Day: February 12, 2021

How to Get a 0 Interest Business Credit Card

You’re probably thinking there is no such thing as a 0 interest business credit card. However, that’s not exactly true. While this type of interest rate doesn’t last forever, there are a number of cards that will offer a 0% introductory rate, some of them for a year or more!  

Get a 0 Interest business Credit Card and Make it Work for You

Since a 0 interest business credit card is likely going to turn into a higher interest card after an introductory period, it’s important to know how best to use it while the 0% is available, and what to do to save interest when introductory rates disappear. 

0 Interest Business Credit Card: Top Options

 When it comes to short term funding,  0 interest business credit cards can be a life saver.  Here are some of our favorites.  

Blue Business® Plus Credit Card from American Express

The Blue Business® Plus Credit Card from American Express has no yearly fee. The 0% initial APR is for the first year. After that, the APR is a variable 13.24– 19.24%.

You can get double Membership Rewards® points on everyday business purchases like office supplies or client meals for the first $50,000 spent annually. Get 1 point per dollar thereafter.

You will need great credit to qualify.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

American Express ® Blue Business Cash Card

The American Express ® Blue Business Cash Card is also an option. Note: the American Express ® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. It’s rewards are just in cash instead of points.

Get 2% cash back on all qualified purchases up to $50,000 per calendar year. Afterwards get 1%.

There is no annual fee, and there is a 0% introductory APR for the first year. Afterwards, the APR is a variable 13.24– 19.24%.

You will need great credit to qualify.

Discover it ® Business Card

Lastly, check out the Discover it ® Business Card. It has no yearly charge either, and it also has an introductory APR of 0% on purchases for one year. After that the regular APR is a variable 14.49– 22.49%.

Get unlimited 1.5% cash back on all purchases, without category limitations or bonuses. They double the 1.5% Cashback Match ™ at the end of the initial year. There is no spending requirement.

You can download transactions quickly to Quicken, QuickBooks, and Excel. You will need great credit to qualify for this card as well.

Use Your 0 Interest Business Credit Card to Your Advantage

Since the 0% interest doesn’t last forever, you need to make the most of it while it’s available. If you don’t need all of the funds on every 0 interest business credit card available right now, consider only applying for one at the time. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

By doing this, you can take advantage of the 0% interest longer. For example, get one card, and use it for whatever you need for the time you have the 0 interest.  Pay it off before the introductory rate ends if you can, then stop using it. Apply for the next 0 interest card when the previous introductory rate ends, then repeat the process.  By doing this, you extend your 0% interest period. 

Another possibility is that you may create competition between the cards and be able to negotiate longer 0% interest periods, or at least lower interest rates than would otherwise be offered.

Know Your Other Options

Of course when it comes to funding a business, there are the obvious options. Business loans, business lines of credit, and business credit cards all have their place. But, there are other options that may sometimes work better. You may be able to get better terms or rates, or get your money faster, with one of these possibilities. 

Equipment Financing

If you need equipment, it might be better to consider equipment financing.  You will put up your existing equipment or the new equipment you want to purchase as collateral.  Amounts are available up to $10 million with terms ranging up to 60 months. You will  need a credit score of at least 550. 

Why would you choose this over a 0 interest business credit card if you could pay it off during the 0 interest period?  Well, the short answer is, you wouldn’t.  That is, unless you cannot get a high enough credit limit to cover the cost of the equipment. However, if you need longer than a year to pay it out, you may very well end up with a better rate going this route. 

It’s a complicated risk vs. benefit calculation that must be carefully considered. 

Real Estate Financing

Likewise, you probably will not be financing real estate with business credit cards, even if it is 0 interest. You can get real estate financing in amounts up to $10 million with terms from 6 to 60 months and interest rates as low as 6%.  You will need a 500 minimum credit score, and there are a few other requirements. 

Credit Line Hybrid

What if you could get the same super low or even 0% interest rates you can get in the early days of a business credit card, along with the same rotating credit, but with no documents required and no security necessary? That is exactly what you get with the credit line hybrid, and you can use the funds for anything. 

Not only that, but you can potentially get up to $150,000, and build business credit at the same time! That’s because this type of financing reports to the business credit bureaus, so your consistent, on-time payments help your business credit score grow. 

A credit line hybrid is not hard to qualify for.  Your credit score should be at least 680, and you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have less than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

More About the Credit Line Hybrid

Of course, you’re thinking “that sounds pretty hard to get.” However, if you do not meet all of the requirements, you can take on a credit partner that does mee them.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

Remember, it is your business credit that the payments are reported to.  Regardless of whether you qualify yourself or use a business partner, your business credit will still grow, and you can use this type of funding to finance any type of business need you have. 

Here is another bonus. This is a credit card stacking program, meaning that you are using multiple credit cards at once to create the credit line.  You really can’t do it yourself. You’ll need to work with a business credit expert. However, there is a natural competition created between the cards that increases the chances of extending low interest rates past the introductory period. 

A 0 Interest Credit Card Can Be a Great Tool If You Use it Right

A credit card with a 0% interest rate, even for a short time, can be a great tool to grow your business.  Use it to purchase discounted inventory or supplies in bulk, cover short-term expenses, or to pay off higher interest rate debt.  

However, you have to keep in mind that the best rates won’t last forever.  Use it while you can, but have a backup plan.  Also, be certain you use it for the right purposes.  If you want to buy a large piece of equipment or real estate, something that will take longer than a year to pay, you may want to consider a different type of financing. 

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How to Create a Business Plan

Why do You Want to Create a Business Plan?

According to the US Chamber of Commerce, “One of the cornerstones of launching a new business is writing a business plan.  The plan is a roadmap to a business’s goals and outlines the steps to achieve them.  The plan also serves as a sort of resume to put in front of loan officers, investors, and partners to secure funding.”

See: uschamber.com/co/start/business-ideas/writing-a-business-plan

Benefits When You Create a Business Plan

Every traditional lender wants to see one.  Potential investors also want to see one.  If you are working with a partner you will need one to show agreement on what the plan for the business actually is.  It is also a vital piece of communication with management.

If you want to sell your business, or need to do a business valuation, you need one.  Beyond all of that, you need a plan to follow for your business anyway.  There is a specific format and design that it needs to follow.  Some loan applications have a place for this, but it is best to already have one put together that you can adjust as needed.

You have a couple of options.  You can either hire a business plan writer, or you can do it yourself.  There are a lot of resources out there to help you if you choose to do it yourself or work with a mentor.

Create a Business Plan with the Help of the SBA

The Small Business Administration offers extensive guidance in this area.  Local small business development centers can help as well.  The important thing is to make sure all of the necessary information is included.  It also needs to be in the right order.

See: sba.gov/business-guide/plan-your-business/write-your-business-plan

What Information, and in What Order?

First, there is an introduction.  Then, there is a research section.  After that comes the financial information. Finally, though not required, you may have an appendix with additional information.

The introduction includes an executive summary, a description, and strategies.

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Executive Summary

The executive summary is a complete summary of the business idea.  The description goes into further detail than the summary.  It describes the business, answering questions like:

What type of business is it? What product or service will it offer?

This is where you work to get others excited about your business.  Catch their attention and make them want to keep reading.

Strategies Section

The strategies section lays out your plan for getting started.  Do you have a marketing plan? Where will you locate? How many employees will you start with? What is your ramp up plan?

Create a Business Plan: The Research Portion

After the introduction comes the research portion of the document.  This is also called the market analysis.  It has two parts: The Analysis of Audience and the Competitive Analysis.

Analysis of Audience

The analysis of audience answers the following questions:

  • What need will your business fill, and for whom?  For example, are you a childcare facility filling a need for affordable childcare for working moms?  Are you an eatery filling a need for a lunch spot for those working downtown?
  • How will your business fill the need?

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Competitive Analysis

The competitive analysis is just what it says, it analyzes the competition.  It answers the following questions.

  • Is there already a business working to fill this need?
  • Is there room for more?
  • How do you plan to compete with them?

Create a Business Plan with a Planning Section

After the research section will come the planning section.  This will include the plan for design and development and the plan for operation and management.

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Plan for Design and Development

The plan for design and development explains how the process will play out, from start to finish.  What steps are you going to take? Basically, it is a more detailed version of your strategies section.

Plan for Operation Management

The plan for operation management discusses who will own the business, and who will run it from day to day.  This could be as simple as stating that you are going to be the sole owner and operator.  Or, it could be as complicated as laying out a complete partnership plan or board of directors format.  Do you plan to run the business daily or hire a manager for the day-to-day operations?  Discuss that here.

A lot of new business owners get lost here.  How do you have financials if there is no business yet?  You lay out your funding plan in this section.  What money do you already have? Where did you get your current funds?  Did they come from angel investors, crowdfunding, personal savings, or something else altogether?

How much do you need? How will you use the funds? This section also has a complete set of financial projections.  It usually goes out for at least 5 years.  It’s best, if possible, to have an accountant put together your projections.

Create a Business Plan with an Appendix

An appendix is optional, but recommended by most professionals, including The Small Business Administration.  It can include such things as credit histories, resumes, product pictures, and letters of reference.

If applicable, licenses, permits, patents, legal documents, and other contracts should be included as well.

Anything you can include that makes it easier for the lender is a good move.  You have the space, so why not use it? More detail is nearly always going to be better than less detail.

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Presentation

The presentation is important as well.  Your business plan should be professional in both appearance and content.  If you are using your plan to apply for a loan, do not just fill out the questions on a loan application.  Take the time to put together a well written and well-designed strategy.

This is where a business plan writer can come in handy.  It is possible to do it yourself but use all available resources like The Small Business Administration and Small Business Development centers.

You need this document for more than just to get funding.  It can help you make decisions about growth.  It can also help you recognize and shore up weaknesses. This document also highlights your strengths for potential lenders, investors, and partners.

That can help you convince partners to join your business.  A well-researched business plan can help you recognize opportunities, as well, even some you may not have considered previously.  Maybe there is a market need you can fill that you didn’t even see until you did the market research for this document.

Takeaways

You need a business plan.  Lenders and potential investors want to see one.  It is also vital to communication with partners and management.

It should include all the necessary information, in the right order.  This includes an introduction with executive summary, description, and strategies sections.  Next, it should have a research section with both a market analysis and an analysis of audience.  Then, there should be financial information with current funds and budget, sources of those funds, projections, and the funds request.  Finally, you should have an appendix if applicable.

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The Trump Impeachment Evidence

He might be acquitted, but he won’t live down his disgraceful conduct.

The post The Trump Impeachment Evidence appeared first on ROI Credit Builders.

Repl.it is hiring to change how people code

Article URL: http://repl.it/careers

Comments URL: https://news.ycombinator.com/item?id=26104000

Points: 1

# Comments: 0

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Repl.it is hiring to change how people code

Article URL: http://repl.it/careers

Comments URL: https://news.ycombinator.com/item?id=26104000

Points: 1

# Comments: 0

The post Repl.it is hiring to change how people code appeared first on ROI Credit Builders.