In Business Since 2001 We accept Paypal
Home Article Directory
More from Bill Platt
"Bill Platt for Book Authors" Youtube Channel
Training for Book Authors
Other Resources for Book Authors & Publishers
FictionPlots.com (350+ Plots & counting)
Please Support Our Advertisers

 
D9 Hosting


Small Business Owners Who Manage Cash Flow Well Profit Tremendously

Copyright (c) 2007-2021

Starting a business is always a tremendous undertaking. It is the most stressful undertaking a person could ever attempt to do. Most new business owners fail to understand that running a business is a complex operation, which will require the business owner/manager to pull many hat tricks to stay afloat.

As the stress of the business grows, many new small business owners find themselves completely overwhelmed by all of the work required to keep their new business afloat.

Much of the strain of establishing and running a business is centered on successfully juggling the finances. When working as the head of a corporation or as a sole proprietor, every decision made will affect the future of the business. Having a means of relief in place in the event that a wrong decision is made can often mean the difference between success and failure of the business. When a bad financial decision creates a situation where payroll cannot be met on time, a business can quickly find itself without staff to continue operations.

Business Credit Cards For New Businesses

In many cases, start-up companies seek out a loan at the beginning of their business. For business owners who are not comfortable taking out a large loan, there are other options that can be considered as an alternative.

A credit card designed specifically for business is an option many companies will choose to pursue. This is just like a traditional credit card, but it also provides a variety of business directed incentives.

Credit card companies generally offer low interest rates to attract new business enterprises. While the credit history of the owner of a small business is going to be considered in factoring how much credit a company can receive, other factors are considered to carry greater significance.

The business plan and financial projections of a new company are going to be the most important categories available for banks to examine. Lenders and credit givers are fundamentally interested in learning about your projected financial expectations.

For companies that have been around for awhile, an in-depth look at its financial history and business projections are going to be the most vital pieces of information a credit card company will want to know.

A business credit card provider is going to be most concerned with the stability of the company. Some banks are so concerned about the stability of a business that they will not risk the investment of offering any type of credit to a start-up company, even if that company has a checking account at their bank, until the company has maintained their business checking account for at least one year.

This is by no means meant to discourage a business owner from pursuing business financing. Instead, it is simply an observation of the difficulties that many business owners face when trying to establish business credit. Each bank has their own policies on business credit cards, and some banks will prefer to be more cautious than other banks.

The Pitfalls and Advantages of Business Credit Cards

As with any credit card, the most common pitfall of owning a credit card is the potential to overspend. It is always best to limit the amount of money that is charged on a credit card, whether in personal finances or business finances. Business start-up costs can be astronomical. There are also times when a company needs a few extra dollars to keep their utilities from being disconnected. If someone is not careful, they can easily charge their way into a deep pit of debt that could ultimately destroy their business.

The truth is that cash flow is always a problem for new businesses. Small business credit cards can make it possible for a business owner to pay all of their bills on time. The danger, of using credit cards to maintain a business' cash flow, is when the owner is in a state of denial about the true health of his or her company. Unfortunately, some business owners become dependant on their line of credit and use it to prop up a business cycle that cannot sustain itself, ultimately leading to financial disaster.

On the other hand, acquiring a business credit card could also be one of the best decisions an owner could make towards the long-term stability of his or her business. When a business owner has access to additional funds to float his or her business during a short window of cash flow problems, that extra money could be just enough to keep the business alive to continue operations. An example of such a situation could be when the company's bank intends to hold a deposited check until after the next payroll date. It is one thing for an owner to decide they can wait a few more days to be paid, but it is quite another thing altogether to ask a company's employees to wait five days to be paid their wages.

Being able to access the financial means to keep a business steady and on sure footing can provide a terrific sense of security to the business owner.

The time when a credit card becomes especially handy to the business owner is when tax time comes; a business credit card can be a true asset. No one is better at finding accounting flaws than our federal government, and almost every new business is going to be audited in their first year.

If a company's transactions are all done with a business credit card, then the company will have a permanent record of all of their business transactions. Having documentation of all of your expenses is vital, when dealing with the IRS.

The most important thing that a small business credit card can do is to provide you with the means to establish a reputable credit history with banks and lending institutions, so the business can gain access to higher credit lines than what the typical start-up company is afforded.

Inspiring Examples

One of the most successful cases of a small business succeeding by the use of a business credit card can be found with Google. Some would argue that Google is the most successful search engine on the Internet. It has become such a phenomenon that the company name has morphed in to a verb for all online searches.

It is amazing to think that it all began in a dorm room. Its next home was in a garage. Eventually the founders of Google, Brin and Page, realized they needed larger equipment. They bought all of their new equipment on credit cards, because banks were not interested in lending money to a small dot-com company.

Over 380 million people in over 35 different languages regularly use Google to enhance their online experience. All of this success was made possible by the start-up funds provided to the Google founders by credit cards.

In Conclusion

Business credit cards can mean salvation for a fledgling company. Having the resources to maintain your companies financial stability can make any business owner more confident with in their decision.

A good line of credit for your business can also lead to countless openings for future growth. Establishing a strong and steady financial history can be the perfect asset in finding interested investors and development opportunities, when it is time to reach out for a bigger line of credit.

For those small business owners who know how to utilize the credit system to grow their business, the future may be greatly enhanced. For those business owners who start their journey with credit cards, the climb to greater credit availability is made that much easier.


About The Author: Shop Amazon - Top Gift Ideas
Braxton Heitz writes about family finances and the challenges of finding a job in a rough economy. More of his articles can be found at: http://ReadMoor.com/

VOTE ON THIS ARTICLE
Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article

Tell our authors what you think about their article.



Top-Level Category: Business Offline Articles

10 Most Recent Articles Written by Braxton Heitz

Credit Card Companies Reward Consumers Who Shop Around
Written by: Braxton Heitz | Distributed: 2012-11-20 | Word Count: 1159 | Page Views: 6101 | Votes: 15 | Rating: 1.80
With Ronald Reagan came mass deregulation in many industries. One of the industries that benefited from deregulation was the financial industry. As a result, hundreds of new financial companies were introduced to the American consumer during the 1980's. With the sudden explosion of new competitors in this industry, credit card companies began to struggle with how to retain existing customers and to recruit new customers.

What My Mother Taught Me About Credit Cards And Family Finances
Written by: Braxton Heitz | Distributed: 2012-11-12 | Word Count: 1285 | Page Views: 6016 | Votes: 25 | Rating: 2.36
My mother is an amazing woman. She made some of the hardest jobs imaginable look easy. No matter how hard her day was, she always had a smile and perfect hair.

Student Credit Cards Can Help Lay The Foundation For Prosperous Adult Living
Written by: Braxton Heitz | Distributed: 2009-11-24 | Word Count: 948 | Page Views: 4316 | Votes: 13 | Rating: 2.46
Credit is one of the most fundamental aspects of the financial structure we have built our society. In fact, a great credit score can be one of the most valuable assets an individual will ever have in his or her life.

How The Internet Has Changed The World...
Written by: Braxton Heitz | Distributed: 2009-11-10 | Word Count: 1379 | Page Views: 8133 | Votes: 17 | Rating: 2.29
As most of us sit down at our computers each day, we might realize that we have begun to take this Information Age for granted. What would we do if we did not have 24/7 Internet connections to keep us connected to the world?

All of Author's Articles on this site:

Most Recent "Business Offline" Articles

How To Build a Strong and Powerful Business During a Recession
Written by: Trey McMartin | Distributed: 2011-11-10 | Word Count: 987 | Page Views: 5300 | Votes: 6 | Rating: 0.83
During a recession, most business owners pull the reins on advertising budgets, fearful of what tomorrow might bring... Those who remain fearful have forgotten what made them the success they are today... They have forgotten that they have a God-given talent to overcome the incredible obstacles in their paths.

SEO Lessons from Local Businesses
Written by: Trey McMartin | Distributed: 2011-11-09 | Word Count: 945 | Page Views: 5412 | Votes: 5 | Rating: 0.40
More than once in the six years that I have been providing SEO services for websites, I have had the opportunity to discuss with individual business owners their search engine optimization needs. Now and again, I run across an individual business owner who is quick to say that SEO is absolutely worthless. When confronted with such an absolute statement, I like to press for details. It has been my experience that people who speak in negative absolutes will have a horror story to share.

Where Will FDA Target Next? What IVD Manufacturers Should Know Before Their Next FDA Audit
Written by: Norm Howe | Distributed: 2011-09-12 | Word Count: 706 | Page Views: 537
Medical device manufacturers are always interested in knowing what FDA's next area of focus will be. Well, if you're an In Vitro Diagnostic manufacturer you might review your measurement systems.

Online Fax - 10 Reasons To Get An Online Fax Service
Written by: Titus Hoskins | Distributed: 2011-09-12 | Word Count: 560 | Page Views: 542
Online faxing is the new more modern way to fax. If you or your company is not using an online fax service, here are 10 good reasons why you should get it.

Best Effort Essential for the Job Interview
Written by: Barbara Wulf MS, ACC, CPCC | Distributed: 2011-07-30 | Word Count: 676 | Page Views: 632
Interviewing will determine if you are the right person for the job. These tips will help you make the job interview a success.

Go Green With Your Career Search
Written by: Barbara Wulf MS, ACC, CPCC | Distributed: 2011-07-28 | Word Count: 636 | Page Views: 4121 | Votes: 4 | Rating: 0.50
Many of the qualities of green living, like recycling and sustainability, can apply to a career search, even if the career is not directly associated with green industries.

ReCareer in the Second-half of Life
Written by: Barbara Wulf MS, ACC, CPCC | Distributed: 2011-07-26 | Word Count: 525 | Page Views: 4204 | Votes: 5 | Rating: 1.20
Many of us worked the first half of our life to "fit" the job description. ReCareering is about finding the right fit, being selective, being creative, being fulfilled and being intentional about how you spend your time.

Up in the Air
Written by: Barbara Wulf MS, ACC, CPCC | Distributed: 2011-07-24 | Word Count: 678 | Page Views: 598
When looking for work or changing careers, go beyond researching on the internet and reading articles. Find out how you can learn from the art of listening and having a conversation.

Salon and Spa Owners: Which Monk Are You?
Written by: Dan Lok | Distributed: 2011-07-05 | Word Count: 477 | Page Views: 4888 | Votes: 7 | Rating: 1.00
Too many salon and spa owners are carrying around a lot hurts, regrets, guilt, past failures and fears about the future. But no one is forcing you to carry these emotional rocks, so put that sack down!

The Single Most Profitable Day You Spend on Your Spa or Salon!
Written by: Dan Lok | Distributed: 2011-06-30 | Word Count: 470 | Page Views: 5220 | Votes: 5 | Rating: 0.20
Salon and spa owners need to combine their marketing plan with marketing systems. A marketing calendar plans out strategies for a year, and is instrumental to the success of your spa or salon.

Most Viewed "Business Offline" Articles

How To Write A 300 Page Book In Four Months
Written by: Mark Silver | Distributed: 2008-07-15 | Word Count: 821 | Page Views: 39400 | Votes: 8 | Rating: 1.38
There's a lot of hoopla about becoming an author of your very own business book. The promise of fame and fortune is very alluring. Yet your book remains perpetually 'about to be' written. Meanwhile your business has ground to a halt. Hmmm... might there be a better way to get a book written?

The Best Marketing Book I've Ever Read (You'll Be Surprised)
Written by: Judy Murdoch | Distributed: 2007-05-09 | Word Count: 1522 | Page Views: 36446 | Votes: 17 | Rating: 3.18
From time to time someone asks me to recommend marketing books. Here's one of my favorite marketing books that always surprises people. Curious? Read on.

The Bizarre History Of The HOLLYWOOD Sign
Written by: Morris Timlen | Distributed: 2008-11-05 | Word Count: 1211 | Page Views: 33977 | Votes: 30 | Rating: 2.70
The most famous sign in the history of mankind is the one that graces the side of the hill above Hollywood, California. As famous a landmark as the Christ the Redeemer statue in Rio De Janeiro, the Eiffel Tower in Paris France, the Great Pyramid of Giza in Egypt, The Church of the Savior on Blood in Saint Petersburg Russia, and the Statue Of Liberty in New York City, the Hollywood sign is known around the world as the symbol of the American movie industry.

What Does It Take To Be A Successful Salesman?
Written by: Casey Moher | Distributed: 2008-08-05 | Word Count: 930 | Page Views: 26565 | Votes: 84 | Rating: 3.17
In the course of my average workweek, I meet people who tell me that they have no sales experience, and very literally, many will tell me that they could not sell if their lives depended on it. Do you fit into this mold? Do you seriously believe that you can sell me on the idea that you cannot sell things?

The Future of the Office Photocopier Industry
Written by: Jennifer Robinson | Distributed: 2010-07-29 | Word Count: 635 | Page Views: 15039 | Votes: 39 | Rating: 2.00
Since Xerox first invented and sold the first commercial photocopy machine companies and organisations have paid for use of the machine on a cost per copy basis. This has traditionally included full maintainance and toner supplied under a service agreement. In-fact the office photocopier is unique in the fact its one of the only pieces of equipment that comes without a warranty from new. But photocopier expert Online Connect UK claim all that is about to change.

Never Write A 'Thank You' Letter Again
Written by: Perry Maisin | Distributed: 2008-08-12 | Word Count: 971 | Page Views: 14182 | Votes: 22 | Rating: 2.09
When I was in graduate school, I had a friend who interviewed at fortune 500 companies and succeeded at landing a great job. One day, I saw him sitting in the student union with a stack of cards. The cards said 'thank you'. He opened each card and signed his name. The inside of the card was blank. I asked him what he was doing and he told me that it was important to send a 'thank you' to every person you interviewed with. He believed that that was the difference between getting the job and being passed over.

Selecting Between a 401(k) And 403(b) For a Nonprofit
Written by: Daniel Lamaute | Distributed: 2007-10-11 | Word Count: 333 | Page Views: 13789 | Votes: 22 | Rating: 2.27
Newly released IRS regulations impose several new requirements and fiduciary responsibilities on employers with 403(b) plans. While the regulations generally don't take effect until January 1, 2009, there are some provisions that apply sooner.

Conducting Effective Career Aspiration Discussions with Employees
Written by: Andria L. Corso | Distributed: 2010-03-10 | Word Count: 690 | Page Views: 12661 | Votes: 12 | Rating: 1.33
Enhance your talent management and development programs through conducting career aspiration discussions with your employees. Find out where they want to grow their career to determine if it matches your business needs. This will enable you to differentiate your employee development to grow the future leaders of your company.

Top Ten Personal Habits
Written by: Laurel Vespi | Distributed: 2009-09-08 | Word Count: 427 | Page Views: 12388 | Votes: 12 | Rating: 2.08
Successful people have a regular routine of daily or weekly habits that reinforce the things that are most important to them. By practicing a set of personal success habits, they maintain a positive outlook, keep focused on their priorities, have more energy, and a greater sense of satisfaction with life.

Pitch A No-Hitter With Baseball-Themed Flower Gifts
Written by: Wesley Berry, AAF | Distributed: 2007-12-25 | Word Count: 413 | Page Views: 10999 | Votes: 21 | Rating: 1.52
Want to send a gift to the baseball fan in your life that's sure to knock one out of the park? Send flowers with a baseball theme! Everyone loves flowers and when you personalize them to include the recipient's favorite hobbies, like baseball, they're sure to make an even greater impression.

Highest Ranked "Business Offline" Articles

Equal Opportunity Pizza Ordering
Written by: Rudy Vener | Distributed: 2007-10-19 | Word Count: 629 | Page Views: 4681 | Votes: 10 | Rating: 3.60
With online ordering, your menu and restaurant suddenly become accessible to both the deaf and blind customers in your community.

Lone Wolf --- Lead Wolf: The Evolution of Leadership
Written by: Rick Johnson | Distributed: 2006-07-20 | Word Count: 1826 | Page Views: 3767 | Votes: 19 | Rating: 3.47
Family owned organizations, both small and large, with succession issues, family preparation and second and third generation leadership issues have been subjected to the evolution of leadership. These organizations are often founded by an aggressive, highly talented entrepreneur. Many of the principles of leadership that helped build the success that the organization enjoyed in the past is not the type of leadership that will maintain that success through generations of ownership.

Why 'Closing' Is Not The Most Important Part Of Making A Sale
Written by: Scott Bywater | Distributed: 2006-08-29 | Word Count: 553 | Page Views: 5325 | Votes: 25 | Rating: 3.44
If you ever thought that 'closing' was the single most important key to sales success, then pay close attention, because what I'm about to share may surprise you. Let me explain:

What Makes You So Great?
Written by: Judy Murdoch | Distributed: 2006-10-04 | Word Count: 640 | Page Views: 3224 | Votes: 16 | Rating: 3.38
The other day I was discussing marketing options with a client and she said something that shocked me. I was shocked because this client founded and runs an extremely successful consulting practice and works with an elite roster of Fortune 100 companies.

Get the Balance Right
Written by: Rich Thawley | Distributed: 2009-01-28 | Word Count: 638 | Page Views: 3283 | Votes: 15 | Rating: 3.33
Do you build your business around your family or your family around your business? The choice is yours.

You Can Turn Complaints into Cash!
Written by: Judy Murdoch | Distributed: 2006-08-08 | Word Count: 795 | Page Views: 5721 | Votes: 26 | Rating: 3.31
Most of us don't like listening to complaints. We can't imagine the value in listening to someone rant and rage about something they're dissatisfied with. But here 's a secret: There's gold in those complaints—-if—-you know what to listen for.

Delegate Or Die: 6 Steps For Business Growth
Written by: Rick Sloboda | Distributed: 2007-05-08 | Word Count: 366 | Page Views: 3032 | Votes: 24 | Rating: 3.29
To achieve business growth, you need to focus on your strengths and hire others to take care of the rest. Unfortunately, entrepreneurs often fail to employ this fundamental business growth strategy. Here are six steps to help you delegate successfully.

Whose Restaurant Can You Find Online?
Written by: Rudy Vener | Distributed: 2007-07-09 | Word Count: 640 | Page Views: 4314 | Votes: 7 | Rating: 3.29
What is so significant about Pizza Hut's latest TV commercial?

Why Businesses Need Receivable Factoring In Cash Flow Management
Written by: Toby Seibert | Distributed: 2007-08-08 | Word Count: 866 | Page Views: 5716 | Votes: 7 | Rating: 3.29
In today's business environment, many businesses need to fine-tune the process of getting paid on invoices, in order to improve their cash on hand. Improving cash flow can be an ongoing challenge for businesses of all sizes, and it is an issue that must be addressed to ensure the long-term viability of the business.

Boost Retention And Referrals In Your Insurance Agency
Written by: Stephanie Cunningham | Distributed: 2007-10-23 | Word Count: 707 | Page Views: 1977 | Votes: 7 | Rating: 3.29
If you have ever stayed at a nice hotel, then you have probably seen the hotel's Concierge. The role of the Concierge is to assist guests with information and service to enhance their stay. What would happen if you took the idea of the Concierge and applied it to the way you service your agency clients?











Download an eBook today
 
Directory Navigation
Locate By Category:

ALL Categories
Arts & Crafts
Arts & Entertainment
Automotive
Business - Offline
Business - Online
Career
Computers
Education
Family
Finance
Food & Drink
Health & Wellness
Home & Garden
Humor
Internet
Nature & Pets
Real Estate
Religion
Self Improvement
Shopping
Society
Sports & Recreation
Technology
Travel & Leisure
Uncategorized
World Events
Writing & Speaking

Change Number of Results:
50 - 100 - 200 - 500
Article Reprint Rights
Creative Commons License

This work is
licensed under a
Creative Commons
License


You are not required to show the creative commons license notice when you reprint this work.
Article Statistics
Word Count: 1265

Total Views: 3379

Article Rating: 2.00 of 5
Votes Cast: 12

More Articles By Author:



Last Distribution Date:
2009-11-17 10:15:00

Internal ID: #4552





All Articles are Copyright © 2001-2021 of the Defined Authors.

All other material and images on this site are:
Copyright © 2001-2021, ThePhantomWriters.com