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Trends in Financing Your Business In 2010
Business trends change over the years and for people who run businesses, being aware of those changes is an important factor to survive the market. In the following paragraphs, we will take a look at the developments in financing a business for the year 2010.
Angel Investment
Angel investors can be individuals or groups in search for promising business ventures. Angel Investors started to become a favorite financing option in the late 90s and since that time, has went on to be one of the most highly regarded methods of business financing, especially with small enterprises.
Equipment lease financing
Equipment leasing has become the most recommended methods for business financing not just for small enterprises but for large and established companies as well. Through equipment leasing, a small working capital doesn’t need to be a major barrier in delivering those brilliant business ideas to reality. Business equipment lease is paid in installment so the business owner gets the chance to acquire all equipment needed for the operations without a great deal of upfront cost.
Supplier Credit
A number of wholesale vendors provide credit lines to their small business customers particularly if they can present an outstanding credit history. Be sure to check out prospective vendors who can provide you with your needed supplies and if you can be extended a credit line.
SBA Loan Programs
For business owners who are having trouble acquiring a business loan from banks or commercial lending companies, they can get support from the Small Business Administration (SBA). By being guaranteed by the SBA, it will be easier to get approved for small business financing. Nevertheless, remember that the SBA has its own requirements in approving small business loan applications. Check from the SBAs website for the prerequisites in applying for a small business loan.
Business Credit Cards
At present, a growing number of business owners are realizing the benefits of using small business credit cards. As opposed to using their personal credit cards for business expenses, entrepreneurs are making use of business credit cards to separate their personal and business finances. Business credit cards are also perfect tools in building business credit history. Over time, maintaining an impressive business credit rating will be a major advantage in the future development of a business and one of the simplest strategies to build credit is by using a credit card for business.
Bank Business Loans
Despite the emergence of fast loans, a lot of small business enterprisers still favor the traditional approach to business financing. The reason for this is that banking institutions generally provide a bigger amount of funding and when matched up against other types of loans, a bank loan is still more reliable. For business owners who are willing to use their homes as collateral, a secured small business loan gives them the opportunity to obtain the financial assistance they need for starting a business. Secured business loans are known to have lower interest rates and longer repayment period compared to unsecured business loans.
The Lowdown on the Toys R Us Credit Card
Designed for users equipped with a good credit rating, the Toys R Us Visa Platinum Card offers cardholders great rebates. With a 4% rebate for Toys R Us and Babies “R” Us store purchases plus no annual fee, this card is ideal for parents intending to enjoy great savings, while still getting that toy which their children have been asking for.
Purchases made with the Toys R Us Visa Platinum Card at www.toysrus.com, www.babiesrus.com or anywhere Visa credit cards are accepted receive a 1% rebate for each transaction. When the rebate values reach $10, the cardholder will then be sent certificates that can be used to redeem for products at Toys “R” Us® and Babies “R” Us stores, as well as through their websites. The certificates will expire after one year but the amount of rebates that can be earned is limitless.
Now we get to the dirt. For a Platinum card, the Toys R Us Credit Card doesnt provide any exclusive perks on top of the usual benefits which are also by other cards. The APR is also relatively higher for less qualifying applicants, with the 0% APR intro period dependent on your credit history. The real stinker is the way finance charges are determined, which is the “Two Cycles Average Daily Balance” method which results in higher interest payable than the usual Average Daily Balance configuration.
Nevertheless, this should not be a hindrance to you if you have good payment habits, a great credit score and continue to be financially responsible. With this, the interest tabulation will have minimal effects on your costs of using the Toys R Us Credit Card. Otherwise, it may be better for you to get alternate cards which utilize a better way of tabulating interests.
Overall, the Toys R Us Credit Card would be suitable for you if you plan to make a lot of purchases at Toys “R” Us® and Babies “R” Us® stores in addition to taking advantage of that 4% rebate. Otherwise there may be better Platinum Cards out there for you.