Business

Reasons Why Small Business Owners Choose Credit Cards to Get Started

Credit cards are easily the most popular form of business credit available for an entrepreneur trying to start their small business. To some, using credit cards to launch a business venture sounds like a start in the completely wrong direction.However, among the horror stories, there are also many success stories of entrepreneurs getting their business off the ground using credit cards for financing.

Millennials are especially in favor of using credit cards to start their business. A recent survey by Bank of America, 37 percent of business owners between the age of 21 and 36 use credit cards for funding. Below are just a few of the reasons why they are increasingly the financing option of choice:

Growing Business

For the business growing rapidly with a limited budget, credit cards are sometimes used as a quick solution. At first, the credit card may have a low limit (e.g. $4,000). Over time, and if you pay off expenses quickly, the card issuer may be willing to raise that credit limit (e.g. $75,000) and provide more flexibility to invest back into your business.

No Interest, No Late Payments

If used correctly, a credit card can help a small business cover growth and expansion costs while also avoiding interest. The key is to never miss a payment (it makes the APR go up), and stay aware of when the 0% APR period will end. Some entrepreneurs have charged – and paid off – hundreds of thousands of business costs without triggering APR and paying very little interest.

Cash-Back Rewards

Other entrepreneurs choose credit cards because of the cash-back rewards. At the end of the month when revenue comes in, they payoff the balance. Between the lack of interest payments for not carrying a balance and earning the cash-back reward, entrepreneurs say it feels like getting a discount on things they buy for their business.

Above all, those who have chosen credit cards for financing advice paying the balance off and to not get in over your head. Even with the above advantages, it’s true credit cards are not the ideal option for every business startup. Others choose the traditional bank loan (even though they are very difficult to get), accounts receivable factoring, crowdfunding or a merchant cash advance, to name a few. Every entrepreneur’s situation will be different.

For example, a bad credit merchant account with an alternative lender like First American Merchant allows business owners to secure financing regardless of bad credit history and (limited) time in business. The application can be completed in a matter of minutes, and funding is received in as little as 24 hours. The key is to find the funding that best suits your business’ needs.

Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best bad credit merchant account company, serving both traditional and high-risk Businesses.
 

Entrepreneurship Overseas by Sebastian Guthery

An entrepreneur is someone who is effectively able to make cash through service. In Africa, there are a great deal of opportunities for entrepreneurs to create and earn money from business concepts. In the looking of great opportunities, businessmen can make faults — errors formed by other individuals prior to them.

 

Today, we share a lot of guidance to assist you evade the repeating of the very same mistakes made by others and assist you grow company.

 

  1. Choose the something you are passionate about.

 

In some cases intuitively, you think the larger the company, the better. By going after a bigger dream, you can rapidly end up being impatient and start losing focus on your preliminary objectives. Instead, focus on obtainable goals that have lower threat and fewer requirements to enter the market. As the analogy goes, you can reap the exact same rewards by starting off small and simple.

 

  1. Be a Business Market Hard Worker

 

As an entrepreneur, you ought to constantly have a sharp eye and listening to be able to make the best choices for your organisation. Abraham Lincoln as soon as stated that “good ideas come to those who wait, but only things left by those who hustle.” An excellent business owner leaps on every excellent chance that emerges.

 

  1. Do NOT pawn

 

An effective company owner understands that being in debt can cause major issues to running a service. When making loan ends up being an objective to repay debts, you may be losing the point. Ambitious entrepreneurs can easily get caught up in a habit of loaning and paying back. Always look for suitable recommendations to prevent your organisation being trapped in financial obligation by borrowing more than you can pay back.

 

  1. Be daring and perform

 

Successful business owners can tell you that fear is a leading consider organisation failures. As an African business owner, you are confronted with a great deal of unpredictability. In order to prosper, you must be smartly bold and execute your business plans in order to progress, due to the fact that fortune prefers the brave.

 

Learn more: https://www.crunchbase.com/person/sebastian-guthery

Nancy and Geoff Thompson: Wills, Trusts & More for Special-Needs Children

Outlining for the what’s to come when the guardian is no longer around to make choices is an important factor of the special-needs moms and dads’ duty; there are contractual, financial, and medical elements to keep in mind throughout the initial preparation procedure. In this post, we’ll rummage through the legal planning portion in more information, particularly about wills and legal guardians for the children when the parents are not alive.

 

Recently, we discussed the preliminary planning phases for caretakers of special needs individuals.

 

Legal Preparation for a Kid with Unique Needs

 

Throughout the planning process to safeguard the monetary assistance and safety of special-needs kids after their parents are not there to make decisions, legal concerns form some of the most fundamental parts. In legal preparation, there are 4 significant legal issues to consider. These are:

 

Unique Needs Trusts– this is a special kind of legal arrangement where possessions set aside to care for special-needs kids are in a trust. A trust is a legal entity, practically like a corporation, that gets and manages the monetary possessions on behalf of a person. Trusts offer crucial defenses that wills or other final-wishes arrangements simply can not offer.

 

Guardians– guardians are those designated by special-needs child’s parents to make choices on behalf of the parents if they must pass away. Guardians are in some cases described as conservators. A guardian is not necessarily a recipient or trustee of monetary possessions, although some guardians can be selected to both functions.

 

Letters of Intent– this is a crucial companion document to a will or an unique needs trust. The letter of intent, often described as a letter of guideline, offers standards for trustees or beneficiaries. In other words, it define the dreams of the departed, and in this case, supplies a plan for looking after the special-needs child or kids.

 

Wills– a will is a legal document that states how an individual wants his or her assets dispersed after death. A will is prepared by a lawyer and after the person passes away, it goes through a lengthy process called probate. Once the probate court has actually completed its examination of the file and its directions, assets can be granted to beneficiaries.

 

Special requirements trusts and letters of intent induce important legal roles, as they safeguard the guardians’ ability to make essential choices, even after they have passed away.

 

It is these last two detriments that are of main issue, as it is possible that when special-needs kids maturate, the parents might lose some or all authority to make decisions on their behalf.

Read more about Geoff and Nancy Thompson.

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