Getting Money For Your Business

A business line of credit gives a business owner available cash anytime they run short of funds. It can be used to purchase inventory, supplies, pay bills, meet payroll and as a general emergency fund.

A business line of credit is not a loan. It’s more of a “loan in waiting” as you only use it when you need it. The aspect that makes it better than a loan in the eyes of many business owners is that you do not have to pay interest on the money until you actually start dipping into the credit line. Plus, you only pay interest on the portion you actually use. It’s sort of like a financial safety blanket that keeps you from having to use higher interest vehicles such as business credit cards to meet your financial obligations.

The first place most businesses go to get a business line of credit is at the bank or credit union they use for their company checking, savings and investments. Simply ask to see a manager at the bank. Timing is important though. You may want to ask about it when your bank account has some measurable assets along with consistent deposits. This proves your company is making money and is financially sound. If you are a new company with little assets, be prepared to show your business plan to the bank before getting a business line of credit approved.

If you prefer not to use your existing banking institution, you can apply online for a line of credit. Many big banks offer credit lines from $25,000 to $100,000 to businesses right online. Rates are usually variable for this type of credit and are based on the current prime lending rate.

There are basically two types of credit lines, unsecured and secured. An unsecured line of credit means you don’t have to back it with collateral such as business assets. A secured line of credit usually requires some type of blanket lien on your business assets, investments or real estate. Obviously an unsecured line is preferable, but you need a solid credit score, business history and some assets in order to qualify for an unsecured line of credit.

When applying for a business line of credit, many banks will want to see that you’ve been in business for at least two years and they’ll want to look at your past two years business and personal tax returns. There are exceptions of course, but for the most part, lenders with less restrictions and requirements will have higher interest rates.

Once you start dipping into your credit line you’ll start paying interest on the part you’ve used. Many banks will automatically deduct your payments from your business account so be sure to ask if that’s their policy. If so, you’ll want to make sure you subtract payment amounts from your account so you don’t end up having to borrow even more when your account runs low. It can be a cycle that’s hard to break if your sales slow and you have lots of financial obligations to meet.

A business line of credit is worth applying for if money is tight and you don’t want to tap into your personal assets in an emergency. Just make sure you shop around for the best rates, rather than taking the first offer you see, especially online.

Networking With Fellow Business Owners In Your City

I used to think that networking with other business owners was a waste of time until I discovered the truth about business and marketing in general. The bottom line is that if you want to stay on top of the pile in your niche, you will have to stay on top of the marketplace. And one great way to do this is by networking with other business owners.

If you can hook up with fellow (not competitive) business owners in your city, I’m sure that a vast amount of ideas will come your way. Most business owners don’t mind sharing their ideas with you – especially if you’re sharing your ideas with them. The bottom line is that if you can find others to connect with, making more money in your business won’t be hard at all.

One great place to go out and meet fellow business owners is at your local chamber of commerce. You can do a lot at these meetings. You can share ideas, you can boost your credibility in the business community, and you can even sell “information products” to the members there.

What is an “information product”? Well an information product is simply a product that is full of information. Information products come in the form of books, reports, CD’s, DVD’s, newsletters, magazines, flash cards, seminars, and etc. This is a way to expand and take your business nationally – if you know what you are doing.

Imagine becoming a best-selling author with a book that you wrote. This is something that a lot of business owners have been doing a lot in the past, and are still doing till this day to further increase their sales and profits. If you want to have a huge impact in the marketplace, then I think you should consider selling your own information product.

I kind of got off track here but selling information products that you should consider. You never know… one of the business owners at your local chamber of commerce maybe already selling information products, and may have some insider knowledge on how to make it work for you.

You can even create a short 10-page information product about how to get more new customers to the members there. You should offer high quality information that your members will find useful and helpful. This is another great way to build credibility for your business. Plus, you can even charge around $15 for your product.

Networking with others is an excellent way to become profitable in your niche, and to gain and learn new ideas when it comes to earning more money in your business. If you don’t believe me, give it a try some time. You never know if whether or not it will work for you. But I’m almost certain that it will.

It all starts with you, and you wanting to take action. If you’re currently running advertising campaigns that aren’t working for you, try going to the chamber of commerce and have a fellow business owner look at your ads and marketing materials for you. They just may provide the advice you need to turn your business around.

Use these tips to have an immediate impact in your business today.

Good luck with using networking to improve your sales and profits.