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Establish Creative Credit Lines for Your Startup

January 24th, 2011 | No Comments | Posted in Business

When you first start a business, your main objective will be to find lines of credit to help fund your startup. Getting a merchant loan may be possible later, once you have some proven credit card receivables, but until then you may have to get creative to establish lines of credit to help to get your feet off the ground.

Credit Cards and Cash Advances

Many new startups have difficulty getting small business loans, but find it relatively easy to establish a business credit card account. While rates are variable on credit cards and can be as high as 30 percent on cash advances, they do offer access to cash when nothing else will do. If you pay off your balance in full, you’ll get access to credit and you won’t pay as much finance charges. It’s also an excellent way to build your business credit history when you are first starting out.

Negotiate Credit Lines with Suppliers

Depending on the type of business startup you’ve chosen to establish, you may have to develop relationships with different suppliers or vendors. Once you’ve done business with them and they start to trust you, you can ask for an extension of credit. Getting even a 30-, 60- or 90-day credit extension might be all you need to turnaround the raw materials and sell them as finished products in the open market.

Look for Trade Opportunities

Another way you can establish a virtual line of credit for future use is to trade your services for other services your business requires to operate. For instance, if you find that many of your jobs are being done in a different state, you might see if you could establish a trade relationship with a rental truck or motel business. By offering your services in exchange for future credit you can reduce the cost of operating your business and expand its reach.

Be a Discount Blood Hound

January 24th, 2011 | No Comments | Posted in Financial

Resolve never to pay full retail price again, and you can easily find some spare cash in your budget to fund an emergency account. Even when looking for different type of loans, consider how to get a discount rate or an application fee waived. When you shop the grocery store use your rewards card to get instant deals at the checkout. Use a warehouse club membership to get discounted brand name clothes and discounted gasoline. Always be on the lookout for savings and take that change that you save on checkout and put it towards a rainy day fund.

Clothing

Discount stores for clothing are numerous, but don’t be afraid to step into the regular retail stores are having sales. You can get great deals from clearance racks when you least expect it. On the other end of the spectrum are thrift stores. Prices for men and women’s clothing are minimal when compared to retail stores, but they are gently used goods, not brand new.

Food

If you have a choice of several grocery stores nearby, check the circulars online to see where you can get the better deals. Certain holidays often create a large demand and discounted prices and it can be a good time to stock up. Use your reward card every time you check for the best deals. Visit warehouse clubs if you want to buy in bulk and get a discount that way, too. Don’t forget the local farmer’s markets where fresh produce can seem discounted when compared to grocery prices.

Other Consumer Goods

Make plans to take advantage of tax holidays or rebate offers. Use a credit card with a rewards system to get more perks or cash back at the end of the year. Ask for a discount if you think you can get the item for less elsewhere. Often, a retailer will lower the price just to make the sale.