Secured Business Credit Card Assurances
If you are looking into opening your own business, then you should look no further than applying for a secured business credit card. This is the perfect solution if you are trying to open a credit line for your business and you can enjoy all sorts of benefits from it as well. This can be applied for when opening a business or even when you are in the middle of operating your business. There are just a few requirements that you need to fulfill.
Banks and credit cards usually have the same requirements. These requirements include that you have to open a separate savings account and you also have to make a deposit into that account so that you can be eligible to get a secured business credit or bank card. This is kind of like insurance for the bank or credit card companies in case something goes wrong with your credit line in the future. Getting the card itself will also mean that you pay the application fee and any annual fees that are tied to it over time. This card also comes with high interest fees and this can be quite discouraging.
However, there is nothing to be discouraged about because the benefits that you can get from a secured business credit card far outweigh the disadvantages. Your business can enjoy extended warranties on the machinery that you have invested in. You can get discounts on purchases. You will be covered for any damages or theft. You can enjoy travel insurance and even auto rental insurance. You will also be protected from potential overdraft and to make things easier for you, you get an annual report to show you where all your money has been going by using the credit card. These are just some of the things you and your business can enjoy.
Business Cash Advance – Business Funding Made Easy!
There is one question that haunts each and every small business owner: "How do I get enough cash to run my business smoothly?" The question is not as easy as it appears to be. While people who are new to this might be thinking of those nice bank loans and SBA funds, ask someone who has actually tasted the water! Most banks would have a long list of terms and conditions that you will need to fulfill besides the hefty collateral that they would demand before issuing a loan. Talk about SBA funding, well that's too little for the total number of entrepreneurs applying for it. So what other alternative do we have?
Business cash advance is probably the best alternative in such a situation. A cash advance is nothing new, the concept has been around for a while, but with the increasing use of Internet, it is becoming more popular and easier for people to get a business cash advance.
It is pretty easy to get a business cash advance. You can fulfill some easy conditions and easily have a decent fund at your disposal. The most important factor that determines whether you qualify for a business cash advance is whether your business accepts credit card sales. Business cash advance providers provide cash against your credit card receipts.
The typical conditions that any business cash advance providers would ask for are:
The business should be in existence for at least 1.5 -2 years
The business should have a minimum amount ($1500) of credit card sales per month.
Credit card statement or bank statement of 12 months (3 months for seasonal business)
Most small business owners can satisfy these conditions, which makes it a lucrative option for funding their business.
In addition, the application process is very simple. Most good cash advance providers would not charge you any application fee and you can apply for a business cash advance by simply filling out the online application form on their websites.
As a bonus, business cash advance doesn't come with a fixed repayment schedule; hence there are no late fees. Also, in most cases, you don't need to guarantee the cash advance personally.
A small business loan is not just hard to get but often its use is tied down by certain conditions put forward by the lender. Business cash advance frees you from any such bindings - it's your money and you can spend it the way you like. So if you need money for your business now, be it for the recurring expenses, for business expansion, to buy a machinery, purchase inventory, advertising or for any other business expense, don't get frustrated by the NO's you get from the banks. Just say YES to Business Cash Advance to let your business have a smooth sailing.
Typical Rates & Fees Associated with Business Loans
When acquiring a business loan, one can expect to pay different rates and fees based upon the years the business has been in operation, the owner's personal credit history, the business's credit history, and whether or not the loan is secured or unsecured. If the loans are guaranteed, whether or not they are by the government or some other agency can affect the rates as well.
Interest Rates are controlled by usury laws. A lender can safely charge a business up to 10% interest per year and not violate any usury laws. Depending on the type of lender you seek, personal or commercial, this may not always hold true. There are different usury laws governing personal lenders and those that are protected by the Federal Government (commercial banks, credit unions, savings and loans). Typical lenders charge between 6-7%, however, as stated earlier; financial security in the business and the owner play an important role in establishing interest rates. Often times commercial banks offer fixed interest rates, but more often than not, the rates are flexible after a given number of years. Government loans are offered to small businesses that meet certain criteria. These loans are offered at the approximate US Treasury note rate of + 1.7% (fixed rate). Other agencies and specially funded business loans offer rates that are decided by special committees. Usually they are lower because these loans are only available to certain business owners.
Fees come in different increments based upon the institution you choose to borrow money from. Typical fees include application fees that can run up to $500, although, some institutions and loan companies do not charge any application fee. Closing Costs which usually run within 1-2% of the original amount borrowed. Common commercial loans that are under $500,000 are usually at least 2%. Loans above $500,000 usually have fees ranging from 1.5-1.75%. Other fees that one might encounter when borrowing money for his or her business are: appraisal fees, attorney fees, and environmental assessments. These fees may or may not be included in the closing costs. If not included, these fees may mount up to several thousand dollars. It's important to ask your financial institution which fees are included in the final closing costs. Government loans and loans that are offered through agencies that cater to certain small business owners offer fees that are based upon the project size. Most are usually at least 3%, some agencies charge the exact amount of all filing fees and an additional 1-2% of the original loan amount.
Many individuals choose to refinance their residence as means for a business loan. Often times these loans can be acquired much easier than a business only loan. Interest rates are often lower and fixed for longer amounts of time, as well. Fees usually range below 2% and can be included in the loan. Having equity in your home may enable business owners to borrow money with lesser interest rates and fees. However, it is a risky plan. If your payments are not made on-time and in full each month, your home may be sold to cover the loan.
Information About Secured Business Credit Card Offers
Looking for information on how to start your own business? Sure, it means that you need money to start a business but what about all the things that you don't consider, such as warranties and protection from damages? These are things that can be taken care of if you use secured business credit cards. These credit cards exist so that you can lessen your work and concentrate on just the business and how to make a profit. Of course, there are things you need to do and expect when using these credit cards.
First of all, you will need to expect credit or bank card companies to make you open a separate savings account that will just be for your business. They will also expect you to make a minimum deposit into that account before you can even apply for the secured business card. Once you have this you can apply and then expect to pay an application fee for the card. There are also annual fees you will pay and of course, like any credit card, you will need to expect the high interest rates slapped onto your debt over time.
This is not cause to be discouraged though because your business will also be at an advantage when you are using a secured business credit card. For example, you can get extended warranties on machinery that you have invested in. You can also get protection on unwanted purchases or those you have never authorized in the first place. You can get insurances, discounts on office supplies, and even protection from overdraft. And if you really don't know where your money has been going in the past year, banks will even give you reports annually so you can see exactly where it is. You won't have to collect receipts for the rest of your life. Now that is the kind of service that you can expect as a secured business credit card user.