What is the best credit card for small business owners ? well, the answer could be vary! and it will depend on many factors such as, what limit that you need, what kind of cards that you prefer, what kind of Ideal Annual percentage rate and on and on! for me personally I prefer with credit cards that have low APR or interest rates! why ? well, the only reason that I can think of! why I need credit cards is simply because I need to keep my cash flow at healthy rates! it mean I need more capital to increase more transaction and also keep my advertisement or marketing on steady pace!
Most of small business owner basically facing the same problems! i.e capital with low interest rate! the big question is, how the heck we get capital with low interest rate without headache ? most of financial institution actually offer their services to lend money for small business ! but not even 1 of them! not even a single of them will offer to noobs! 😉 it mean they will not give you a loans, if you can’t give them beta! it mean they don’t want to give you money , if you just started your own small business! 🙂
But if you already make smooth business, and your profit already stable at decent rates! believe it or not they will offer money to you without limits! 😀 sound pretty cool huh! 😉 but one problems! how to get there! how make your business profitable ? well, today I will give you a little tips how to deal with it and how to get small loans without headache!
when we want to do business we need 3 things! first is money to buy some stuff, and then sell it and make profit! secondly we need marketing budget to promote our product! because without advertisement! believe it or not you can’t run you business smoothly! 😉 and the last is we need more capital to increase profit ! in simple term business need money! but unfortunately it doesn’t mean when you have money you can make profitable business! 😀 lol! but lets forget about it a little! because our jobs as business man is to figure it out, what works and what’s not! and to make it happen at least we have to make some action! i.e spending money!
so the most important things for us to do is, how to get money to start our own business! probably the most reasonable answer that most of us can think of is by getting loans from financial institution! it could be banks, credit cards company, or maybe federal credit union!
If we go to the banks! unfortunately they won’t give you money to start business! because for sure, they don’t risk money to noobs! and if we go to the credit cards company! since their APR are quite high! I don’t think it could help to start your business smoothly! Imagine like this! you use credit cards money about $10.000 to start business! average APR that most credit cards company will offer are about 25%, so if you can’t make profit from business in 4 years your debt are about to double! i.e $20.000! so the question is, how to get loans with small interest rates, so we don’t have to worry that our debt will be double in the next 4 years ? well, the most reasonable answer actually already there! it’s near you! some financial organization that create not just to make profit and profit! i.e Federal credit union!
Most federal credit unions basically are design to help their members! their organization are not just to make big profit and charge high interest rates like other financial institution! because credit unions growth is because they have loyal and good members! they have to make sure, that their member are not there just to get some loans and then run away and default! so most of them will have high standards! it could be length of membership, High credit score, knowing you personally and etc! but credit union are just like other financial institution! they have variety of products! such auto loans, home loans, student loans, and credit cards! 😀
Good news is, most of their product always have low APR from 1% to 5%! so imagine if you can borrow money from them with interest rates as low as 5%! for sure, you don’t need to worry to much if your business doesn’t run smoothly! because we all know, not all business can be successful! because from 100 people that doing business! only under 10% that can make their business break even! and only 1% that can make decent profit from it! so yeah, doing business are quite risky! 😀 so I don’t blame bank, if you can’t get loans from them to START your first business! 😉
So If you just want to start your own business without have to worry about High interest rates, that can make your business go down! my suggestion is try to become federal credit union members! know them, build high score with them, make personal connection and etc! after 1 or 2 year doing business with them, and as time goes by, and your business doing well ask them to consider about your limit! because for small business owner make a loans with high interest rates probably its not the best idea! because its very important for small business owner to make their mind in peace and concentrate to make some improvement here and there! In a nutshell Credit cards from credit union probably are the most reasonable credit cards for small business owner!