credit card

Today’s rough competition and tough recession push you, a business owner, to offer as much option as possible to your clients and customers.

It is considered as a smart move, if not a must-do.

In retailing, one of the areas that you can always improve is checking out process.

Checking out key success factors may include quick service, courtesy, cross-selling, and payment options.

Of all, payment options are the most important, as transaction flexibility is a strong add-on value.

Payment options made possible by merchant services, that allow businesses to accept payment made from a credit or debit card.

Merchant services

Merchant services today not only offer credit or debit card on-site transaction processing, but also other broad range of financial services for business, such as:

• Wireless merchant account service, to do credit card processing anywhere, anytime.
• Check conversion service, to convert checks into cash.
• ECommerce transaction handling, to accept and manage payment made through the Internet.
• Gift and loyalty card programs, to accept member management, along with the on-offer promo programs.

How to choose the right merchant services

To allow you the ease of payment processing management, I recommend you to partner with one merchant service provider that offer a broad range of financial services, such as Flagship Merchant Services, that is not only offer you payment options, but also other services, such as free set-up and credit card machine reprogramming.

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What is the relation between The Fed and balance transfer?

Referring to the Federal Reserve website about credit card disclosures, I think that The Fed might already predict today’s recession on May 23, 2007 by ensuring that consumers get important information about credit card terms in ways they can understand, in formats they can use, and at times when it is most helpful.

The proposal allows you and I to do balance transfer - that is, transferring debt from your previously owned credit card to a new card that offer a lower interest rate, as the credit card information disclosures enable us to do just that.

That is definitely a blessing in disguise for credit card consumers, as well as for those who use credit cards to do business, especially in today’s recession.

Balance transfer saves the day

Along with the ever-presence of the Internet, you can easily do 0 balance transfer online on many credit card websites.

As soon as you spot a credit card issuer that offer a lower interest rate, you can easily apply online for that card and benefit from it.

With some issuers offer 0% APR balance transfer, you can find your way out of the credit crunch easier and faster.

The Fed’s role to help businesses: The butterfly effect

The Fed is the one to look up to if you own a business of any size. I don’t know about you, but as a non-finance expert, I take every word from what The Chairman of The Fed said as a fact that acts like a butterfly effect.

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There are certain perks for being a discipline and well-organised business owner. One of the perks is on credit cards financing for business purposes.

As you might already aware, credit cards can make or break your business, as well as your personal finance.

Using your credit cards under strict management will give you the opportunity of non-interest bearing loan.

Credit card financing - free source of business funding

Credit cards ‘offer’ you a 30-day period loan - meaning, if you pay your credit card bill on time, your ‘borrowed’ money do not bear any interest. This means, you have to pay in full for your credit card bill, and avoid paying minimal payment at all cost.

What kind of credit cards offer is for you?

0 APR credit card is the common offer by credit card issuers that you should look into when applying for an account - you pay no interest, fees, and other related credit card charges for a certain period of time.

The purpose of credit card issuers offering 0 APR program, to me, is to encourage consumers to use credit card balance regularly, with the hope that consumers will keep ‘borrowing’ when the offer expires.

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I never been into politics, not even on today’s US election.

However, I interested in learning how the US election will actually help US small businesses, as well as global small businesses, in receiving perks that will be beneficial for all.

Countdown to US November election has never been more exciting today, especially in both consumer and business credit cards industry.

A nation of which people regarded by many as big spenders, US Credit Debt is overwhelming and disrupting lives. Many of its people are in deep credit debt due to mismanaged personal finance, as well as non-conducive law and regulation.

The Credit Cardholders’ Bill of Rights is highly advocated and anticipated today, due to the political purposes attached to it by the US presidential candidates.

Once provisions of Credit Cardholders’ Bill of Rights come into effect, you can expect fairer credit card regulations for both consumer and business.

Perks for small business owner

What the proposed provisions of Credit Cardholders’ Bill of Rights means to small business owner?

Once the provisions take effect, small business owners will enjoy no interest rates increase while they pay their bills regularly on time. Moreover, there will be no new interest rates can be applied to the balances accumulated under the previously low interest rate.

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Although financing your business with credit cards is a two-edged sword - it may sounds like a good idea or a risky business financing - many people turn to credit cards to finance their business.

One major advantage why people use credit cards financing is due to the ‘right’ combination of moderately high interest rate and the amount of credit card limit with no-collateral attached.

Why people use credit cards to fund their business

No matter how risky credit cards-based business is, there are actually success stories of people using credit cards as their leverage.

Why people would use credit cards to fund the business? Most of the cases, they avoid bank loans, because they need collaterals and strict (and complex) credit application approvals.

Why people would not turn to their friend and family for borrowing money? Many says that borrowing from friends and family is more risky than using a credit cards, as it involves risking the relationship.

Real life case studies

My fellow businessman once told me that his friend start a business and seek for partnership to join the business, with a requirement that the partner should have credit cards - the higher limit, the better. Soon he formed an LLC, with 6 or 7 partners and a startup ‘investment’ value of $75,000 in credit cards fund. The last time I heard about him, his small business is doing great.

One more case - I have a relative who finance some of his businesses (Yes - he has multiple small businesses) with credit cards. Although his business involves high volume transactions with low profit margins, he insisted to use credit cards, mainly because of the point rewards - he said that, the reward itself is a ‘nice’ addition to the business’ profit.

The last case is very interesting to me - let’s dig deeper on my relative business plan.

The use of reward credit cards as your business cash flow account

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