Business Credit Cards?

After a long blogging hiatus, here is some practical advice about business credit cards. I made a post about this same topic about a year ago, but it continues to be one of the most frequent issues I deal with as a business debt consultant. It is always good to be reminded of what to do regarding business credit cards.

If a credit card is obtained using your social security number and it has your company name on it, then BOTH you and your business are responsible for the debt. In other words, the credit card company has a hand in both your pockets.

As long as payments are made in a timely manner, it will not matter, but should you miss a payment, or be late, both your personal credit report and your business credit will suffer.

Business cards should be obtained with your federal Tax ID number and only that number.

If a card you already have has your social security number, do not add your business name. When a card is personal, you have options and federal protections against debt collectors, but business cards have no options or federal protections.

As I said in a post date June 2006:
"In my experience as a small business debt turnaround specialist, credit card debt is one of the most difficult debts to resolve because nearly all small business credit card debt has been obtained using or including social security numbers. Tie it to your business and steer clear of credit cards masquerading as business cards that require your personal information. You are protecting yourself and preparing for any unforseen financial trouble by leaving a path for business debt managment professionals to settle your debt."

If you find yourself in a difficult situation trying to handle your own business debt, while turning around your business, give me a call. Financial Technologies can help you get back on your feet and give you the time you need to get out of debt and back to business. Visit here for more information.

I hope to be more frequent with my future posts!

- TheDebtDr
http://www.financialtechnologies.com

It Could Happen to Your Business!

As reported on www.smartmoney.com:

"The Small Business Administration reported that in 2005, 554,800 small businesses were forced to shut down. Whatever the cause, a downturn in the economy, a new competitor or even your own strategic mistakes 10% of the small businesses in the US shut their doors in an average year."

There is help! Although this is our story, it was written by an independent news reporter who investigated the subject. [Click here for the full story] You are not alone in your plight with debt. As we have been saying over the last few blogs, please get help as soon as you see signs of trouble. We are here if you need us for any business debt help!

- TheDebtDr
http://www.financialtechnologies.com

What Can a Business Debt Management Consultant Do To Help?

Depending on when you seek help a Business Debt Management Consultant can provide survival guidance.

If you get help early, a Consultant can review your business data in an effort to nail down the root causes of your financial problems. Through the years we have uncovered many causes including poor management, dishonest employees, profitless sales, poor records, poor collections, high overhead, over-staffing, under-staffing, well... you get the idea.

If you are typical and procrastinate, your Consultant can help settle or avoid lawsuits, negotiate judgements, settle debts and help with business debt consolidation. Consulting fees pay dividends.

This is why I recommend that you find help for you and your business at the first signs of trouble. Experienced consultants can correctly analyze your situation and develop a solution that can mean the difference between saving your business and business bankruptcy. I have seen too many businesses fail for lack of guidance. Find help here.

- TheDebtDr
http://www.financialtechnologies.com

When To Seek Help with Business Debt Problems!

Most businesses have a cycle of performance with ups and downs. Often you are distressed because sales are down but you know they will pick up next month. They don'’t! What now?

When you have to make a decision about which bills not to pay and which ones to pay or whether or not you get a pay check this week or month it'’s time to get some professional assistance.

Business debt management is key to a successful business. Unless you recognize your challenges early on, they will become problems that can control your time and business. Early professional help can be effective guiding you away from financial crisis that could lead to debt consolidation, lawsuits, foreclosures, bankruptcy and other serious legal and financial difficulties.

Big business can sell stock when they need money but small business does not have that luxury. As a small business owner you must be prepared to deal with business debt crisis on your own. Preparing for difficult times should include getting to know a Business Debt Management Consulting firm like Financial Technologies.

When you need advice, Contact Us. Financial Technologies has many years of experience in this field and many very real success stories that we can share about people like you recovering from debt, without turning to business bankruptcy. Don't let your debts get away from you. If you are in trouble, seek help.

- TheDebtDr
http://www.financialtechnologies.com

Web Marketing

Financially Troubled businesses should review their operating, product, and sales cost. When things get tough, we tend to put out fires, but not look for the cause.

When creditors are knocking at the door, knowing how you got there is the first step to fixing things. As debt consolidation and turnarouund management specialists, we find that unless we can discover the root cause, we cannot be of much help.

Many times the cost of sales is the real problem and many times Internet Marking can be the start to correcting things. Reviewing your product items online and learning what is being done in your industry is a must. Competitors with lower costs may have lower prices and are cutting you out.

When you have your industry information, you can start thinking about products to promote. Then is a good time to review your inventory to see what sells. Don't promote losers.

Finding the right webmaster and design team is important. What you should be looking for is an open mind with imagination. Same old, same old can turn out ho-hum. You need someone to pay attention to your customers needs and to work to present them a solution.

- TheDebtDr
http://www.financialtechnologies.com

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

Business Credit Cards?

Ever had questions about business credit cards? Here is the main thing you should know:

When you get a business credit card, tie it to your business and not to yourself! If the application requires a social security number, you are not applying for a true business card. It is, in fact, a personal card with additional liability to your business.

Why is this bad?

If for any reason, say a late payment or a default, the liability and bad reports going to the credit bureaus will go directly into your personal credit. report. This can cause all your card balances to experience accelerated interest rates.

The most frightening part is this account is no longer covered by consumer fair debt collection laws, allowing collectors to call and harass you night and day, including calls to your home, work, relatives, and neighbors.

How do you avoid this? Only obtain a business credit card with your Federal Tax ID number and not your Social Security number.

Should your card company offer to put your buisness on your existing personal card, don't do it!

In my experience as a small business debt turnaround specialist, credit card debt is one of the most difficult debts to resolve because nearly all small business credit card debt has been obtained using or including social security numbers. Tie it to your business and steer clear of credit cards masquerading as business cards that require your personal information. You are protecting yourself and preparing for any unforseen financial trouble by leaving a path for business debt managment professionals to settle your debt.

Good luck!

- TheDebtDr
http://www.financialtechnologies.com