Business Tips Guides

First off it needs to be said that there are certainly other ways to go about establishing credit for your business. These four methods are just a tried and true means of doing so rather quickly. Of course most of the credit limits will be low but over time as your business grows these limits can be raised. All you need to do is develop a good clean history with the credit provider. So let’s talk about four of the easiest methods available to build up your company’s credit.

Credit cards are probably the number one recognized way of building credit. And it doesn’t matter whether it’s for an individual or a business. But credit cards come with some risks so they need to be used carefully. For one you have to be aware that any credit card that you apply for on behalf of your business will want you to sign the contract as the guarantor. This means if the bill doesn’t get paid the credit card company will start calling you. But having two to three credit cards is ok as long as you have the ability to pay them off regularly and not carry a balance. And there are plenty of low interest cards that you can apply for if you take the time to shop.

A Second option is getting a store card. Having a store card to your local office supply or warehouse store can be a good way to give you some financial flexibility and convenience when you need basic office supplies or other items. And it will help you build your business credit rating.

Your third option is to ask your suppliers for a line of credit. Often if you take the time to develop a good relationship with your suppliers then they may be open to providing you with a credit line and a thirty day grace period in which you can make your payments. Often your suppliers will offer a discount for paying your bill before the thirty day period ends. This can save your business money and build up goodwill with your suppliers. Ultimately your suppliers want to work with you and providing you with a credit line is a way that they can tighten up their relationship with you. So this can be a win win for both.

The final way is your bank. Of course building a solid relationship with you bank is important. But your bank also has the ability to provide you with a revolving credit line. This line can be used to pay off larger short term expenses that you might not have the funds for yet. The idea is simple. You establish a credit line with your bank. When you fall short of money to make a bill payment on time then you borrow money from the credit line to pay the bill. Once you get paid by your customers you repay the amount borrowed. This allows you to stay in good standing with your suppliers and other creditors.

Because your business needs every bit of financial flexibility it can possibly get. You can use as many of these options as you might find necessary to establish credit for your business. You just need to decide which methods are best for your business.

Cash Miller is an expert in small business affairs. To receive more tips that can help your business and allow you to crush your competition you can sign up for his FREE Newsletter. Once you’ve signed up your going to receive access to 5 FREE E-Books that can help your business prosper. And as a Bonus FREE Newsletter Members can expect to receive an additional FREE E-Book each week.

Much has been written about various cycles in the stock market, other commodities and investments.
One very famous example is the Delta Phenomenon, a trading book that sold huge quantities at $175 per copy (and some for many many times that). The basic idea has to do with lunar cycles.

Lunar cycles? Stock market? About now, I can hear you saying, - what a bunch of #^$%, but bear with me because, if you are of the hard core left brained approach to such things, I would like to point out that even the Atlanta Federal Reserve has published a white paper on the geomagnetic influences on stock market cycles (http://www.frbatlanta.org/invoke.cfm?objectid=AFD46B63-2852-4812-BE83E6D0C777F4BF&method=display).

I have done a tremendous amount of research in this area, devoting several years of my life to this very topic. Much new research in astrophysics is revealing we really live in a very electric universe (http://www.thunderbolts.info/home.htm). I have been able to achieve winning percentages in the 90% range on longer time frames using geomagnetic data to time the stock market. So, don’t knock it til you try it

Modern world culture has largely abandoned the use of what our forefathers commonly used, and that is the lunar calendar. Many ancient cultures, such as the Chinese or those of the Jewish faith, for example, still retain this tradition. Many Buddhist traditions carry certain days of the lunar month as having certain significance. This is also true in Indian writings such as the Vedas.

Is there some wisdom to counting out events according to lunar cycles instead of only solar ones as we do here in the west? Does reliance on a purely solar calendar hide things from us that would otherwise be obvious on another interval? I certainly think it does. After all, the moon, for example, surely influences fluid flow, and we are largely made, of water. The moon and sun also significantly influence charges on the ionosphere that impact our environment. So, these things all tie together. As mentioned, physics is now coming to find more detailed reasons to believe electromagnetism and gravity are really opposite sides of the same coin. For more on this, you might enjoy the articles of Myles Mathis at http://www.milesmathis.com/

There are many physical cycles we could analyze that influence human behavior as it relates to the stock market. As an exercise, let’s see if we can find any truth to stock market cycles that are based around the lunar month (from new moon to new moon). There are many such cycles we could analyze, but this one will suffice to show some interesting cycles and, how one might go about discovering them. Then, you can write me to tell me what you have found

To start with, in trying to find the data to do these tests, I quickly found there was no commercially available software that could export any reasonable amount of data. So I developed my own. I call it the Astro Data Generator. It will generate any data you need for just about any planetary body in the solar system (ie. Declination , longitude, speed and distance etc.).

The new moon is simply an event that occurs when the sun and the moon rise at the same time. So I export data for the sun and moon and use my spreadsheet to identify when they cross. Then, from that point, I will count forward, buying and selling the S&P 500 (the best example of the tradable US stock market as a whole) at each point (daily) in the cycle. Here is what I found:

Day of Lunar Month Return 1 1990.02 2 1799.99 3 415.57 4 321.68 5 170.84 6 715.00 7 717.81 8 710.68 9 418.36 10 1407.20 11 1127.62 12 595.04 13 136.85 14 1516.28 15 1304.88 16 1567.51 17 615.56 18 1168.01 19 1136.41 20 885.02 21 1507.10 22 14.70 23 928.61 24 244.59 25 1322.76 26 1833.98 27 464.22 28 1300.97 29 396.03 30 814.03

As can be seen in the above table, there is an excellent bias around purchasing the 23rd or 24th day of the lunar month and holding into the 4th day of the lunar month. We can also see a bias as follows:
5th-14th short, 15-17 long and 18-21 short.

As you can see, there are clearly cycles present here. In fact, this particular end of month buying and carrying over into the new month bias is well known on a calendar basis. However, I have never seen a study done identifying an end of lunar month pattern like we have done here. It is a unique study. It is often reasoned that this solar calendar effect is due to window dressing by fund managers to make their portfolios look better. Seeing this lunar bias makes me wonder whether it is in fact something altogether different. To get to the bottom of it would require more research that is beyond the scope of this article.

This is certainly not trading advice at this point. For example, to turn this into a tradable pattern, I would do some statistical analysis to see the distribution of trades. Either way, it tells us that much more about human behavioral (stock market) cycles that, could themselves be driven by external forces that are cyclical themselves.

Research in the area of stock market cycles that are driven by other external phenomena is a very fruitful area of research that can lead to substantial benefit. Hopefully the future will bring more thoughtful minds into this arena.

Rob Mitchell is co-owner, researcher and head trader at EminiForecaster.com , an internet website specializing in cyclical stock index swing trading. For more articles like this visit my blog

Credit cards are becoming more and more widely used in the United States, making credit card advances an increasingly relevant method of business financing for small businesses in particular. In 2006, there were over 984 million bank-issued Visa and MasterCard credit card and debit card accounts in the United States, and over 450 million Visa cards in the U.S. Therefore, accepting credit cards not only makes you one step closer to being eligible to receive a business cash advance, but it could also possibly boost your business’s sales.

A merchant must accept credit cards in order to receive a credit card advance because the advance is repaid through customers’ credit card purchases. A merchant who does not accept credit cards is then ineligible to receive credit card advances, and has one less accessible source for business financing. Having access to readily available funds is extremely important for a business owner, and is becoming increasingly important today as acquiring bank business loans is becoming more and more difficult.

There are various reasons why some merchants choose not to accept credit cards. Some feel that the costs of accepting credit cards would cause them to raise their prices, and they don’t want to make their customers pay for their decision to accept credit cards. For many places, “…credit cards represent processing fees, equipment costs and additional time to complete transactions that they just don’t want to take on,” states Credit Cards’ website. But looking at the bigger picture, the benefits that come along with accepting credit cards may be greater than the disadvantages. Some people simply don’t like carrying cash; others want to gain points to earn rewards on their credit cards, and more and more people are using credit cards to survive. A recent study showed that people are more likely to pay their credit card bills before their mortgages.

As of 2005, credit cards accounted for 19 percent of all purchases and debit cards accounted for 33 percent of all purchases. Combined, they accounted for over half of all purchases in the United States. And according to Credit Cards’ website, businesses forfeit up to 80 percent of consumer impulse buys if they don’t accept credit cards.

How many times have you gone into a store and as you attempt to hand your debit or credit card over to the cashier he/she says, “We accept cash only”? Then anger consumes you for a brief second as you realize you’re going to have to pay an extra $2.50 to use the in-store ATM machine to get cash, or leave empty-handed. If you don’t accept credit cards, your customer’s may often feel the same way, and this can result in an abundance of missed sales.

Credit card advances are not only for retail stores. Many service-oriented stores can also receive credit card advances. Hair and nail salons and other services that previously only accepted cash are also beginning to accept credit cards, making the advantages of a credit card advance available to them as well.

If your business accepts credit cards, and you need additional funds, apply for a credit card advance. Once your advance is approved a small percentage from your businesses credit card sales will go towards your credit card advance repayment. The payments adjust to the flow of your businesses sales. It’s that simple! You’ll never have to make a fixed monthly payment.

With the credit card advance, you can get the most out of your customers’ purchases, and you’ll come to appreciate them in a whole new light.

David Castro often writes articles about Credit Card Advance for Merchant Resources International - To Learn more Visit Us at http://www.creditcardadvance.us

For most of us, the holiday season means a chance to create warm memories with friends, family and loved ones. But for years, it has also meant crowded shopping malls and stores, and the emptying of tons of money from consumers’ pockets.

Retailers usually expect to experience their highest sales volumes during this time, investing in extra inventory, extensive marketing and slashing prices to compete with competitors. Black Friday (the Friday following Thanksgiving) has repeatedly been one of the busiest shopping days of the year, signifying the official start of the consumer Christmas season.

Overall, the holiday season is a highly-anticipated and enjoyed time of year. But for merchants, this year may be a little different as the tables turn, and retailers are more likely to feel the pain of the holiday season than consumers.

Deloitte LLP a company offering financial advisory services and TNS Retail Forward Inc., a market research firm, both predict that this year will produce one of the weakest Decembers since 1991. A variety of factors have aided in their coming to this conclusion, including high fuel prices, rising food prices, higher unemployment rate, a tough housing market, and the credit crunch.

So what does all of this mean for small business retailers? These happenings could very likely produce a widespread need for financing. Small business owners may need extra money to finance endeavors that will promote more sales during this tough holiday season. They may also need extra money to carry them through a holiday season that is less prosperous than what they may be used to.

This can be a scary time for retailers, unaware of the burdens the upcoming holiday season may bring. But the availability of the business cash advance should be of some relief to these small retail business owners. Although business cash advances can help boost a business and are useful all year-round, use your business cash advance to promote strength and maintenance within your small business as the days grow shorter and the air grows colder.

How Can a Business Cash Advance be Useful During the Holiday Season?

Employee Training

In an article titled “How Small Stores Can Lure Holiday Shoppers,” Business Week Online writer, John Tozzi advices small business owners to use their ability to develop strong, personal customer relationships and offer excellent customer service to their benefit. Small businesses may not be able to compete with larger ones when it comes to prices, but they do have the upper hand on big businesses when it comes to customer relations. Small businesses have an opportunity to get to know their customers on a personal level. Exploiting this advantage may be the difference in making sales and not making sales.

A business cash advance could finance customer service training for your employees, where they can learn how to give customer service that encourages customers to return again and again.

Increase Marketing

Since price slashing is not viewed as a good idea for small businesses, columnist, Steve McKee poses a different idea. “…thousands of previous purchase decisions have taught me price isn’t merely a reflection of product quality, it’s an indicator of it as well,” writes McKee. “If something is more expensive, it’s usually for good reason.” With this in mind, he encourages small business owners to keep their prices, but focus on creating customer loyalty due to the quality of their products, which is reflected in their prices.

This can be done through marketing. With a business cash advance, you may be able to finance such a marketing plan.

Stay Afloat

If none of the above options are for you, but you notice that your holiday sales are not as high as you’d hoped and/or expected, you may want to use a business cash advance just to keep your business on its feet during this difficult period. The money you receive in your business cash advance can help pay for your business’s daily operating expenses.

David Castro often writes articles about Business Cash Advance for Merchant Resources International - To Learn more Visit Us at http://www.businesscashadvanceloan.com

You have plans to expand your business. You’ve outlined everything that you want to do, and now all you need is the money to take these plans off of the paper and put them into existence. You’ve already gone the bank route before, only to find that your credit score was not high enough, and you did not have sufficient collateral. Plus you would rather not have to deal with making fixed monthly payments.

So this time you decide to seek out a merchant cash advance. After contacting a lender, completing a short application, and submitting the last four months of your business’s credit card statements and a copy of your business’s lease, your information was reviewed and soon after, your bank account was funded. You understand that a small percentage of your business’s future credit card sales will go towards your repayment and you are rejoicing in the fact that you never have to remember to make a payment, and if your business’s sales are low, your business cash advance payments will also be lower. Now, the only thing that is left to do is put your newly acquired funds to use.

Most small business owners are aware that budgeting is one of the most important aspects of business management. A budget is an itemized allotment of funds for a given period. It helps you to decide how much money is needed for specific tasks and to delegate the appropriate amount of money for task completion. Therefore, making a budget for your business cash advance could make a world of difference. Below is a compilation of tips that can help you to create a budget that will allow you to get the most out of your
business cash advance.

Make a Spreadsheet

Investopedia offers “Six Steps to a Better Budget,” one of which is; make a spreadsheet. Making a spreadsheet before attempting to make purchases can be a great help. It allows you to view how much money you have, and what you plan to spend, neatly and on paper. Using a spreadsheet is a way to create an organized budget.

Don’t Let Your Budget Constrain You

In an article titled “8 Ways to Make Your Budget Work” for Microsoft’s small business center website, author Jeff Wuorio advices small business owners to “Use your budget as a form of restraint, not constraint!” A budget should be used as a guideline, to keep you on task. But sometimes things may come up that were not budgeted for, but if purchased, will end up benefiting your business. “It’s often impossible to budget for a valuable last-minute seminar or a trip to a trade show to make valuable contacts,” writes Wuorio. Use your own judgment to determine when it is okay to spend money on things that may not be in your budget.

Overestimate

When it comes to budgeting, it is best to overestimate a cost then to underestimate it. If you end up spending less than you planned, you will have money left over, but if you end up spending more than you planned, you will come up short. Which would you rather do? Usually, budgeting consists of lots of educated guesses, so when doing so, make sure to leave your self a nice cash cushion, to help prevent going over budget.

David Castro often writes articles about Business Loans for Merchant Resources International - To Learn more Visit Us at http://www.cashprior.com

Debt factoring takes place when a business sells its accounts receivable to a specialized finance company known as a factor. The receivables are sold at a discount and the factor has the responsibility of collecting the outstanding amounts. This is also referred to as accounts receivable financing or factoring.

This type of arrangement is used by many businesses to improve cash flow and shorten the cash cycle. The business receives immediate cash from the factor and does not have to handle the collections process. Before entering into a debt factoring agreement, there are several key advantages and disadvantages to consider.

The primary benefit of debt factoring is that it provides a quick method of financing. Instead of waiting to receive cash from customer accounts receivables, the factor pays the business immediately. This can be important if the business needs cash to pursue future growth or expansion. It can also be a viable alternative for business wary of taking on debt or issuing equity to raise capital.

Another key benefit is that cash flow is improved and the cash cycle is shortened. The amount of time it takes a business to turn cash to goods to cash is accelerated. This fast turnaround may allow the business to take on additional customers or purchase additional inventory.

Protection from bad debts is a potential benefit. This would only apply if the business has entered into a non-recourse factoring agreement. Under this type of agreement, the factor assumes the risk of bad debts. In other words, if a customer account cannot be collected, the factor must absorb the loss.

Cost effective collections is another potential benefit. The business does sell the accounts receivable at a discount, but it also hands off the entire process of accounts receivable collections. The business has effectively outsourced the process which can save valuable time or reduce the number of employees needed for back office work.

On the other side of the equation, debt factoring does carry a number of distinct disadvantages. The primary disadvantage is the cost. Under a factoring agreement, the factor purchases accounts receivable at a discount. Depending on the discount percentage, a factoring agreement may imply a higher cost of capital. This cost must be compared to the cost of other methods of financing which are available to the business.

A second disadvantage is that when a business works with a factor, they are introducing an outside influence into their business. Since the factor will be responsible for collecting accounts receivable and may be responsible for amounts which cannot be collected, they may try to influence sales practices. This can include attempts to influence sales policies and timing, as well as the customers that a business with deal with.

Bad debt liabilities are a potential disadvantage. This would be applicable if the business has entered into a resource factoring agreement. Under this type of arrangement, the business is responsible for any amounts that cannot be collected from customers. The discount rate at which the factor purchases the accounts is usually lower, but this must be considered in light of potential charges for uncollectible accounts.

Customer relations are a final potential disadvantage. Since a third party will now deal directly with customers to collect amounts owed, this can negatively impact their perception of the business. This is especially true if the factor engages in aggressive or unprofessional practices when collecting accounts.

Debt factoring represents a complex business agreement. It usually requires a long term contract and the modification of some current sales practices. When evaluating whether debt factoring is a good choice for a business, both advantages and disadvantages must be weighed to make an informed descision.

Michael Zielinski is an internet entrepreneur. Find additional information on debt factoring or learn additional factoring advantages.