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Tag: Time
Right now is the perfect time to build your digital presence
Right now is the greatest time ever to be alive. Well not right right now. Right now is challenging. Let me rephrase. The last 10 years have been the greatest time to be alive. Higher …
The post Right now is the perfect time to build your digital presence appeared first on Paper.li blog.
Reach Your Optimal Work Time and More –10 Brilliant Business Tips of the Week
The Hottest and Most Brilliant Business Tips for YOU – Reach Your Optimal Work Time and More
Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Get to the optimal work time for you and your employees and stop wasting time!
Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.
And these brilliant business tips are all here for free! So settle in and scoop up these tantalizing goodies before your competition does!
#10. This is the Good Kind of Enabler
Our first jaw-dropping tip is all about sales enablement. Mail Shake says it’s the act of helping someone better reach the objective of making a sale. Here at Credit Suite, those terrific folks are called the Setters Team.
The best thing people in sales enablement do is smooth the way for sales to do its thing. Sales will make more sales and be more successful if they know their prospects better. And they get this knowledge from the people in sales enablement.
But that’s not where sales enablement stops. The sale doesn’t end the relationship.
Post-Sales Enablement
Your customers won’t like it if they’re buttered up and sold to and promised to and then dropped like yesterday’s news.
So there’s another piece of the sales enablement puzzle. This is maintaining the relationship. The sales enablement team is extraordinarily helpful here as their work frees up the sales team to concentrate on getting new sales.
The sales enablement team is, of course, the perfect group to ask if the customer is happy. Maybe their circumstances have changed and they can benefit from an upsell. Or maybe there’s something which just annoys them about your product or service. Giving your customers empowerment and listening to their concerns is extremely helpful when it comes to retention and renewal.
Your goal should always to be to surprise and delight your customers. A sales enablement team can make it easier to do just that.
#9. Keep Your Facebook Pictures the Right Size and Reap the Rewards
The next awesome tip is about Facebook ads. Wordstream notes the main image size for Facebook has been 1200×628 for several years now. But that’s not the only image size you can use on the largest social media platform on the planet.
The article is just fantastic as it goes into exquisite detail on the sizes and where you should use them. It also outlines the advantages and disadvantages of each type.
In fact, this article goes into where in the customer sales journey you should use each type of image. This is an outstanding amount of free information in one short article. We highly recommend bookmarking it and referring back to it frequently.
Yes, it’s that good.
If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Reach your optimal work time today.
#8. Customer Loyalty Rocks!
Our following life-changing tip concerns customer loyalty programs. Sleek Note lays it all out for us.
You’ve seen these in a thousand places by now. It’s the card your local coffee shop gives you and, once you get the eleventh punch, you get your twelfth latte free. Or maybe you get a muffin. We might be hungry ….
This article adds a few twists to the genre. One is what we all know as Amazon Prime – pay for the privilege of saving money. Which seems weird when we put it that way, eh? But the bottom line with Amazon Prime (and the article’s example, Barnes & Noble) is you are paying for more than a discount. It’s also faster, free delivery and a greater selection.
Save the Planet With Your Customer Loyalty Program
Say what? The Body Shop ties its loyalty program to charity. They know their clientele cares about the planet and about animal testing. The logical extension of that is animal welfare in general. Hence, beyond offering the usual perks, The Body Shop lets you donate your points to a specific animal welfare charity, Born Free USA.
The Community Approach
Plus there’s Sephora. In addition to offering products and discounts, they bring access to an exclusive club of like-minded users. Hence they get a commitment that goes beyond the free makeup samples they provide on your birthday. Pretty cool, huh?
#7. Get a Bigger and Better Email List
Speaking of loyalty, for our next sensational tip, we looked at growing your email list. WP Beginner says that the tried and true methods can help your business, too.
Signups Galore
Make it easier for people to sign up for your emails. Don’t make them hunt for how to do this. In fact, the article gives a number of places on a website or in a blog post or other webpage where you can add a signup form.
Perhaps our favorite tip is to use multiple signup forms. After all, your customers are individuals. Treating them all like one, big monolith isn’t going to get you sales or win you any fans.
Dovetailing with this is the idea to create multiple lead magnet pages. A lead magnet essentially offers added value for your customers and prospects. Hence you’re offering 5% off or the like, most likely clearly on your signup form.
Treating customers and prospects like individuals will go a long way in all aspects of your business.
Twitter to the Rescue!
Then there’s Twitter. Users can even sign up for your mailing list without having to leave Twitter. Now that’s convenient.
#6. Solve Problems and Make Your Business Better
This tip is so helpful, and it works! Startup Professionals tells us all about successful business problem solving.
There are a number of actionable tips, including acknowledging a problem exists, and verbalizing the problem.
So we recommend reading the article in its entirety. But first, a real life story.
Personal Conflict and How Hard It’s to Get Transportation in Some Parts of the US
So.
My darling cousin got married a few years ago, in the western part of Westchester County, New York, near Dobbs Ferry. The venue was beautiful, and it was right at the peak for foliage.
There was just one problem.
Your intrepid blog writer lives in Boston. My brother lives just outside DC. Our elderly parents live pretty far out on Long Island. We were at odds as to how to get there.
Flying was a bad idea as the closest airport was still over a half an hour away, and everyone had so much stuff to take, we’d all be over the weight limits. This was a three-day weekend extravaganza, after all.
This problem was solved by figuring out what worked best for all. This turned out to be a train for my husband and me, and driving for my parents and brother. My parents got us, and I was able to drive the rest of the way and do all of the driving while at the event. Plus I drove back to the Newark train station when it was time to go. So the folks didn’t have to drive quite so much.
And having two cars for the event meant flexibility and comfort.
How Do You Apply This to Business?
It all came down to negotiations. And it also came down to recognizing how fulfilling others’ needs also fulfilled our own. It also meant embracing the fact that the solution wasn’t a perfect one. After all, my parents still had a few hours of driving to do after the train station. But at least it was better than without us.
So consider looking outside yourself and your own needs and think about the other person’s. What satisfies them just might help you out, too. But you will never know if you just sweep your company’s problems under the rug all the time.
#5. Reach Your and Your Employees’ Optimal Work Time
Grab this mind-blowing tip while it’s hot!
Your and your employees’ optimal work time is a vital decision for you to make when hiring.
What do we mean by that? The question is, which is better for your needs: full-time, part-time, or temp?
Effortless HR says there are a number of factors to take into consideration. It’s not just about the money!
Your Employees’ Optimal Work Time and Their Productivity
How fast are your employees at doing their tasks? If Susan gets the same task done in half the time that Dave does, do you make her a part-timer? Truth is, we think that’s kind of unfair. Is she getting punished for efficiency?
Don’t we all want more efficient employees? So why work with them less?
So, we were happy to see this article didn’t push for that. Rather, the idea is to see how much can get done – but productivity can only be improved so much. Plus, we think you should be concerned with your workers’ health and well-being. Bring a slave driver isn’t good for anyone. All that does is increase absence and turnover.
One exceptional point the article makes about optimal work time is that two part-time workers don’t quite equal one full-timer. Part of this is due to more flexible work schedules which many part-timers get as their due. And another part is double the training, more sick days, more slow days, more ramp-up time, etc. Saving on paying full benefits just might not be worth it.
What if Temping is Your Employees’ Optimal Work Time?
We see this in retail all the time. As the holidays wind up, more and more people will get a job in malls and stores. Or it might be a second job for them, to pay for gifts or get ready for tax season or whatever.
And then once the holidays are over, those people will experience layoffs.
Er, you didn’t think Santa’s helpers worked in the mall all year ‘round, now, did you?
And of course tax season reminds us of the people with advanced math skills and accounting degrees who can get temp work as tax preparers and reviewers.
If your business is seasonal in nature, temping might be the optimal work time for most of your employees. If you sell swimming pools, you probably aren’t seeing a lot of sales action in November. So why not stay on good terms with those folks and rehire them when the weather gets hot again?
Even non-seasonal businesses might have big projects where they temporarily need more hands on deck. It’s another option for filling your staffing roles and giving your non-temp employees their own optimal work time, too.
If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Reach your optimal work time today.
#4. Marry Social and Email Marketing
Check out this spectacular tip, all about combining the power of social and email marketing. The Self Employed notes that the return rates from email marketing are far better than those from social.
And that makes sense, as email is something which goes straight to your customers and prospects, whereas social postings are subject to platform rules and algorithms. Of course your audience won’t necessarily open your emails. They might bin them, or their email programs might. Or they might skim and then hit unsubscribe.
But there is still a better chance of reaching them this way.
So, Why Bother With Social If Email is So All-Fired Awesome?
Because you can cross platforms, folks!
What this means is, you want to have an email newsletter signup form on your Facebook page. And you want to use snippets from the newsletter on Facebook and Twitter, along with a link to subscribe.
In return, you also want to ask your newsletter subscribers to share your content with their social networks.
But the best part is creating and using a common calendar. Synergize the newsletter and the social media folks so they are quite literally on the same page. That’s where the magic happens.
#3. Control Your Inventory Before it Controls You
It’s not your imagination: this winning tip can help you better manage your company’s inventory. T Sheets tells us that good inventory management can make for a far better customer experience. After all, if you can’t find what they need, or they can’t, or it takes to long to get to them, guess what?
They’ll go to someone else. Someone who has their inventory act together. Very ouch.
Dropshipping Can Save Your Bacon
Our fave tip was to embrace dropshipping. The truth is, we think many businesses can benefit from it. Dropshipping is when you pay someone else to deliver your goods for you.
By working directly with a dropshipping company, you are working with a transport specialist. They will have a better idea of when to start the process, which form of transport to take, etc.
Concentrate on selling your widgets and let someone else handle the headaches of maintaining a fleet and all that it entails. Yes, you will have to pay a fee for shipping. But if you get more time to perfect your product and improve your prospects’ customer journey.
Leave the driving to someone else.
#2. The Holiday Shipping Season is Coming – Ready or Not!
Our second to last unbeatable tip can give you a new perspective on holiday shipping. Fundera reveals all about the busiest time of year – it’s coming faster than you think!
Being ready is, of course, far superior to not being ready. So, here’s how.
One of the best tips is to understand just what are the absolute, last days you can ship in order to make an Xmas delivery. These dates differ from FedEx to UPS and the Post Office, so know those days!
FYI this year Chanukah overlaps Xmas, running from December 22 to the 30th so there may be more deliveries right around the 24th and 25th than in most years.
Give Your Customers Many Happy Returns
We loved this tip, and we know a lot of people will use it. The idea is to, quite simply, make returns easier and more convenient. And, of course, keep a written return policy if you don’t have one already.
Don’t wait until the last minute, when your staff is up to their elbows in sweaters that people didn’t like. Have a policy so they know it and can wield it. And making the process easier can make new customers. They might decide that your return process is so excellent, they would like to do business with you. It can happen!
#1. Adopt an Attitude of Gratitude When It Comes to Your Customers
We saved the best for last. For our favorite remarkable tip, we focused on gratitude and how to thank your customers. The SBA says thanking your customers may not be 100% altruistic on your part.
But you should do it anyway.
Our favorite tip was the one which is the vaguest – offer a little something extra, and make it clear it’s in thanks for them being your customer. The kicker is for it to be a surprise.
Don’t look now, but here’s an upgrade! Surprise – free shipping! Woot, here’s 10% off, just because! Or maybe a little something comes in the snail mail. A card, a gift card, flowers, a fruit basket? Only you know what your customers want, need, and will appreciate.
As always, the only limits are your budget, your time, and your imagination.
So which one of our brilliant business tips was your favorite? And which one will you be implementing now?
If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Reach your optimal work time today.
The post Reach Your Optimal Work Time and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.
Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card
…And How to Find the Best New Business Credit Card for Your Business
Just as Thor has his hammer and Captain America has his shield, every business super hero needs an ultimate tool. You cannot really call them all weapons right? I mean, a shield is not about destroying, but about protection. Everyone knows a hammer is a tool. So, in short, tools can be used as weapons, and superhero tools can serve a variety of purposes, all for the greater good. So too, can your business credit cards. Sometimes, however, it is necessary to pursue a new business credit card, also for the greater good. How do you know when that time has come? Read on and we’ll tell you.
How Do You Know It’s Time for a New Business Credit Card?
You might not think it’s a hard decision. Most business owners fall into two camps. Either they are happy with their card and there is no need for a new one, or you just get a new card whenever you feel like it. Unbeknownst to most, there actually is a right time and a wrong time to get a new business credit card. Not only that, but there is also a right and a wrong way to handle the old one. We can help you with both.
It might be time to ditch the old business credit card and get a new one if:
1. The Fee is More than the Benefits are Worth
Maybe you are paying a hefty annual fee, but you justify it by weighing it against the rewards and interest rate you receive with the card. It’s always wise to review that however. Next time you are about to fork over that fee, take a look at what your options are. Do you actually use the rewards offered with that credit card? Are the rewards based on fuel spending and maybe you don’t travel? Perhaps the rewards are at dining establishments you do not frequent.
Is that interest rate really the best? Maybe you had a great promotional rate when you first got the card but now it’s nothing special. Maybe the interest rate was the best available at the time but you are not so sure any more.
If either or both of these situations sound familiar, it may be time to ditch the old card and look for a new business credit card. There is no point in paying the annual fee if you are no longer reaping the benefits that made you willing to pay it in the beginning.
2. Your Spending Habits Have Changed
Have you outgrown the credit limit on your own card? Maybe you spend more now that your business has grown. It could also be that you spend on different things now. In the beginning you may have used your card mostly for business supplies and sales dinners, whereas now you may use the funds for travel expenses and inventory more often.
Things change, and those things include spending habits. The card that worked for your spending habits before may not be the best option for your current spending habits. Take a look at what you have versus what’s available in light of this, and you may see its time to ditch your old card and get a new one.
3. You Now Qualify for Better Perks
For most business owners, their first business credit card is the first one for which they qualify for approval. As your business, and your credit score, grows, you can get so much more. If it’s been awhile since you shopped around, or if you see that you are getting unsolicited offers for cards that offer better perks than your currently have, it may be time to check out what new business credit cards are out there and ditch your old one.
Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
4. You Can Get a Better Interest Rate with a New Business Credit Card
Another thing that you can get stuck with in the beginning, simply because you qualify for nothing better, is a lousy interest rate. After you spend some time managing your business, and your finances, wisely, you are likely eligible for much better.
You can start with calling your current credit card company, but if they won’t budge, it’s time to drop the old card and start looking for a new business credit card.
5. There is Any Better Offer With No Fee
Aside from a lousy interest rate and non-existent or useless perks, you can get stuck with an annual fee. Sometimes the fee it worth it for the perks. However, it is important to keep watch for cards that have better perks, better rates, and no annual fee. Even if you get the same perks and the same rates, if there is no fee you are better off. If you are getting offers that do not include an annual fee, it might be time to find a new business credit card.
6. You Anticipate an Upcoming Large Purchase
Sometimes it is simply a matter of dollars. If you foresee a larger purchase in the near future, you may need to start looking for a new card. For example, if you need to buy a new industrial refrigerator or oven, or both, you might not want to put that on a card you use for regular purchases. Not only can it mess with the amount of funds you have available, but often you can find great deals on interest rates from dealers that sell what you are looking to buy. It can help to save money and manage finances, by keeping larger purchases separate, if you just go ahead and open a new business credit card.
Bonus: Your Old Card Is Connected to Your Personal Credit Score
You need your business cards to be based on and reporting to your business credit. In the beginning however, most businesses do not have business credit. They can get cards based on their personal credit score, so they never even think about business credit.
When it comes to running a business however, business credit is better.
If you have great personal credit, you may think business credit is a non-issue. Regardless of what your personal credit looks like, as a business owner it is important that you begin to build business credit. Here’s why.
If you use business credit to handle business transactions, your personal finances will not be affected by those transactions. This means that if your business fails, your personal credit score will stay intact. Also, you will not be personally liable for your business debts.
In addition, paying business expenses with personal credit cards can keep balances near the credit limit. This is true even if you pay everything off each month. Business expenses are large, and personal credit cards usually have smaller limits than business credit cards.
Your debt-to-credit ratio is affected by this. That will negatively affect your personal credit score even if you make payments on time.
How to Build Business Credit
You know the why, now here’s the how.
Get an EIN
It is a number for your business, kind of like your personal SSN. Apply on the IRS website. It doesn’t cost anything, and you can use it on business credit applications instead of your SSN. You may still need to provide your SSN for fraud prevention, but it will not be used to access your personal credit score.
Formally Incorporate
A business must be incorporated to have business credit. The idea is that your business needs to be established as an entity separate from yourself in every way. Incorporation not only accomplishes that, but it also offers you some liability from business debts.
Dedicated Contact Information
You need a dedicated business address and telephone number. The phone number should be toll free, and the business should be listed in the directories with its own contact information.
Professional Website and Email
All businesses these days need a professional, user friendly website to be able to compete. You also need an email address that is specifically for the business. Do not use a free email service such as Gmail or Yahoo. The business email address should use the same URL as the business website.
Business Bank Accounts
A separate business banking account is a must. You can pay yourself from this account, but do not run personal expenses through it.
You Need a D-U-N-S Number
Yes, another number. This time it comes from Dun & Bradstreet. They are the largest and most commonly used business credit reporting agency, so having a credit report with them is necessary for getting business credit. The number is free on the D&B website, but they will try to sell you other services. You don’t need any of them.
A Quick Note on How to Start Building Business Credit
Once you accomplish this, it is time to work on building your business credit score. There is a process, and you have to work your way through it patiently. It takes time, but the payoff is big.
Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
The Vendor Credit Tier
This is your way in. These are vendors that will extend net 30 terms on invoices and then report your payments to the credit reporting agencies. Once they start doing that, your business credit score will be established and grow from there.
This tier includes vendors such as Quill.com, Granger, and Uline that sell items you can use in your business every day. Make a few purchases with net 30 terms, make your payments on time, and watch your business credit score explode. Find more about vendors that can help you build business credit here.
Working Through the Credit Tiers
After you have 7 to 10 accounts reporting from the vendor credit tier, it should be possible to get approval in the retail credit tier. These are credit cards attached to specific stores such as Best Buy, Amazon, and Office Depot.
After you have several accounts reporting from the retail credit tier, you will qualify for cards in the fleet credit tier. These cards are issued by companies like Shell, Fuelman, and WEX to be used for fuel and vehicle repair and maintenance.
The last tier is the cash credit tier. When you have enough accounts reporting from each tier, and if you are keeping current on all your payments, your score will be strong enough to get your approval for these cards. They are general credit cards such as MasterCard and Visa that are not attached to a specific store. Typically, they have higher limits and more rewards options.
What to Look for in a New Card
This part is easy. You want something, everything if possible, to be better than the old card. Your old tool should by default be more powerful than the old one.
- Annual Fee– Whether the fee is the actual reason for the change or not, if you are changing anyway look for the lowest annual fee possible that also fulfills all your other needs.
- Interest Rate– Again, maybe you are changing specifically for the lower rate, and maybe you aren’t. Either way you need to find the lowest interest rate possible that still gives you everything else you need.
- Perks– look for perks you will actually use. If it’s all travel miles and you never travel, there is no point.
- Credit Limit– A limit that will not handle your spending habits or the amount of your new purchase isn’t going to do you any good. Look for the highest limit you are eligible for. Remember that if you do not use it all, it will only help your debt-to-credit ratio, which in turn helps your credit score.
Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
As with all things, you can do an analysis of the cost versus the benefit. If the annual fee means you get a super low interest rate or perks that will save you several hundred dollars a year, it may be worth it. Before you make a decision, consider this in light of the reason why you are changing versus what is available to you at the moment.
Should You Shut Down the Old Card?
This is where it can get iffy. You might think it obvious that you close the old account. That is not always the best option however. It can actually be beneficial to keep it open.
The average age of all of the accounts on your credit report affects your credit score. The older your accounts are, the better it is for your score. Opening a new account already lowers that average, so closing an older account is going to lower it even further.
If you have had the account for a while, it might be better to zero it out and keep it active. Be sure to determine what level of activity is necessary to keep the account active. If you have to make a small monthly purchase and pay it off every month or so it may be worth it to keep and older account open.
Is it Time for a New Business Credit Card?
The short answer is, maybe. If your credit is at a point where you can get better rates and incentives with a lower annual fee, then it is time to get a new card. If your credit limit on your old card can’t support your current or changing spending habits, it’s time for a new card. Lastly, if your business credit cards are on your personal credit report, it’s time to build business credit and get a new business credit card.
The post Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card appeared first on Credit Suite.
The post Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card appeared first on Buy It At A Bargain – Deals And Reviews.
Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card
…And How to Find the Best New Business Credit Card for Your Business
Just as Thor has his hammer and Captain America has his shield, every business super hero needs an ultimate tool. You cannot really call them all weapons right? I mean, a shield is not about destroying, but about protection. Everyone knows a hammer is a tool. So, in short, tools can be used as weapons, and superhero tools can serve a variety of purposes, all for the greater good. So too, can your business credit cards. Sometimes, however, it is necessary to pursue a new business credit card, also for the greater good. How do you know when that time has come? Read on and we’ll tell you.
How Do You Know It’s Time for a New Business Credit Card?
You might not think it’s a hard decision. Most business owners fall into two camps. Either they are happy with their card and there is no need for a new one, or you just get a new card whenever you feel like it. Unbeknownst to most, there actually is a right time and a wrong time to get a new business credit card. Not only that, but there is also a right and a wrong way to handle the old one. We can help you with both.
It might be time to ditch the old business credit card and get a new one if:
1. The Fee is More than the Benefits are Worth
Maybe you are paying a hefty annual fee, but you justify it by weighing it against the rewards and interest rate you receive with the card. It’s always wise to review that however. Next time you are about to fork over that fee, take a look at what your options are. Do you actually use the rewards offered with that credit card? Are the rewards based on fuel spending and maybe you don’t travel? Perhaps the rewards are at dining establishments you do not frequent.
Is that interest rate really the best? Maybe you had a great promotional rate when you first got the card but now it’s nothing special. Maybe the interest rate was the best available at the time but you are not so sure any more.
If either or both of these situations sound familiar, it may be time to ditch the old card and look for a new business credit card. There is no point in paying the annual fee if you are no longer reaping the benefits that made you willing to pay it in the beginning.
2. Your Spending Habits Have Changed
Have you outgrown the credit limit on your own card? Maybe you spend more now that your business has grown. It could also be that you spend on different things now. In the beginning you may have used your card mostly for business supplies and sales dinners, whereas now you may use the funds for travel expenses and inventory more often.
Things change, and those things include spending habits. The card that worked for your spending habits before may not be the best option for your current spending habits. Take a look at what you have versus what’s available in light of this, and you may see its time to ditch your old card and get a new one.
3. You Now Qualify for Better Perks
For most business owners, their first business credit card is the first one for which they qualify for approval. As your business, and your credit score, grows, you can get so much more. If it’s been awhile since you shopped around, or if you see that you are getting unsolicited offers for cards that offer better perks than your currently have, it may be time to check out what new business credit cards are out there and ditch your old one.
Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
4. You Can Get a Better Interest Rate with a New Business Credit Card
Another thing that you can get stuck with in the beginning, simply because you qualify for nothing better, is a lousy interest rate. After you spend some time managing your business, and your finances, wisely, you are likely eligible for much better.
You can start with calling your current credit card company, but if they won’t budge, it’s time to drop the old card and start looking for a new business credit card.
5. There is Any Better Offer With No Fee
Aside from a lousy interest rate and non-existent or useless perks, you can get stuck with an annual fee. Sometimes the fee it worth it for the perks. However, it is important to keep watch for cards that have better perks, better rates, and no annual fee. Even if you get the same perks and the same rates, if there is no fee you are better off. If you are getting offers that do not include an annual fee, it might be time to find a new business credit card.
6. You Anticipate an Upcoming Large Purchase
Sometimes it is simply a matter of dollars. If you foresee a larger purchase in the near future, you may need to start looking for a new card. For example, if you need to buy a new industrial refrigerator or oven, or both, you might not want to put that on a card you use for regular purchases. Not only can it mess with the amount of funds you have available, but often you can find great deals on interest rates from dealers that sell what you are looking to buy. It can help to save money and manage finances, by keeping larger purchases separate, if you just go ahead and open a new business credit card.
Bonus: Your Old Card Is Connected to Your Personal Credit Score
You need your business cards to be based on and reporting to your business credit. In the beginning however, most businesses do not have business credit. They can get cards based on their personal credit score, so they never even think about business credit.
When it comes to running a business however, business credit is better.
If you have great personal credit, you may think business credit is a non-issue. Regardless of what your personal credit looks like, as a business owner it is important that you begin to build business credit. Here’s why.
If you use business credit to handle business transactions, your personal finances will not be affected by those transactions. This means that if your business fails, your personal credit score will stay intact. Also, you will not be personally liable for your business debts.
In addition, paying business expenses with personal credit cards can keep balances near the credit limit. This is true even if you pay everything off each month. Business expenses are large, and personal credit cards usually have smaller limits than business credit cards.
Your debt-to-credit ratio is affected by this. That will negatively affect your personal credit score even if you make payments on time.
How to Build Business Credit
You know the why, now here’s the how.
Get an EIN
It is a number for your business, kind of like your personal SSN. Apply on the IRS website. It doesn’t cost anything, and you can use it on business credit applications instead of your SSN. You may still need to provide your SSN for fraud prevention, but it will not be used to access your personal credit score.
Formally Incorporate
A business must be incorporated to have business credit. The idea is that your business needs to be established as an entity separate from yourself in every way. Incorporation not only accomplishes that, but it also offers you some liability from business debts.
Dedicated Contact Information
You need a dedicated business address and telephone number. The phone number should be toll free, and the business should be listed in the directories with its own contact information.
Professional Website and Email
All businesses these days need a professional, user friendly website to be able to compete. You also need an email address that is specifically for the business. Do not use a free email service such as Gmail or Yahoo. The business email address should use the same URL as the business website.
Business Bank Accounts
A separate business banking account is a must. You can pay yourself from this account, but do not run personal expenses through it.
You Need a D-U-N-S Number
Yes, another number. This time it comes from Dun & Bradstreet. They are the largest and most commonly used business credit reporting agency, so having a credit report with them is necessary for getting business credit. The number is free on the D&B website, but they will try to sell you other services. You don’t need any of them.
A Quick Note on How to Start Building Business Credit
Once you accomplish this, it is time to work on building your business credit score. There is a process, and you have to work your way through it patiently. It takes time, but the payoff is big.
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The Vendor Credit Tier
This is your way in. These are vendors that will extend net 30 terms on invoices and then report your payments to the credit reporting agencies. Once they start doing that, your business credit score will be established and grow from there.
This tier includes vendors such as Quill.com, Granger, and Uline that sell items you can use in your business every day. Make a few purchases with net 30 terms, make your payments on time, and watch your business credit score explode. Find more about vendors that can help you build business credit here.
Working Through the Credit Tiers
After you have 7 to 10 accounts reporting from the vendor credit tier, it should be possible to get approval in the retail credit tier. These are credit cards attached to specific stores such as Best Buy, Amazon, and Office Depot.
After you have several accounts reporting from the retail credit tier, you will qualify for cards in the fleet credit tier. These cards are issued by companies like Shell, Fuelman, and WEX to be used for fuel and vehicle repair and maintenance.
The last tier is the cash credit tier. When you have enough accounts reporting from each tier, and if you are keeping current on all your payments, your score will be strong enough to get your approval for these cards. They are general credit cards such as MasterCard and Visa that are not attached to a specific store. Typically, they have higher limits and more rewards options.
What to Look for in a New Card
This part is easy. You want something, everything if possible, to be better than the old card. Your old tool should by default be more powerful than the old one.
- Annual Fee– Whether the fee is the actual reason for the change or not, if you are changing anyway look for the lowest annual fee possible that also fulfills all your other needs.
- Interest Rate– Again, maybe you are changing specifically for the lower rate, and maybe you aren’t. Either way you need to find the lowest interest rate possible that still gives you everything else you need.
- Perks– look for perks you will actually use. If it’s all travel miles and you never travel, there is no point.
- Credit Limit– A limit that will not handle your spending habits or the amount of your new purchase isn’t going to do you any good. Look for the highest limit you are eligible for. Remember that if you do not use it all, it will only help your debt-to-credit ratio, which in turn helps your credit score.
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As with all things, you can do an analysis of the cost versus the benefit. If the annual fee means you get a super low interest rate or perks that will save you several hundred dollars a year, it may be worth it. Before you make a decision, consider this in light of the reason why you are changing versus what is available to you at the moment.
Should You Shut Down the Old Card?
This is where it can get iffy. You might think it obvious that you close the old account. That is not always the best option however. It can actually be beneficial to keep it open.
The average age of all of the accounts on your credit report affects your credit score. The older your accounts are, the better it is for your score. Opening a new account already lowers that average, so closing an older account is going to lower it even further.
If you have had the account for a while, it might be better to zero it out and keep it active. Be sure to determine what level of activity is necessary to keep the account active. If you have to make a small monthly purchase and pay it off every month or so it may be worth it to keep and older account open.
Is it Time for a New Business Credit Card?
The short answer is, maybe. If your credit is at a point where you can get better rates and incentives with a lower annual fee, then it is time to get a new card. If your credit limit on your old card can’t support your current or changing spending habits, it’s time for a new card. Lastly, if your business credit cards are on your personal credit report, it’s time to build business credit and get a new business credit card.
The post Time for a Change? 6 Reasons to Swap Your Old Card for a New Business Credit Card appeared first on Credit Suite.