Small Business Owners | Business and Finance Site

Mar 29 2011

Merchant Loan Or SBA Loan?

Category: Gaston Cantens — admin @ 2:25 am

The recession has sent many small business owners on a rollercoaster ride when it comes to securing funds for their businesses. First, in 2008, small business owners saw bank lending standards tighten dramatically, making it almost impossible to get a bank business loan.

Recently, laws were passed to regulate consumer credit providers, in attempt to decrease consumer debt. Unfortunately, many credit card companies raised rates on business credit cards to compensate. As a result, some merchants were forced to close their credit cards while others had their lines of credit taken away from them.

During this financially turbulent time, merchant loans have always been available for small business owners who operate retail and/or service-oriented businesses. However, recently, the Small Business Administration has introduced a new loan program and made some changes to an existing loan program, in order to make it easier for merchants to gain access to business funds.

Small business owners must now decide which method(s) best suit their businesses.

One new program that the SBA has introduced is the ARC loan program (America’s Recovery Capital), in which struggling small businesses can receive up to ,000 to be used to pay off existing debt. The SBA has also revised its 504 loan program, previously only allotted to small business owners who “…sought new loans to buy real estate, upgrade machinery and make improvements,” (Wall Street Journal). Now, the loans may be used by borrowers who want to “…refinance their existing SBA-backed loans as long as the amount is 50% or less than the total cost of expansion,” (Wall Street Journal).

Merchant loans, however, allow business owners the opportunity to receive up to 0,000 in easy, unsecured business funds.

These funds are suitable for merchants who’ve owned their businesses for at least six months and process at least ,500 in monthly credit card sales. The advance is then repaid via a small percentage that is deducted from the business’s daily credit card sales.

Merchants can visit the SBA website to learn more about these loans and determine if they are a good fit for their businesses. Merchants can also visit merchant loan websites to get a free quote and to learn more about them and whether they would work best for their businesses.

Tags: Bank Business, Best Suit, Business Credit Cards, Business Funds, Business Loan, Consumer Credit, Consumer Debt, Credit Providers, Loan, Loan Program, Merchant, Oriented Businesses, Recession, Rollercoaster Ride, Sba Loan, Sba Loans, Small Business Administration, Small Business Owners, Time Merchant, Turbulent Time, Unsecured Business, Wall Street Journal

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Feb 17 2011

Credit Card Factoring in California

Category: Gaston Cantens — admin @ 7:31 am

If you live in California, you are no stranger to the budget cuts and tax increases that are plaguing the state. It seems as if no one is safe, including students, immigrants, handicapped, state employees and you guessed it, small businesses. In fact, according to the Los Angeles Times, “Last-minute cuts in the California budget are threatening programs that have been instrumental in helping entrepreneurs beat back the recession’s perils.” The article, titled “State Cuts Force Small Business Development Centers to Scramble for Funding,” state’s budget cuts have brought a 32% reduction in funds for Small business Development Centers in California.

To top it off, traditional methods of business funding are scarce. So what can business owners do to combat the epidemic that this making it harder and harder for them to succeed? Credit card factoring provides the funds that merchants need, along with benefits that California small business owners can appreciate.

Small business owners who decide to take part in factoring can receive up to 0,000 in business funds.

The minimal requirements for credit card factoring eligibility have allowed this business funding method to increase in popularity.

Requirements:

Owned business for at least six months

Business processes a minimum of ,500 in monthly credit card sales

Owner has no unresolved bankruptcies

Business has at least one year remaining on lease

The entire process only takes about two weeks (from application to funding) and every three to four months, borrowers can renew their funds.

California is home to over 3 million small businesses and the owners of these small businesses need access to business cash.

Credit card factoring allows them to utilize their own future credit card sales to get cash in advance, a method that encourages sales and business growth.

Get a free online quote today and discover how credit card factoring can help your California small business.

Tags: Bankruptcies, Borrowers, Budget Cuts, Business Cash, Business Development Centers, Business Funding, Business Funds, Business Growth, Business Processes, California, California Budget, Card, Credit, Factoring, Los Angeles Times, Minimal Requirements, Perils, Recession, Small Business Development, Small Business Development Centers, Small Business Owners, Small Businesses, State Employees, Tax Increases

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Feb 11 2011

Database Design Info For the Newbie

Category: Tips — admin @ 2:07 pm

Much of the database design information available on the internet is geared towards the designers. The lingo alone is enough to discourage a lot of small business owners. If that describes you, don’t worry. It’s not as complicated as it seems.

There are some designers that want to keep the whole subject “mysterious”. If they simplified the subject so that you and I could understand it, we might not need them. Luckily, only a few designers think that way these days.

You might want to interview several designers before you choose one or you could simply buy your own database design software and do it yourself. If your system does not need to be too “customized”, there are plenty of good tools available.

Creating a system is really more time consuming than anything else. It isn’t that hard to input information. Anyone can do it. Setting the system up to allow for data entry is the tricky part.

The larger your business and the more complex your system requirements, the longer the designing process will take.

If you do decide to go with a designer, which could be a great idea, you will find that some of them charge by the hour, while others charge a flat “per project” rate. Usually the all-inclusive total project package is your best price. Just be sure that the contract specifies a few things. These are some of the points you might want to include:

Project completion date (discount for being late?)
No additional charge for additional time or equipment needed
Upgrades or changes can be made at your business (no need to call the designer back in)
Support for problems
Guaranteed to perform as specified

If you decide to go with database design software instead of hiring a designer, you can download the programs from the internet.

Some companies offer a free trial. Some offer a basic free system. You pay only if you need their “expert” or “pro” versions. My advice is to give the software a try first. If you feel that you are in over your head, you can always contact a designer.

You may be surprised by all of the things that a database can do for your business. Many companies experience increased profits. All of the companies, with which I am familiar, experience new growth. Your employees and your customers will be happier. So, not only will your new database design be good for your bottom line, it will help create a more positive work environment, too.

Tags: Buy Software, Choose One, Completion Date, Data Entry, database, Database Design, Database Software, design, Design Software, Designers, Download Programs, Free Trial, Good Tools, Info, Internet Companies, Lingo, Newbie, Pro Versions, Project Completion, Small Business Owners, System Requirements

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Jan 06 2011

Credit Card Factoring For a New Company Logo

Category: Gaston Cantens — admin @ 12:00 pm

Changing your company logo may be the last thing on your mind, but according to various experts, you may want to give it a little more priority. Of course, as a business owner, designing logos may not be your forte, but with the funds that you can receive via credit card factoring, you may be able to commission a professional designer to give your company’s logo an overhaul and a fresh, new, modern look.

The Importance of Logos

“[A] logo symbolizes your company and provides an image nothing else can provide,” as written in a Marketing Deviant article titled The Importance of Logo. ”It is one of the many important yet missed elements for many businesses.”

A recent Fortune feature profiles 12 companies, including Apple, Starbucks and UPS, that redesigned their logos, in order to appear more fresh and modern to consumers. Of course, some of the logo changes were met with consumer uproars, while others were widely accepted. Therefore, it is important to be sure that a logo redesign is in fact what your business needs.

Changing Your Logo

When the time comes to update your logo, you can choose to work with a company or an individual. Some may charge a flat rate; others may charge based on other factors. In addition, a designer may create a multiple logos for your company and let you choose your favorite, or he/she may work with you to create the perfect logo for your company.

Funding Your Logo

As mentioned above, small business owners can get the cash they need to finance this endeavor through credit card factoring. Requirements are as follows:

· Must have owned business for at least six months

· Business must process a minimum of ,500 in monthly credit card sales
· Owner may not have unresolved bankruptcies
· One year or more must remain on business lease

You will receive your merchant cash advance (up to 0,000) as a lump sum. Then, the advance is repaid through your business’s daily credit card sales. Only a small percentage of daily credit card sales are deducted until your advance is repaid, which usually takes about six or seven months.

Credit card factoring may be the perfect solution for your business if you want to redesign your logo, or if you need business cash for anything else.

Get a free online quote today!

Tags: Bankruptcies, Business Lease, Business Owner, Card, Cash Advance, Company, Company Logo, Consumers, Create Logos, Credit, Designing Logos, Endeavor, Factoring, Feature Profiles, Fortune, logo, Logo Redesign, Lump Sum, Priority, Professional Designer, Six Months, Small Business Owners, Starbucks, Uproars, Ups

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Nov 29 2010

Debt Management Plan Basics

Category: Credit / Debt Management — admin @ 9:13 pm

Many consumers find that they are no longer able to mange their debt on their own. They need help. Debt management plans are an excellent tool for those that need assistance in eliminating their debt.

If you are considering a debt management plan, you probably have many questions as to how it works and what it costs. Each financial management plan agency will work differently, but in general, you should see some similarities between them all.

The debt management service will typically send a proposal letter to each of your creditors. The letter will request your creditor’s approval to enroll your account in the management plan. It will contain you several items, including your net income, living expenses, the names of your creditors, your proposed repayment amount for each creditor and the date of payment to creditors. This lays out the information for the creditor to see where you are financially and what your plan is.

Most debt management plans take you three to five years to repay your debts. This, of course, depends on the amount you owe and the terms set by your creditors. When you enroll, you should be given an estimate which lists all of your debts, the total debt owed to each creditor, the proposed payment to each creditor and the number of months estimated to complete the plan. You should know up-front how long it will take you to eliminate your debt.

The fees charged for your debt management plan will vary from agency to agency. You will usually pay for a copy of your credit report, a small set-up fee and a monthly administration fee. You want to make sure that the monthly fee is less than $50 a month. Be sure that you understand these fees before you enroll. Don’t trust any agency that asks for the first month’s payment up-front or a percentage of your total outstanding debt as the fee.

Most debt management plans require that you include all of your unsecured debts. There are specialized debt management plans designed for small business owners and those with good credit that allow you to keep one or two accounts outside of the plan. Once in the plan, you will most likely be unable to continue to use the accounts.

If a creditor rejects the management proposal, you can try to work with the creditor to reach an agreement. If nothing can be established between the plan and your creditor, you can elect to proceed with the debt management plan without the creditor. However, you will need to make these payments on your own.

Be cautious when choosing a company to work with. Make sure they are licensed and check them with the Better Business Bureau. It is also a good idea to check with your state’s attorney general’s office for any complaints or investigations.This is your financial security you are dealing with. Make a wise decision and then let the plan help you find financial freedom. Debt management plans are a great way to learn how to manage your finances while eliminating your debt.

Tags: Account Management, Administration Fee, Consumers, Credit Report, Creditor, Creditors, Debt Management Plan, Debt Management Plans, Debt Management Service, Eliminate Debt, Financial Management Plan, Lays, Living Expenses, Mange, Net Income, Proposal Letter, Small Business Owners, Specialized, Thos, Unsecured Debts

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