Top Tips For Minority Owners of Small Businesses Financing Their Businesses With Small Business Credit Cards and Stocks

Small business credit cards give business owners easy access to a limited revolving line of credit plus a set daily credit limit to make transactions and take money out. Just like a consumer credit card, most small business credit cards carry an interest rate when the balance isn’t paid in full every month. The benefits to this type of financing are numerous including: flexibility with monthly payments, no annual fee, no finance charges, no trade-in value, and no credit limits. Here are five important advantages to small business finance programs offered by some of the nation’s top lenders.

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Top Tips For Minority Owners of Small Businesses Financing Their Businesses With Small Business Credit Cards and Stocks

Small business credit cards give business owners easy access to a limited revolving line of credit plus a set daily credit limit to make transactions and take money out. Just like a consumer credit card, most small business credit cards carry an interest rate when the balance isn’t paid in full every month. The benefits to this type of financing are numerous including: flexibility with monthly payments, no annual fee, no finance charges, no trade-in value, and no credit limits. Here are five important advantages to small business finance programs offered by some of the nation’s top lenders.

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Flexibility in accounts. Most small business credit cards feature a variety of financial programs for small business owners to use. Some programs allow you to keep funds in your account for as long as ninety days while others allow you to tap into your savings or checking account to fund your credit card. Depending on your personal preference, you may be able to find the best program for your business.

No finance charges. Credit cards often come with very high finance charges. While this can be good for the lender, small business owners can benefit from lower overall financing costs. In addition, by paying off small balances on time, business owners can build an excellent credit score that can be used in the future. This is one of the main advantages of a revolving line of credits versus a one-time payment credit cards.

Non-recourse programs. Many programs designed for small business owners to provide non-recourse funding options. These programs can help finance an emergency needs such as equipment, payroll, or marketing expenses. However, non-recourse financing requires the business owner to repay the full amount prior to obtaining any additional funding. By contrast, programs that allow small business owners to tap into a credit card’s available funds only require them to pay the minimum balance.

Easy application processes. There are many free programs available for small business owners who are applying for traditional loans. However, there are often cumbersome application processes that can discourage small business owners from applying. One of the most effective tips for minority-owned businesses is to apply for programs that make applying easy and hassle-free.

Flexible terms. The repayment terms for a small business owner’s small business loan or line of credit are often one of the deciding factors for approval. Some banks and lending institutions will only provide financial assistance for six months or less, while other programs may require the borrower to pay the entire amount as well as contribute toward any interest charges. Some programs also allow you to pay off your revolving line of credit in small increments.

Trading options. Even though most banks and lending institutions do not currently provide online trading capabilities, there are some sofi offers that do offer such functionality. Most online banks, credit unions, and lending institutions offer the ability to view real time stock quotes, which allows you to trade stocks online using an online trading account. In some cases, you may also be able to trade stocks using an online account that is linked to your local bank.

Trading platforms. Most professional traders prefer to have their transactions completed through a platform such as Metatrader. It allows complete control over transactions, which is important when conducting multiple trades throughout the day. Some traders prefer to have their transactions completed through an electronic platform, such as Forex, so they can monitor its progress directly. With the advances in mobile computing and wireless technology, traders can now use their mobile devices to access their trading accounts.

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