Business Credit

Vendors more and more are demanding a credit card for corporate purchases vs. an open account.

When selecting a vendor, look for and support those who ship open account with 30 day or more terms. If you are forced to use a credit card to purchase, demand a 2%-5% discount for cash.

(For help with choosing a business credit card, read here)

Don't use a credit card if your business does not have enough cash on hand to pay the charges monthly and be sure to use a card that will benefit you with mileage or cashback rewards. Credit card interest is a rip off!

Consider also using a debit card and buy only what you need now! Negotiate stock up orders on open credit terms with dating if possible (i.e. 90 days).

In the the business debt relief field, we see businesses both succeed and fail. Credit card debt is the most common cause of small business failure we see today. If you want a successful business, do not carry a balance on interest charging credit cards. When forced to use a credit card for inventory, demand a cash discount.

A growing business should search out a smaller, locally owned financial institution, bank, or credit union that is interested in working with small business. Once you find such an organization, support them and develop a relationship. Small, short term loans with reasonable interest and payments for special purchases of inventory are preferable to credit cards.

Remember, if you find yourself in a financial situation that seems hopeless, get in touch with us at Financial Technologies and get the help you need.

- TheDebtDr
http://www.financialtechnologies.com