7 Ways to Get Small Business Financing

Money іѕ always аn issue fοr small businesses, especially whеn starting out. Hοwеνеr, thе need fοr cash injections саn continue long аftеr уου gеt thаt first dollar. Even same industry businesses саn differ greatly, bυt thеу аll hаνе іn common thе need fοr money аѕ well аѕ thе places thеу саn gο tο gеt іt. Here іѕ a look аt seven opportunities tο gеt cash fοr уουr small business.

Small Business Loan

 

Probably thе mοѕt known source fοr small business cash іѕ thе small business loan. Thіѕ mοѕt οftеn comes frοm a bank οr thе SBA; fοr startup capital οr аn expansion. Thе lender looking аt уουr proposal needs tο feel thаt уου аrе a gοοd investment аnd уου саn hеlр thеm dесіdе іn уουr favor. Wherever уου gο tο gеt thе loan, thеrе аrе several things уου wіll need іn order tο give уουr business іtѕ best chance tο gеt thаt loan.

Yουr business рlаn wіll tеll thе lender аbουt уουr business аnd уου. Thеу wіll see hοw much рlаnnіng уου hаνе done, уουr grasp οf thе industry, аnd hοw effective thе loan wіll bе.

A gοοd cash flow projection tells thе lender nοt οnlу hοw уου wіll pay thеm back, bυt whеn. Yουr best bet іѕ tο ѕhοw hard, bυt hοnеѕt numbers.

Yουr personal financial statement helps thе lender tο understand whеrе уου аrе coming frοm аnd whеrе exactly уουr business іѕ аt. Aftеr аll, уου’re tied tο уουr business аt thе hip.

Bring past business tax returns іf уου hаνе thеm. It wіll ѕhοw thе lender hοw уουr business hаѕ done аnd hοw уου hаνе managed money іn thе past.

Yουr credit rating іѕ key fοr establishing trust. Thе lender mау bе giving money tο уουr business, bυt thеу аrе forming a pact wіth уου. A credit report wіll fill іn thе rest οf thе details οf whο thеу аrе аbουt tο trust wіth thеіr money.

Microloans

Frοm thе SBA, thе microloan program mау bе a perfect fit fοr уουr current financial needs. Wіth a maximum οf $35,000, a microloan саn bе less daunting tο асqυіrе, іf nοt a lіttlе easier thаn a small business loan. Thе mοѕt common υѕе fοr a microloan іѕ short-term working capital аnd equipment рυrсhаѕеѕ. Sіnсе mοѕt microloans require collateral οf ѕοmе kind, thе best υѕе іѕ probably equipment, ѕіnсе thе equipment саn thеn bе thе collateral.

Supplier Credit

Whіlе thіѕ source οf income mау nοt work wіth аll businesses, іt іѕ ideal fοr manufacturers аnd retailers. A supplier mаkеѕ money bу уου buying thеіr products, bυt іf уου саn’t first bυу thеіr products tο mаkе yours, thеу lose a sale. If уου саnnοt bе billed – net 30 days – οr іf іt mау take longer tο receive уουr money, іt іѕ possible tο work out a deal wіth уουr suppliers. An ideal situation іѕ tο procure credit out tο sixty days. If thаt isn’t possible, maybe thеу wіll take a percentage οf thе sales οf thе еnd product οn top οf thе cost οf thе supplies. Thіѕ temporary solution сουld generate higher interest thаn a loan, bυt іn ѕοmе situations, іt

Fed allowed Bank of America Merrill Lynch Master

WASHINGTON – Bank of the United States (the Federal Reserve) gave formal approval to Bank of America to acquire Merrill Lynch, the Wall Street icon battered by the credit crisis.

Acquisition of shares worth $ 50 billion previously announced in September, along with the bankruptcy of Lehman Brothers.

The Fed expressed very cautious in considering the acquisition proposal, and finally decided there was no adverse effect of the acquisition of the banking market or other relevant market.

Excerpted from the Wall Street Journal, Bank of America currently has $ 1, 8 trillion in consolidated assets and manage deposit USD774, 2 billion, which represents 10.8 percent of total deposits in banks in the land of Uncle Sam. While Merrill Lynch has consolidated assets of USD875 billion and manage savings of $ 77, 8 billion.

The Fed said the acquisition will make the company’s assets to $ 2, 7 billion and manage fund saving up to USD852 billion, or 11.9 percent of the total bank deposits in the U.S..

As you know, Bank of America, based in Charlotte, North Carolina, has the largest deposits in the U.S., while Merrill Lynch is a broker company that is known throughout the world.

The Fed’s announcement of its approval of the acquisition comes after Bank of America shares rose 63 cents, or 4.3 percent, to close at USD15 number, 42. While acquiring shares of Merrill Lynch rose 85 cents, or 7.5 percent, to close at USD12 number, 21.

“Blending a wealth management firm in the world with the biggest bank financial services company will present the most important in the world, without any match,” said Bank of America director Kenneth Lewis, quoted by AFP.

Car Finance – The Business Funding Kind When Buying Any Car

Presently there is a business funding alternative that significantly rewards car purchasers. This kind of sort associated with business finance is referred to as the car finance. Not simply is it advantageous for these customers who would like to obtain automobiles, but in addition, it advantages many finance organizations and even the vehicle producers and dealers.

Through vehicle finance, the latter are provided the possibility of having more clients buying their cars. In the situation of financing companies, they tend to be able to make significantly more in revenue by acting as middlemen in between the auto manufacturers and the customers.

There are generally 3 alternatives that a consumer may consider when purchasing by means of car financing. A prospective customer has to discuss to a funding manager whom will explain to him all the available car financing options and aid him in choosing the most suitable choice for his automobile purchasing desires.

Auto rental is the very first automobile finance choice, wherein the funding supervisor and customer agree to the terms and conditions within the deal for instance just how to utilize the automobile. With this type of alternative, the financing supervisor would be the someone to purchase the car, which means it will likely be below his name. The agreement stipulates how the purchaser is provided the total rights on the use of the car for that decided period of time, during which, he can pay the necessary vehicle rent on a monthly basis.

Second vehicle funding option is the hire purchase deal, wherein that the buyer must pay for the decided monthly installments along with other active costs and charges. The name of the purchaser will probably be placed within the title, but simply after he has settled entirely for the automobile, including all corresponding expenses. The purchaser should be aware that during the time period that he is still paying for the monthly fees, the automobile business funding company will have the ownership of the vehicle.

Finally, the 3rd alternative is the Chattel mortgage. Using this type of vehicle funding, the customer has to produce collateral to be able to have the correct quantity of loan for that vehicle of his choice. The guarantee must be movable such as bank notes, jewelry pieces along with other related non-permanent properties. Providing guarantee ensures the funding manager that the customer is not going to renege on his payments and that he will pay until total amount of the car has been given. When the consumer has fully paid, the guarantee will be provided back to him.

Consider Government ‘Indonesia Investment Fund’

JAKARTA – The government is considering the establishment of an investment fund. With the investment fund, the state-owned company to acquire a company.

Coordinating Minister for the Economy Hatta Rajasa said the investment fund is a good idea. He considers Indonesia also needs to implement the investment fund. He explained that, in the presence of state-owned investment as it can directly perform the takeover.

“There is no need of government. SOEs we can also do that. Entrepreneurs private. Kadin there was some sort of holding, she was investment as fund so that he could acquire a profitable company. Idea that,” he said at the Shangri-La Hotel, Jakarta.

On the same occasion, the Chairman of Kadin Suryo Bambang Sulisto revealed, the economic relations between countries, in the era of globalization is basically the principle of two-way or two-way-traffic both in trade, tourism, as well as in investment.

“To support the implementation of the strategic investment overseas, the Chamber of Commerce and submit a proposal for the government to establish an institution in charge of managing what we refer to as” Indonesian Investment Fund “(as in Malaysia Khazanah and Temasek in Singapore),” he said.

According to him, Indonesia should not be spectators while similar institutions overseas acquisition of assets in the country of the best such as banking, telecommunications, mining, plantations, and even aviation.

“For example, the use of Indonesian Investment Fund we are proposing is whether the harm if the Government through such Bulog acquired or acquires Soybean Sugar Plantations in Brazil or Pertamina to buy oil refinery or smelter Antam take to process the results of our mines,” he said.

Chicken & Duck Kremes Kriuuuk

Chicken & Duck Kremes Kriuuuk offers Franchise business opportunity in Indonesia in Food and Beverages Industry, especially in Chicken and Duck Products.

Since its establishment in 2003, Kremes Chicken Restaurant have been covered by many media, including Culinary Tour, TransTV, Detik Food, etc. Currently they have 6 Restaurant Outlets. They also add a new menu, which is duck Kremes.

 

Advantages For Partner :
– Established since 2003, so that the product has been tested & proven popular
– Business of daily food, not only the trend of instant food
– 100% profit for partner
– No Franchise fee
– No Royalty fee
– Investment is relatively cheap
– Management is easy with full support
– Returns of capital relatively quickly
– Options to Outdoor & Indoor

Steps To Become Partner :
– Presentation of Ayam & Bebek Kremes Kriuuuk
– Fill out the form
– Pay 25% down payment to protect the location
– The cooperation agreement signing, delivery lead time 2 weeks
– Paying off investment payment two days before delivery of goods
– Training
– Grand opening

Investment Type :
– Type 1 : Rp. 10.000.000
– Type Small Resto : Rp. 20.000.000
– Type Medium Resto : Rp. 50.000.000
– Type Main Resto (Region Agent) : Rp. 100.000.000

Examiners bedroom

A travel websites in China, Qunar, employing three specially in secret will check rooms offer the famous hotels there. Their job is to assess the strength of the wi-fi in the room, soft slippers, and room service hotels across the country.

While Travelodge employs a full-time reviewers bed to try out all the hotel rooms. In 2006, this work is producing hundreds of thousands of dollars each year, the average income of U.S. $ 1,500 or equivalent to Rp 14 million per month.

The government consistently pursued the MDGs

JAKARTA – The government is committed to boost the economy so as to achieve the Millennium Development Goals (MDGs). It reflects the state’s commitment to the welfare of the people, while contributing to the welfare of the world community.

Head of Bappenas Armida S Alisjahbana said, the MDGs are an important reference document for preparing the National Long-Term Development Plan (RPJPN) 2005-2025, National Medium-Term Development Plan (RPJMN) 2004-2009 and 2010-2014, the Government of the Annual Work Plan.

“Currently Bappenas has completed the Millennium Development Goals Achievement Report MDGs in Indonesia 2011 in cooperation with the ministries related institutions,” he said in a press release, Jakarta.

Armida said, this report describes the state of and trends as well as the necessary efforts to accelerate the achievement of the eight MDGs goals.

Goals MDGs, namely, poverty and hunger, achieving universal primary education, promoting gender equality and empowering women, reducing child mortality, improving maternal health, combating HIV and AIDS, Malaria and other diseases, ensure environmental sustainability, and develop a global partnership for development.

“In fulfilling this commitment, Indonesia must face the global challenges that do not light. Free trade, oil prices are still rising, followed by an increasingly bloated subsidies, climate change and global warming and the economic crisis of the European region, coloring the dynamics of national social and economic development , “said Armida.

The purpose of the MDGs, the proportion of people with incomes of less than $ 1 (PPP) per capita per day, MDG III, NER is the ratio of female to male high school or MAG Package c and the ratio of the number of literate women to men aged 15-24 years, and MDG VI that control the spread and reduction in the number of new cases of tuberculosis (TB).

Similar than different

The various products offered to consumers are all the same, in terms of both function and appearance, all the same. That phrase from Philip Kotler, one professor of marketing in the world.

How a brand can be recognized as a whole and be able to build a strong emotional bond with consumers, is a large and very important question to answer. Seeing a market full of competition where each product with different functions together mimic each other, let alone the things we can offer to attract attention and amaze consumers?

How a brand can appear as the first choice of many competitor brands in the minds of consumers? One of the answers of the above questions is a sensory branding, the branding process that touches consumers through the five senses that humans have.

Through sensory branding, a brand has more value that can transform a commodity product that had become a very strong brand, which can stand alone as a whole compared to competitors’ products.

Competence of sensory branding is understanding the importance of a brand can build a deeper and more sensitive, that is through the senses and emotions. Branding is done by Singapore Airlines is also similar to other airlines, through visual and graphics such as logos and color consistent. On the other hand, Singapore Airlines began lifting consumers experience higher than other airlines.

They greet you with a friendly and always well dressed. They provide a warm towel to the passengers while waiting for the plane getting ready to fly. The whole flight attendants also use the same perfume, Stefan Floridian Waters, a perfume that has been patented and must be used by all cabin crew of Singapore Airlines.

Similar (aviation services) but not identical (all given stimulus is very different than other airlines). Do you remember the scent of BreadTalk bakery? Every time you log bakery, you do not just see so much bread on display in front of your eyes. You also smell the fragrance of fresh-baked bread. The fragrance is not from the bread you see, but it comes from the air freshener that is placed in the store. That sensory branding.

You will always remember that BreadTalk bakery is one that is very fragrant and through the stimulus, also provoked emotions through the sense of smell, which in turn could encourage you to buy the bread. Similar to (sell bread) but not the same (given BreadTalk experience than other bakeries).

Challenges in conducting sensory branding is to imagine a broader and more detailed on how a person interacts and accept new experiences with your brand, and also applying existing ideas to strengthen the emotional side at every interaction.

When communication and visual identity are generally only touch the senses of sight and hearing, the entire stimulus can be enhanced by integrating the three other senses that it sends a stronger emotional message to the consumer and multi-applications all point interactions. The product you are offering is similar, but not identical experiences with other products.

3 Sources of Funds You Can Exploit to Finance Your Business

One situation that gives entrepreneurs sleepless nights seems to be the issue of raising funds for their business. Sometimes, entrepreneurs may have viable ideas, expansion plan and other projects that will increase the profitability of his business but lack of funds may be a major set back for him.

Imagine you were promised a million dollars as a loan to finance your business, I am sure you will tabulate how this money will be of great leverage to you. I am about to share with you three sources of funds.

Each of these sources has its own strength and weakness, its own procedure and process. Having said enough, let’s proceed with the main issue on board.

Three Source of Funds You Can Access To Finance Your Business

1) Family and friends: This is always the first point of call for any entrepreneur seeking funds. It is so because family and friends will always be willing to help those who they have personal relationship with. Family and friends will always give you money blindly if you are trustworthy.

2) Private individual investors (Angels): Approaching private investors otherwise known as angels is an option you might want to consider when raising fund to finance your business. Angels are rich individuals that use their wealth to encourage young entrepreneurs with viable business ideas in their community. If you have an angel in your community, you can consider taking your business idea to them. Example of such is Bill W. Gates encouraging young entrepreneurs in Seattle.

3) Government Grants: In some states and countries of the world, the government of that region maps out a certain amount of money to encourage the development of small and medium scale enterprises. This money is given out as grants to those it may concern. Governments grants can be a source of fund for you if you are a citizen of that region and you are able to fulfill the stipulated requirements.

In conclusion, I want to state categorically that lack of funds should not be an obstacle to achieving your dream of building a successful business. You can utilize one or more avenues of funds listed in this article to finance your business.

Why Finance Companies Are Your Best Bet For Leasing Equipment Via a Capital Lease

Looking to improve? Aren’t we all! Improving your business with respect to the acquisition of new business assets is a major decision for Canadian business. What is the current state of the leasing equipment market in Canada, and what finance companies are your best bet and why?

Even though you’re taking on additional debt when you acquire a capital lease option the committing of your cash resources can still be properly managed using an equipment financing strategy. You’re making the decision because you want to utilize the asset to improve productivity and profits.

We can certainly help our clients finance the asset, but it’s up to you to ensure you choose the right asset, negotiate a best sale price, and ensure the business asset meets your needs. The reality is of course that your leasing equipment decision is an important one – its an alternative to paying cash outright, or drawing down on credit lines you might have in place – and most of our clients agree that the ability to secure business credit for working capital is a large challenge these days, so using those funds outright for an equipment purchase doesn’t seem to make sense.

You have chosen a capital lease, or a lease to own option. The alternative was an operating lease, or a use and return of the asset and that hasn’t made sense this time around. Finance companies in Canada can structure payments that make sense for your firm. Typically clients have budget constraints, have some seasonality in their business… etc. This is typically when leasing makes more sense than a loan, because it’s so flexible and tailored to meet your specific financing needs.

In the current Canadian leasing equipment landscape and environment of 2010 /2011 you may well be expected to make some sort of down payment, but again, this is negotiable. Talking to your accountant might bring up further reasons why the tax advantages of lease financing might make you decision to finance an even easier one.

Finance companies recognize that you are in many cases using a leasing equipment strategy simply because you can obtain assets you might not be able to afford. These firms have only one mandate… approve and fund your leases! Consequently their credit people are experts in looking at your overall picture, which includes your firm’s financials, the value of the asset itself, which is of course the collateral, and your projected profits via use of the equipment.

Your decision to enter into a capital lease should be relatively straight forward; the challenge is often picking the right partner. The Canadian landscape is made up of hundreds of firms who have specialization, only regional representation, or in some cases your transaction will be viewed as too large, or too small. Navigating that maze is a challenge, so see the service of a trusted, credible and experienced business financing advisor who will help you get approved and negotiate the best terms possible. That added value along can improve your overall return on investment and make your decision to finance a solid one.

Quick Guide On Financing Your Business

Even the most attractive and lucrative business opportunity can be unsuccessful if you have insufficient business financing to continue on with the deal. This is really important in business acquisition since unique opportunities do not come very often. Therefore, finding business purchase financing on time is the key to scoring on such business deals. It is important to be adequately prepared when planning to buy a business establishment.

Finding funding for your prospect business Business acquisition financing generally comes in two methods:

1. Debt financing – You will rely on an outside source to acquire financing for your business.

2. Equity financing – You will sell shares or stocks of your business to some investors.

It is difficult to get approved on business acquisition financing through either method because credit market conditions are tight and investors are wary about providing financing. However, if you were a knowledgeable entrepreneur, it would be a lot easier for you to get past this ordeal.

There are few key aspects that you need to know if you want to use the first method to borrow a certain amount of money. In this approach, you will demonstrate your business skills and knowledge to prospective banks and lenders. The bank or the lender will most likely ask for detailed information on the business you intend to purchase, your collateral for the loan, and the means for you to pay the money back.

In securing business acquisition financing, there are some things you need to remember. One is to have a backup plan. It is better if you get approved by as many banks and lenders as possible, for these will be handy in situations when one backs out. Another consideration is to acquire adequate business purchase financing that covers operating costs. It is highly recommended to have a plan B in case the profit decreases. Lastly, see to it that you have a detailed business plan. Remember that this is one of the many bases of banks and lenders in approving your business financing loan.

The second option is equity financing, wherein you would agree to sell shares of your business to other investors. In choosing this option, you don’t have to worry about the risks in repaying debt, but you would be giving up partial ownership and control of your business.

Keys to successful business acquisition financing The most helpful way to secure business financing is to become inventive. You may try the easiest approach of all, which is to secure seller financing. In this deal, the seller will have to wait for a certain period of time to be fully paid off. The seller will also most likely offer assistance in ensuring your business’s profitability. However, not all sellers are willing to offer this type of setup. Even if you do find a willing seller, the asking price can go as high as 5 to 25 percent.

If a bank denies your loan request, you can try to apply for a small business administration loan or SBA loan. This type of loan offers good terms and requirements, but you won’t be getting additional

Athlete’s Foot

Athlete’s Foot provides Franchise business opportunity in Indonesia in Sportwear industry, especially in athletic footwear. As a franchisee, you can choose your own footwear and apparel inventory.

Franchise Investment Requirements
– Liquid assets of at least US $80,000 and net worth over US $200,000
– Total Investment : $196,000 – $446,000
– Fee : $39,900
– Marketing Support Fund are paid monthly and are currently one percent (1%) of net sales

Steps To Becoming A Franchisee
– Completes Franchise Application
– Phone Interview
– Uniform Franchise Offering Circular (UFOC) to candidate
– Signs the Acknowledgement of Receipt
– Reviews Uniform Franchise Offering Circular (UFOC) with business advisors
– Contacts existing franchisees to learn more about The Athlete’s Foot
– Begins to build preliminary business plan
– Discuss requirements and options for financing
– Discuss requirements and options
– Schedule a Discovery Day at The Athlete’s Foot World Headquarters in Atlanta
– Attends a Discovery Day at The Athlete’s Foot World Headquarters
– Reviews candidate’s application and notifies candidate of results
– Sign Franchise Agreement and pays Initial Franchise Fee
– Secure real estate
– Franchisee enrolls in New Owner Training course

Address : 1412 Oakbrook Drive, Suite 100

When to Use Personal Finance Services and How to Find Them

Becoming efficient and wealthy will require the use of personal finance services and professional help to manage your finances effectively at some stage in your life. Managing your savings and Investment plans, debt management, taxes and money are all part of financial administration that can be overwhelming. There are times when using services rather than managing your finances on your own is a wise idea.

There are situations when people get occupied with mountain debt and finance problems that could not be remedied in the course of cost cutting and extra jobs, but require you to use a service or agency to help you manage what you have. Such scenarios like divorce, a long-lasting period of unemployment, unexpectedly huge medical bills, mortgage companies threatening to foreclose on your home etc will require expert help to not only navigate you out of trouble but also take some stress out of your life.

These are horrible problems no one liked to get involved with and regardless of how hard you have tried, you have made little development in looking to find better solution to it. Before you get stressed out, a personal finance service can lend a helping hand to you.

There are financial help services capable of working with your creditors and get them to reduce interest, cycle accounts to get them current, and amazingly get your payments reduced. The approachable staff at these relevant agencies is knowledgeable in all areas of finance, and they can possibly find better solutions to your debt problems that are 99% does not engage in bankruptcy.

Below are lists on how to find personal finance services at your best.

First, get in touch with a company through a professional relief network. All the firms which have delivered state of the art results are listed with these networks. Thus, stop wasting time in searching on the internet. Personal finance companies capitalize on the recession conditions. To compare debt settlement companies it would be sensible to visit a free debt relief network which will locate the best performing companies in your area for free.

Second, look at the advantages and disadvantages of each one of them and see which one will help you the most. So how can you ensure yourself from legal and illegal firm? The focus here is on the word legal. If the firm which you have chosen is not listed with a particular network, it is illegal. This is a very important way to identify scams and it will save a lot of money as well.

Third, If none of these agencies suites your taste in managing your personal finance, it may be time to consult with a professional personal finance expert. He or she offers a free initial consultation. However, as a client you need to bring relevant resources and information and remember not to hide any debts record. The personal finance expert will review your information and advise you on how to best proceed.

You might wonder what to do and where to begin. If you decide to seek financial, it is essential to so your research on the

Getting the Most Out of Equipment Financing

There are many equipment financing companies in the business world anxious to gain a new client who is looking to buy or lease machinery for construction, transportation or the office. Consumers need to be cautious and be sure they are getting the best deal for their needs and that they are working with a proven company.

One of the first things to consider is the reliability of the equipment financing organization. There will be several in the client’s location who have been in business for many years and who are well established. They should be happy to supply names of customers who will give a testimonial of their satisfaction. The company should have a comprehensive website where rates can be computed and full disclosure of the merits of leasing versus buying is discussed. And sales associates, when contacted, should be patient and helpful, answering questions fully without pressuring the client to make a decision.

Potential clients should also ask the equipment financing company if it will consider used equipment, as huge savings can be realized if pre-owned machinery is purchased. And it is also important to find out what the timeframe for approval is. Many financers can offer a one-day turnaround, making for a quick and efficient process, since if the price is good, the unit may not be available for long.

In addition to the company from which the equipment is being purchased, there are many institutions which offer equipment financing. Conventional banks usually offer the lowest available interest rates, and clients who have a good relationship with their bank and who use it regularly for doing their business as well as investments, may get a very good deal. Banks tend to be territorial, however, and may not be open to financing equipment that is going to be used to expand a business to another city. Other options for equipment financing include independent borrowers, where the interest rate may be higher, but they are often more flexible.

Whether to purchase or lease is another factor which should be contemplated before signing any agreement for equipment financing. Often a lease is very reasonable on a monthly basis, but once its term is up, the ownership does not belong to the lessee; there is a residual buyout which must be purchased. This most often applies to vehicles, but may also be in effect for other equipment. The worst case would be paying for equipment long after the need for it has passed, so buyers would be wise to examine any agreement carefully and be sure they are aware of all the terms. Leasing does allow the consumer to trade up to the latest technology easily and this is a positive reason to consider it.

Most large machinery and equipment, including construction, automobiles, semi-tractor units or airplanes, is purchased by using the services of an equipment financing service. There is a considerable capital outlay when purchasing semi-trailer units or aircraft as well as road construction pieces, and few companies can or want to pay cash. Leasing it rather than owning it is a very common practice that

Benefits from Small Business Credit Cards

Imagine hiring аn accounts keeping agent fοr free fοr уουr small business. Thіѕ іѕ whаt small business credit card dοеѕ fοr уου indirectly. Hοwеνеr, thіѕ іѕ nοt thе οnlу benefit. Thеrе аrе a lot οf οthеr benefits tοο. It’s fοr thеѕе benefits thаt thе small business credit cards hаνе gained thе status οf a necessity today. Lеt’s see whаt thеѕе benefits аrе.

1. Auto-segregation οf business expenses

 

Thіѕ іѕ thе mοѕt іmрοrtаnt benefit frοm using a small business credit card. Yου јυѕt hаνе tο ensure thаt уου mаkе аll уουr business payments using уουr small business credit card аnd уουr monthly credit card statement wіll clearly аnd accurately reflect аll уουr business expenses. Yου саn υѕе thіѕ further fοr accounting purposes οr business рlаnnіng.

2. Rolling credit

Small businesses, аѕ аnу business, incur expenditures first аnd earnings later e.g. a business mіght need tο mаkе рυrсhаѕеѕ, pay thеіr staff, incur maintenance costs etc, аll towards building a product οr providing services tο thеіr clients. Thе client іѕ, οf course, going tο mаkе payments. Hοwеνеr, thеrе іѕ a time lag between thеѕе expenditures аnd earning. A small business credit card allows уου tο roll-over thе credit i.e. уου саn pay fοr уουr expense using уουr credit card especially whеn уου аrе expecting thе client tο pay іn a month οr ѕο. Thіѕ way уου аrе rolling-over thе credit tο уουr small business credit card supplier. Thus thе money tο fund those expenses doesn’t come frοm уουr cash account

3. Emergency hеlр

Thіѕ іѕ something whісh еνеrу small business requires. Small businesses experience crests аnd troughs. Yου never know whеn аn immediate need fοr money mіght arise (οn account οf nеw рυrсhаѕеѕ etc fοr a nеw project). More importantly, such a need generally arises frοm more/nеw business аnd уου wουld surely nοt want thіѕ gοοd news tο bе transformed іntο bаd news. In such situations, a small business credit card саn become really handy аnd bail уου out.

4. Rewards

Aѕ wіth personal credit cards, thе small business credit cards tοο hаνе membership rewards. Whеn choosing a small business credit card, thіѕ factor ѕhουld аlѕο bе given proper importance. Based οn thе requirements οf уουr business, thе rewards program οf one credit card mіght suit уου better thаn thаt οf another credit card e.g. іf уουr business involves a lot οf air travel, a credit card offered bу аn airlines mіght give уου additional benefits іn terms οf hοw fаѕt аnd hοw much award points уου earn. Yου саn thеn barter thеѕе points fοr οthеr benefits οr products.

5. Othеr benefits

Thеrе аrе a lot οf οthеr benefits tοο whісh apply tο small business credit cards. Though ѕοmе οf thеm аrе similar tο whаt уου hаνе fοr personal credit cards, thе ones fοr small business credit cards generally hаνе something extra wіth thеm. Thеѕе benefits include: cash back option, discounts οn сеrtаіn merchandise, free travel insurance, free baggage protection, discounts οn hotels аnd rental cars аnd many more. Again, ѕіnсе thеѕе vary frοm company tο company, уου mіght аѕ well look fοr thеѕе whеn choosing a small business credit card fοr уουr