organization as well as save a lot of
money.

By providing businesses a convenient source of funds, an easier record keeping,
credibility, security, time allowance and a lot of other advantages, such credit
cards truly benefit and help out the business owner in more ways than one.

Business Credit Cards: What You Should Know on Their Possible Disadvantages

Having the assistance of a credit card as you are starting on a new business
venture may not be absolutely necessary, but it can surely help you a lot. It
does not only give you a source for funds, but it also adds organization to
your cash flow and in tracking expenses. Aside from this, most business credit
cards offer many perks that can be of great benefit to your business.

But as tempting as these company credit cards may sound, remember that the
common error of a lot of business owners is that they do not consider the
disadvantages that these credit cards may include. Many have made huge mistakes
in running their finances with such business credits that have often led to
personal-liability. This is why you need to know about the disadvantages and
learn what you can do to either handle or prevent them from ruining your
business.

What are the Drawbacks of Business Credit Cards?

What a lot of small business owners do not realize is that when they are only
initially starting out on a business and have not yet established a business
credit score, their professional and personal finances can be blended. This is
because most credit cards require a personal liability agreement from the
business owner at least for the first few years when company is just starting
out.

Therefore, the business owner can be held liable for any problems with the
company's credit account. For example, if your company fails to make payments
on time then this could significantly dent your personal credit score despite
the fact that this is not a personal transaction.

Other possible disadvantages that business credits may have include the large
possibility for employees to abuse the use of company credits by charging
personal purchases. Aside from this, fewer protections may come with it as
compared to a personal credit card because the intended use of these credits
are for company purposes and not personal. Higher interest rates are also
usually charged by business credit cards as compared to personal credit cards.

What You Can Do To Control Mismanagement of Business Credits?

Despite the possible disadvantages that credit cards may bring, remember that
these things can only happen if there is a mismanagement of your credit
account. What you can do is set certain precautions so as to avoid such
drawbacks from happening. Remember to register your company with a business
credit bureau as they can help you establish a business credit score, which
will later on help you forgo with the personal-liability agreement.

Also remember to manage your company's financial transactions well. Build a
favorable credit history by making the right payments and avoid making huge
debts that your business cannot afford. More importantly, when you're only
starting out, remember that it cannot be avoided for you to be personally
liable to debts therefore learn to use credits wisely. It would also be helpful
to take extra precautions by placing minimal credit limits for employees and
reporting abuse of your company's credit account.

Remember that business credit cards can help your company a lot, but they are
not flawless and therefore one has to be smart in using them. Remember to take
the extra precautions and always be careful with your finances.

Through this, when you avail a credit card for your company, you can make it
work for you and allow it to become a partner in making your business grow
instead of giving you liabilities.

Building Business Credit Scores

To be able to avail of many financing offers by many lenders, having a good
credit score is a must. If you have one handy, this will allow you to get a
decent amount with reduced interest rates, with flexible payment terms. But
building your business credit score is no easy feat to accomplish.

If you just have started earning your business credit when you set up your
business venture, then it's quite easy to get a good rating within 1 to 2 years
of its operation.

This is not the case, however, when you have a bad credit rating. You either
have to repair your business credit on your own, or hire a credit repair
professional to get the job done. Only when you fixed your score can you start
to build it up.

But before you can actually start building business credit scores, you need to
have a credit identity first. This can be done by putting up your business as a
corporation or an LLC. These two are perfect statuses to start your business
credit. Since most financial lenders are eyeing clients in corporation or LLC,
having your business as one will allow you to get a loan faster than any
business enterprise.

You also need to set up a credit record with a credit agency, or Paydex. Credit
agencies will keep track of your credit transactions, rate them and give them
scores. This will be used to determine how good your credit rating is when a
financial institution does a credit check.

Paydex scores by big companies like Dun and Bradstreet will keep records on how
well your company is paying your credit bills. The score ranges from 0 to 100 -
the higher the score, the bigger the possibility your loan will get approved.

Now that you have established your credit identity, you need to apply for a
loan before you can actually start building your business credit scores. First,
you can choose either a secured loan, where the lender will ask you to pledge
assets or properties as collateral that will serve as security for the loan.
Note that this kind of loan will let you borrow a much larger amount (depending
on your collateral), and a much reduced interest rate.

Another type of loan is the unsecured loan, which is perfect for those who
don't want to put their assets at risk by setting it up as collateral. Since
the risk to the lender is higher compared to unsecured loans, the financial
institution might be very strict with its application, coupled with a higher
interest rate and payment schemes.

Next is the type of credit you want to be used in your business venture. Below
are the most common credits you can bring out in any lender in your area:

1. Business credit card

Quite separate from a personal credit card, this type of credit is more
lucrative to be used in business ventures due to its reduced APR, and flexible
interest rates (depending on the amount used within the month).

2. Short/Long Term Loans

These kinds of loans allow you to borrow a fixed amount of money from the
lender to be used in any way you wish. Attached with fixed interests with
payment terms ranging from 5 to 10 years depending on the amount borrowed.

3. Lines of Credit (LOC)

Lines of credits are more for business who are into operation 2 years or more.
Credit lines will let you have a fix amount of credit on the bank, which can be
used to pay for unexpected expenses that crop up during the operation of your
business. The interest expense will depend on the principal amount you have
left, and will reduce as you pay your debt until it reaches zero.

Build Up Your Business Credit

It is very important to build up your business credit scores to be able to
avail of financial loans to fund your small business. In truth, small
enterprises are now clamoring about for loans to improve their business by
using the money for improvements, or purchasing inventory to meet consumer
demands.

Building up your business credit takes a lot time and effort, and requires a
paper works by the dozen. Here are some tips on how to get started in giving
your business credit rating a healthy boost:

Set a business identity first

The first step in improving your business credit is to get one in the first
place. This can be done by registering your business as an LLC or a
corporation. Next you need to provide all the necessary paper works required by
lenders such as legal document like business permits and licenses, financial
statements, references, contracts, and so on.

You need to keep in mind that when you register your business as an independent
entity, you need to have a fixed address of your business, as well as open lines
of communication. (Note that P.O. Box is not acceptable as a business address)

You might also need to register your business in a credit agency so they can
keep tabs on your credit ratings and scores. These organizations will act as
reference when you apply for a financial loan that requires a valid credit
report.

Building up your credit status will depend on the financial stability of your
business as based on the financial documents during its operation. Also, prompt
payments are a major issue when it comes to raising your credit status. Fail to
pay on the date agreed; you get a negative score on your credit score if that
happens.

You might also need to keep monitor credit card reports when they are delivered
to you. Try to check for transactions that you did, or did not, make. If you
spot an error, report it immediately to the corresponding agency. This will
result to a higher credit rating.

Get a loan

Before you can actually improve your credit scores, you need to have a credit
to work with. Many small businesses are now opting for business credit cards to
improve their ratings. One reason for this is that these plastics have reduced
interest rates and APR, which is quite useful for making prompt and affordable
payments.

Also, since business credit cards have no principal amounts attached to them,
you can easily control the interest expense you make every month. You can do
some budget planning to minimize expenses and maximizing profit, without
worrying about interests piling up.

Another way to improve your credit status is through credit lines. Many
financial institutions, like banks, are now offering short-term lines of
credits (LOC) for small businesses, with easy payment terms.

Since interest expense on LOC is dependent on the principal amount, you can
easily reduce it by paying the original debt until you reach zero. With this
term in mind, you can easily make prompt payments according to the agreement
between you and the lender.

The gist to build up your business credit is to make prompt payments on your
debts. Whether you have multiple loans or tons of credit cards at your
disposal, you need to make sure that you pay each one on its designated date.
If done right, you are well on your way to improve your credit scores, which in
turn, will improve the financial future of your business.

Build Business Credit and See Your Business Grow

Planning and putting up an owned business is hard. It is a dream of millions of
people around the globe. There are a lot of people who set up their own
businesses but never quite get around to it. This can be due to one of the
factors that can discourage these people from launching their own venture off
the ground, which is the lack of capital. There are also others that fear the
risk of losing their own money.

However, with careful planning, thought and effort, it is possible to raise
some capital that can help to get the business started and it can be done
through building a business credit. For short, you need to borrow against the
business rather then from personal assets.

Carefully Produce a Business Plan and Structure

Setting up a business through business credit takes you in the world completely
different from consumer credit. This only states that you are striving to
project yourself in a business point of view. You must be able to prepare
yourself for the transition it entails to ensure successful venture; from being
an employee to being a business man. The more you think in the business point of
view, the better it is for the business and allows growth in the future.

Maybe the hardest step in building a business credit is to convince the
potential lenders that you are trying to achieve and set up a viable venture.
The quality of your business plan and preparation is important. In order to set
up a proper business structure, you must make sure that the prerequisites, i.e.
licenses, documentations, are in place. You can use the business plan to show
your lenders that you have placed a deep thought about the several elements in
a business: the competition, pricing, products and the markets. If you are not
sure about the business plan, you can always hire an advisor but it is critical
to prepare yourself for the defense of your sales projections and the estimated
costs of the start up and running.

Be an Excellent Credit Customer

There are materials that you will need before the business can become a reality
and these are: the services, equipments, stocks and several other materials
necessary for the business. Be on the lookout for vendors who are willing to
grant you a credit though it may best to choose those companies that will be
able to report your credit history to major business credit reporting agencies.
Good scores in business credit are reserved for other large and stable business,
but with careful and diligent business and credit practices, you can also
achieve a good credit rating.

Get Hold of the Assessment for Your Credit

Preparing and doing a credit assessment is necessary before entering the
business credit market. The credit assessment would determine if you are able
to comply with the lender and the credit bureau's requirements. After achieving
that, keep your eyes peeled for businesses that can issue credit without the
need for an established business or personal credit checks or guarantees. Once
you are able to transact the business with credit vendors, you will be able to
use those references in order to build your credit profile with the agencies
for credit report.

You can also take advantage of those retired or semi-retired businessmen. These
people sometimes volunteer to help start up a business. You can build your
knowledge as you start the journey to a successful business with a good
standing in credit.

You can also utilize the advice they can give about pitfalls and disadvantages
of starting a business to help you better prepare for the future.

Apply Online For A Low Interest Business Credit Card

Business credit cards are the trend in many small business enterprises
worldwide. You can easily apply online for a low interest business credit card
at the convenience of your own home or business, without resorting to visiting
different financial institutions on foot.

Many small enterprises are now using a business credit card to be used in their
venture. Considering the reduced APR and possibly zero annual fee on these
cards, you can make a lot of purchases without worrying about additional
expenses. This is quite handy if you are planning to cut down on business
related expenditures and improving profit.

Since the risks of business are much higher compared to personal ones, business
credit cards may have a higher interest rate as compared to the latter. Even
with such interest expense, many are still opting for its use considering the
practicality of use and benefits they can get from it.

Online research

Applying for a low interest business credit card might sound easy at first, but
it may be a daunting task if it's your first time. You need to do research on
different online financial companies that offer these cards, and find out which
ones have the lowest interest rate attached to it, as well as other charges.

When you are searching for a zero APR business credit card, you might try
searching for those with the lowest balance transfer fees, lowest ongoing fees,
additional charges, penalties, and a low interest rate as well.

Another way of searching for business credit cards online is to look for
special offers that come with the service, such as waived interest fees for a
certain period of time. This will come in handy if you are planning to start
your business using a credit card as capital. You can purchase stocks to meet
consumer demands, office supplies and equipments, and so on; without the
interest expense for a few months.

Some business credit cards have flyer miles as one of its incentives. If you
plan to go somewhere for a vacation or for business-related events, you can use
the flyer miles that you've accumulated using the points you get from your
business credit card.

Other financial institutions also offers cash returns based on the percentage
of the purchases made using the credit card. This is practically one of the
best offers you should look out for when you apply online.

Handy advice

When you apply online for a business credit card, it is a sound advice to not
limit yourself with one or two financial companies. You have to make sure that
you get the best deals, as well as the incentives and benefits attached with
one.

Next, you have to make sure that you have a good status on your business credit
rating so your application can be approved in a shorter amount of time (and
being qualified for one).

You need to get your business and financial documents at the ready, since the
company might require you to fax it to them to process your application. These
documents involve business permits and licenses as proof of the validity of
your enterprise.

Others might ask you to submit financial statements of your venture like income
statements, balance sheets, tax documents, and so on; make sure you have these
ready, just in case.

Accepting Credit Cards: How This Can Help Your Small Business Grow

For a lot of people who are just starting to launch a small business venture,
it may seem quite intimidating to start accepting credit cards as a means of
payment from customers right away. After all, it takes a lot of hard work to
have your company certified for merchant status from a number of banks to be
able to accept credit payments.

Even so, what small business owners must take note is that setting up your
company to accept credit cards can actually contribute many rewards that could
lead to the growth of your business. Here are some of the reasons why accepting
credit cards will greatly benefit your company.

Increase In Sales

With customers being able to pay through credit cards, you are actually
increasing the probability, speed and size of customer purchases. This is
mainly because accepting credit for payment basically does not turn away sales.
And so, when your customers are in the mood to buy your products out of impulse,
then they can readily make purchases even when they do not have cash in their
pockets. In this way, you are doubling the chances for people to be able to buy
your products by adding options for how they want to make their payments.

Contributes to the Convenience of the Customers

This also adds to the convenience of your customers. Take in mind that not all
people may always carry cash with them, especially to those who are traveling.
In fact, so many people today actuallymay find the use of plastic for shopping
very handy and much easier. When customers are pleased with your company's
policies and feel comfortable with your services, you can surely rely that they
would most likely buy from you more frequently.

Improves Cash Flow & Guarantees Payment

A business owner can also rely on better cash flow upon accepting credit
payments because there will surely be money coming in to the company. Unlike
other means of transacting cash such as checks, these credit cards have fewer
risks and are more reliable since payment transactions do not depend on whether
your customer has sufficient funds in his or her account. In addition, this also
guarantees you that you will surely be paid at least within a few days. This
way, you as the business owner can also give just compensations to your
employees and make timely payments for all your dues.

Gives the Company an Established Appeal

Doing business with credit cards can also give your company an appeal of
professionalism to the customers as well as to other firms that you may want to
partner with. Somehow the recognized way of transacting funds through credit
cards and banking adds to your business' legitimacy even if you are only
operating a small business, as it gives a certain impression of trust to the
public. Even through reputation, your small business can already appear bigger
than it really is and this can largely contribute to drawing the public to your
company.

Credit cards can certainly play a very vital role to the progress of your
business. Through helping your company increase its sales, provide customer
convenience, guarantee payment, increase cash flow and even give an established
appeal, accepting credit cards may just be one of your best moves to improve
your company's performance.

In conclusion, no matter how small your business may be at the moment,
accepting credit cards from your customers as a regular part of your services
will surely help your company grow.

Accepting Credit Cards: Merchant Status For Your Business

A lot of people nowadays, prefer the convenience of purchasing through credit
cards. In the United States, nearly 1 in every 3 consumer purchases are paid
through credit. It is crucial therefore for companies to readily accept credit
payments to avoid losing sales.

No matter what type of dealing you run, whether it is a small shop, online
store or mail order business, having a credit card service for customers will
surely come in handy towards your business' growth. However, one cannot just
accept credit card payments in an instant. In fact, one has to apply to a
number of banks for a merchant status to be able to do this. But once your
merchant status is established, then your business will be good to go.

How Does Merchant Status Work?

Your company must first partner with one or a few banks to be able to accept
credit payments. Before doing so, you must apply to these banks to achieve the
merchant status. These banks will work with you to transfer money paid through
credit by customers within a day or two of the sale. They will also be
responsible for collecting the money from the customer, and in return, your
company will pay them a usual commission, ranging from 1.5 percent to 5 percent
for each transaction. Other fees may include monthly support and equipment
rentals.

What Do Banks Look For In Companies Applying For Merchant Status?

Applying for merchant status may be a process much similar to applying for a
loan, as lenders would certainly investigate on your overall financial status.
The feasibility of having credit payments used through your business will
certainly be looked up. Here are some factors that lenders will need to
consider before granting you merchant status:

* Your Business' Type & Length of Time.

Lenders would certainly need to know whether granting your company the status
might have higher risks for accepting credit payment. For example, home-based
companies may have more difficulty to obtain a merchant status as compared to
companies with stores. Aside from this, companies that are already established
for some time in contrast to those that are only starting out may be granted
status quicker.

* Your Sales Track Record.

Lenders would also be interested to know if your company could really bring in
money to the table. If your company has a dependable sales track record, then
the easier for you to achieve status.

* Your Credit History.

General credit-worthiness would certainly be given much consideration. Be
prepared for your personal or business credit histories to be investigated. In
line with this, lenders may also try to check with your previous merchant
accounts, about your business' performance as this give feedback on how credit
worthy you are.

What Should You Do To Achieve Merchant Status?

To prepare your company for application, you must be ready to have all
information about your business as well as your personal credit history at
hand. This includes how you obtain the necessary finances for your company and
how you run things in the company. Requesting for a credit report for your
business before hand will also be a good move.

Most importantly, be sure that you have maintained a favorable business and
personal credit score for lenders to consider you faster. Pay your dues on time
and avoid mounting up huge debts.

In your small business, establishing a merchant account may seem unnecessary or
too much of a hassle at first, however, once you start accepting credit payments
in your business, you will surely realize how much it can contribute to
improving your company.

It does not only by boosting sales, but it can also provide much more
convenience to your customers and even establish your company. More
importantly, accepting credit card payments will surely improve cash flow.

In the end, once you will see how your small business can grow by having a
certified merchant status, you will realize how all of your efforts were
actually worth it.






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