Starting my new business was a difficult task, from payroll to inventory; much money was needed to survive and to help me thrive against my competition. Currently, there are many ways to secure funding for a new venture like mine as well as to gain money needed to expand or grow an existing company. Once you secure the capital to start or grow your business, you can execute your business plan in a manner that increases your overall wealth and stance in your industry or business community.

Business Funding Options For New Businesses and Start Ups

When considering places to tap for financing, banks and lending networks like Lending Club come to mind. Although there are many loans available for startups and existing businesses, they require good credit and much paperwork to obtain. Many also require that you pledge collateral (and many times, something of great value) in order to acquire financing with secured bank loans.

Unfortunately, many businesses aren’t able to meet several of these financing requirements, so they must turn to alternate forms of funding. Some entrepreneurs decide to take on credit card debt to operate their ventures. But a merchant cash advance is what I’ve used as a great option for my funding needs as these advances are easy to get and can be obtained by any business looking for capital that expects credit card sales. I paid my advance company back through revenue my business earned via credit card purchases. From my experience, I believe that retail and food businesses can obtain quick funding rather easily. The amounts I paid back were variable based on my sales for the month, so flexibility is one great advantage to a merchant cash advance.

Besides bank loans and merchant cash advances, there are also government programs that can help small business owners find sources of funding and can sometimes provide capital to businesses in some cases. Government grants are also available and these grants are free money to help fund business ventures. They are difficult to come by, but information can be found online about the government grants that are available for your situation.

While there were many options for funding my new business, each had its advantages and disadvantages. Depending on your credit and level of collateral, you can find the right loan to satisfy your capital needs to expand or start a new business in your town. With thorough research, you can assure your company’s well-being and overall prosperity.

 
This guest post is brought to you by Business Loan Option.

Business Funding Options For New Businesses and Start Ups is a post from: Banker, Saver

Want to be in the running for a $60,000 mortgage payout? You can be if you have a Wells Fargo mortgage as well as a Wells Fargo Online Banking account. If you aren’t yet a WF online banking customer, you should consider signing up. Once you have an online banking account, click on your mortgage account and you’ll be automatically entered into the $60,000 sweepstakes. Sounds good?

Wells Fargo Home Mortgage Sweepstakes Details

Here are a few notes about this giveaway:

1. You don’t need to purchase anything to join or win the sweepstakes.

2. The sweepstakes is only open to legal residents of the continental United States and who are WF Home Mortgage customers by 9/30/09.

3. You have to be 21 years or older to participate.

4. You are eligible to join even with a first mortgage loan originating on or before 9/30/09 and which has since transferred to Wells Fargo Home Mortgage by 10/22/09.

5. The sweepstakes will be open till 11/25/09.

The Prize! What Do You Get If You Win?

Here’s what the Wells Fargo page says about this:

What do you win? Winners will each receive the total amount of their respective Wells Fargo Home Mortgage payments for 12 consecutive months up to a maximum of $60,000 based on their 11/20/09 principal and interest payments.

The drawings will be held around 10/26/2009 (first drawing) and 12/11/2009 (second drawing). So entries that are received from 10/1/2009 up to 11/25/2009 may be eligible for this event.

For more information on this, check out this page.

Wells Fargo Home Mortgage Sweepstakes Worth $60,000 is a post from: Banker, Saver

This is a guest post by Mr Credit Card from AskMrCreditCard.com. Mr Credit Card has a credit card review site where you can apply for credit cards. Today, he is going to educate us on whether brand specific retail credit cards are worth getting.

When you head to a department store, whether it is a Sears, Best Buy or Victoria Secrets, chances are that when you check out and pay, the cashier will ask you if you want to get their “branded credit card”. You will be offered discounts for your first purchase! Many times, it is extremely tempting to go ahead and pick up such a card. But more often than not, getting these “branded” cards does not make sense. But first, let’s look at how they entice you.

The Benefits of Branded Retail Credit Cards

Reward Points – The branded cards allow you to earn points for every dollar that you spend on the card. Most of the time, you simply exchange points for gift cards which you can use at stores.

Discounts on First Purchase – This is what most people fall for. Let’s say you make a huge purchase; now the cashier will tell you that once you are approved, you’ll get 10% off. When the bill is $200, 10% off looks like a no brainer!

Free Shipping – Branded store cards (such as those by GAP and other similar retailers) offer free shipping when you use them. If you shop online and rack up a certain amount on these cards, you get free shipping. This is a helpful feature if you often buy stuff online.

Periodic Sales – Here’s another benefit of branded store cards: they offer occasional discounts to their card holders. This benefit is not available to anyone else.

Periodic Financing Deals – Aside from discounts, some store cards will give periodic attractive financing terms (sometimes 0% APR) to card holders if they buy stuff above a certain amount by a certain date. These promotions are popular with some folks.

Will Accept Folks With Bad Credit – There are two types of branded retail cards. The first type is a store card that can only be used at that retail store. It is not a Visa or MasterCard. The second type is a branded store card that is issued as a Visa or MasterCard. The non-Visa or Mastercard store cards are popular with people with poor credit history and folks who have just come out of bankruptcy. This is because it is relatively easy to get approval for these cards.

The Disadvantages of Branded Retail Cards

High Interest Rates – Most of these cards have high interest rates. The APR for these cards won’t be in the single digits. In fact, Home Depot mentions on their site that only half of the applicants of their Home Depot credit card get an APR of less than 25.99%!

No real benefit to use outside their stores – If you have a store card, you can only use it at that particular store. If you have their Visa or MasterCard, these cards are pretty much redundant with other cards that you may already carry. So what other use do these cards serve? It’s often the case that many folks get many store cards needlessly.

Their rewards are available in other programs – The biggest argument against store cards is that you do not need such a card to get special perks. Most of the retailers and hotel chains that offer branded cards are guilty of robbing their own cards of their exclusivity. Let’s look at a few examples:

Marriott Hotel has a credit card which is co-branded with Chase. But most credit card rewards programs already allow you to earn and redeem points for visits and stays at Marriott Hotels! Another example is the Best Buy credit card, which allows you to earn 4% rebates when you use this card at Best Buy stores. But by using the Discover Card instead, you’ll earn 5% rebates when you shop at BestBuy.com!

Another example is the Sears credit card. You can earn double points if you have the card and enroll in the Sears Choice Rewards Select Membership program. But this costs $25 annually. With the no annual fee Discover Card, you earn 5% cash back for shopping at Sears.com!

So these are just a few examples of branded retail cards that have become redundant because their issuers have robbed the exclusivity of these cards by partnering with other credit card programs!

Should You Get Branded Retail Credit Cards?

More often than not, the answer is no. But there are some exceptions. For example, I know someone who’s been visiting Disneyland annually for the last 10 years. His family just loves it! So someone like this may benefit from carrying a Disney card. But even if you shop frequently at a store (say Sears), it’ll be hard to justify spending enough to earn the rewards from this card. Because you can earn cash rebates from so many other credit cards, it simply does not make sense to get store cards.

But what if you have poor credit or have just come out of bankruptcy, and are looking for a card? Many retail stores will be happy to issue you their store cards. But you’ll have the inconvenience of only being able to use them exclusively at their store. A better alternative for you may be to pick up a secured credit card.

Should You Get Branded Retail Credit Cards? is a post from: Banker, Saver

You finally received your auto loan financing. So what’s next in the life of a car owner? Why wondering how to get car insurance, of course!

It really never ends, does it? The list of things we really need to get educated about seems endless. With every purchase or change comes a new inventory of things to understand and make decisions about.

With an auto purchase comes the questions surrounding car insurance. It’s something we’re required to have, by law: once you become a car owner, you’ll need to get car insurance as well. This is one time we can’t bury our heads in the sand and just not buy. Unlike the extended warranty on my laptop, car insurance is a necessity.

We all should know how auto insurance works and how to deal with insurance companies. I have gathered up some quick facts about auto insurance and hope they help you before you buy.

Car Insurance Guide

Here are a few common questions most people have about their car insurance:

1. Why is car insurance required?

Different laws on coverage can apply based on the state you reside and drive in. However, we’re still all required to have and show proof that we have car insurance before we can drive. Auto insurance is necessary as a way to protect us from any kind of liability (legal or financial) if we ever do get into an accident.

2. What kind of coverage can you expect to have?

Car insurance typically includes three coverage areas that aim to give us protection from liability and loss:

• Medical coverage: This type of coverage covers your medical bills and treatment, and may extend to covering your any work pay that you lose or even funeral costs that may stem from an accident.
• Property coverage: Any losses you experience from theft or damage to your vehicle may be covered through this clause.
• Liability coverage: Damages or injury that occurs to anyone else due to an accident you are involved in (or may have caused) may be covered through this clause.

3. How are your auto insurance rates set?

In order to set your insurance rate, your insurer looks at several things: your age, your vehicle’s make and model, your driving record, what type of driving you do, where you drive, how you maintain your car, where your car is located, and surprisingly, even your credit history.

4. Why do insurance rates vary across different companies?

You may be surprised to find that depending on the insurer you approach, you can receive different quotes for auto insurance rates. This is because each insurer’s rates are based on the history of claims made to their outfit and can also depend on their business and operational costs. It is therefore advisable that you shop around and ask for quotes from many car insurance companies in order to compare rates and so that you can make the right choice for your needs.

5. What can you do to keep your auto insurance rates down?

• The cleaner your driving record, the lower your rates.
• You can get discounts by being a good driver, by installing anti-theft mechanisms in your car, having a fuel efficient car, having multiple cars with the same issuer and being a loyal customer. Speak to your issuer about what discounts you are eligible for.
• Get a policy that allows you to have a higher deductible. This would mean that you’ll pay more out of pocket, but your premiums will be cheaper.
• Pick safer cars to drive.
• Trim your coverage to only what’s necessary. Many people have more than they need in coverage and they’d be able to lower their rates by simply dropping the unnecessary extras.
• Shop around and compare policies across different issuers. Get quotes from different insurance companies to get a sense for how much the policies cost.

6. Who can cancel my insurance policy?

Well, aside from yourself, you may be surprised to learn that your insurance company can actually cancel your insurance policy under certain conditions. They can cancel your coverage if you are unable to pay your premium or if you lose your driver’s license. The consolation here is that they are required by law to give you a heads up before they yank your insurance from you. You’ll receive at least 30 days notice plus any refunds due you if you’ve paid your premium in advance.

Selecting an Auto Insurance Company

Selecting an auto insurance carrier is not always an easy thing to do. Some research on an auto insurance company can really pay off in the long run. You may need your insurance company at a time when you are vulnerable, physically and financially. To help consumers out, many companies — such as A.M. Best and Moody’s Investor Services — rate insurance carriers.

The insurance company’s customer service and satisfaction rating will be key in any decision. You can check a car insurance company’s customer service record by calling your state department of insurance and the Better Business Bureau (BBB). Ask around and check with your coworkers, friends and family. Find out what auto insurance companies they are using and what type of service they have encountered with those companies.

What Car Insurance Should You Get?

There are many options for buying car insurance in this day and age. You can buy a policy online, over the phone, or face to face by using an agent. Some people are comfortable purchasing insurance over the Internet or over the phone, and some would prefer to have a local insurance agent they can meet with in person. Decide which method suits you best, and make sure your insurer of choice can accommodate your style and needs.

Price may be your number one concern when purchasing car insurance. While this is understandable, you should always make sure to get a policy that meets your insurance needs. To find the best price on your auto insurance, comparison shop and get quotes from multiple insurance carriers. As with any major purchase, compare policy features and coverage as well as price. While features may differ slightly, try to compare “apples to apples”. Understand exactly what you are insuring and what you are getting for that price.

Want To Get Car Insurance? Here’s An Auto Insurance Guide is a post from: Banker, Saver

Saving money is tough, especially when finances are tight and disposable income is at a minimum. For all of the recently laid off workers — employees of the state whose hours have been cut and other economically distressed individuals — that “rainy day” has arrived and I bet they all wish they had a larger emergency fund to draw from. Many families have gone from two incomes to one, creating a strain on the household finances. So what are some money saving ideas we can employ during a time like this?

Money Saving Strategies During Hard Times

1. Automate your savings.
The important thing to do is start small; make a plan and stick to it. Most banks offer an automatic monthly or weekly transfer from a checking account to a high yield savings account. This will force you to save money and in most cases it comes with the added benefit of a free savings account. “Keep The Change” from Bank of America is another popular automatic saving program that rounds up debit card purchases to the nearest dollar and deposits that remainder into a savings account.

2. Save your extra change.
Trying times like these call for creativity when it comes to money management. One easy way to start an emergency cash fund at home is with a technique I like to call “Give Me Five”. Whenever you make a cash purchase and you get one or more 5 dollar bills as change, tuck those away in a designated envelope and do not spend them no matter how tempting it might be.

3. Take advantage of low stock prices.
A struggling economy does have its advantages from an investor’s standpoint: just think of the opportunities that a downturn can present us. A lot of things of value may now be cheaper in price — for example, discounted stocks. Transferring funds from a low yield savings account to an online stock trading service can be a smart strategy and a great way to make your savings grow more rapidly. You will sacrifice some liquidity but you will increase you earning potential if you choose winning stocks. Save yourself expensive broker fees and account management costs by handling your portfolio yourself. There are plenty of stock trading tools online to help you make informed decisions about your investments, so be smart and turn your savings into income.

 
This guest post is brought to you by the folks behind Planet Wealth.

Money Saving Strategies During Hard Times is a post from: Banker, Saver

Time for me to see what’s going on in the blogosphere. Here were some posts that I thought you may appreciate from around the net:

At the BillShrink blog, this informative post that talks about one blogger’s lessons learned as a long time investor can prove helpful in today’s investing climate.

This Wise Bread article on extreme saving caught my eye! I have tried a few crazy money saving ideas before, but some of these are certainly outrageous. Dumpster diving, anyone?

Lazy Man and Money is a blogger I’ve admired for some time now, even way before I started this blog. He has captivating stories, one of which has even hit the Consumerist! Find out more about his tiff with Monavie and what he’s doing about it.

I’ve also been participating in carnivals lately. If you have time, do take a look at these collection of personal finance articles from where you’ll find timely money advice:

• Carnival of Personal Finance at Taking Charge
• Carnival of Pecuniary Delights at Pecuniarities
• Carnival of Pecuniary Delights at Almost Frugal
• Money Hacks Carnival at Cash Money Life
• Carnival of Money Hackers at Four Pillars
• Debt Reduction Carnival at Christian PF
• Carnival of Twenty Something Finances at How I Save Money
• Carnival of Personal Finance at Simply Forties

Thank you to the hosts for featuring my posts! I hope you like the roundup this week.

Investing Lessons, Trademark Issues, Extreme Frugality is a post from: Banker, Saver

I learned a few things by reading this interesting article in the New York Times about green banks. These banks aim to help out green (eg. eco-friendly) causes by providing them more attractive banking incentives and loan rates. That is, people and companies that are labeled as environmentally friendly are given financial breaks by these banks.

The Challenges That Green Banks Face

While I think these banks support wonderful causes, they do face a lot of challenges as for-profit entities. Just like those socially conscious and environmental mutual funds, they are expected to encounter more obstacles than your typical run-of-the-mill bank. So what are some of these issues that green banks may have to deal with?

• Diversification matters. Green banks will be screening their customers and naturally, they’ll be limiting and restricting their business to those entities that qualify. With a smaller pool of customers, they’ll automatically have a smaller profit base to support them. If they focus their loans on certain industries, they open themselves up to being much more vulnerable to economic shifts.
• These banks are still startups. Apparently, it takes 3 to 4 years for a typical bank to start making money. Many green banks in business today are very new and are still in startup mode. It doesn’t help that these banks are trying to get their footing during a recession.
• Banks are “specialized”. Again, while the main goal of a green bank is to do good by supporting those who are taking care of the environment, the question here is — just how much money is there in these businesses and in the eco-friendly industry? Saving the environment does not necessarily equate to “making a profit”. Hopefully though, this premise is proven wrong in this case and that green banks prove that they can survive, even as they face restrictive requirements for doing business.
• Operating expenses and costs are higher. Green banks require specialized talent, skills and expertise as well, due to the kind of customers they are servicing. Employees, such as loan officers, need to have additional background and experience in dealing with green businesses and consumers. Plus, giving breaks to such clients via discounted loan rates can eat at their profit margins.

List of Green Banks

If you’re interested in checking out green banks that are in operation right now, here is a list!

• e3Bank in Philadelphia, Pennsylvania
• First Green Bank in Florida
• GreenChoice Bank in Chicago
• ShoreBank Pacific in Houston
• Green Bank in Houston
• New Resource Bank in San Francisco

I appreciate the highly specialized, noble missions that are espoused by these green banks, but are they viable businesses? We’ll have to see how this particular segment of the financial industry develops over time.

Green Banks: Helping Businesses Save The Environment is a post from: Banker, Saver

It’s very easy to get overwhelmed with debt these days. Credit cards. Personal loans. Mortgage refinancing. Store financing. The opportunities for getting credit are seemingly endless!

And once the debt starts building up, it’s hard to stop. High interest rates can cause your debt to multiply faster than you can make payments. So, how do you know when it’s time to get help, and take action — so you don’t end up way over your head in credit card debt?

Your Credit Card Debt: 5 Warning Signs It’s Out of Control

Here are 5 warning signs that your credit card debt is out of control:

1) You need to keep getting more credit cards to make ends meet. If you reach this point, realize that you’re spending money that you don’t have. So you need to find a way to make more money. And you need to find ways to cut your expenses. And if this doesn’t get you back on track, then it’s time to get help.

2) Your interest rates are mostly (or all) over 20%. This is a sure sign that you’ve missed some payments. With interest rates this high, there’s no way you’ll ever make any real progress in paying off your bills. So call your creditors, and ask them to lower your interest rates. If they won’t, then focus on making your payments on time for 3-6 months, and ask again. Note that lower personal loan rates do exist, and may be something to look into if you are ever considering debt consolidation as an option out of your predicament.

3) You are losing hope and don’t know what to do. Struggling with debt is stressful and discouraging. You need to do everything in your power to make a commitment to getting out of debt, and start taking action. Letting the problem linger will only make you more miserable. No matter how bad your situation looks, it won’t get better if you don’t try to make it better.

4) You don’t know how much you owe. Be honest, if you don’t know how much you owe, how can you ever hope to get out of debt? You don’t need to know the amount to the last penny, but you should know at least a “ballpark” estimate. Knowing won’t make life easier, but not knowing is like hiding from the truth. And you can’t deal with the truth if you don’t know what it is.

5) The creditors are calling you regularly. Nobody likes to get these calls. But the absolute worst thing you can do is ignore them. If you can pay anything, no matter how small, answer the phone and tell the creditor how much you can afford. If they can’t help you, or you truly can’t afford to pay anything, then you need professional help.

 
Kris Bickell is the owner of www.Debt-Tips.com. If you’re having trouble paying your bills, find out if credit card debt negotiation is the right debt reduction strategy for your situation.

Your Credit Card Debt: 5 Warning Signs It’s Out of Control is a post from: Banker, Saver

Sick of sneaky bank fees and extra charges? Here’s my own personal story on how I deal with these charges.

Tonight after work, I stopped by my neighborhood grocery store and picked up some items for dinner. I got into the checkout line and swiped my debit card with the confidence that comes from knowing I have money in my checking account to cover the purchase. A no brainer, right? Yes, but there have been times when I did not have this confidence because I was buying something at a bad time — either right before payday when I wasn’t sure I would have the money in my account that night (I notoriously don’t balance my checkbook) or when I knew for sure I didn’t have the money in my account, but used my debit card anyway, holding my breath that maybe the charge wouldn’t go through until the following day. I have paid the piper many times by not being careful with my debit card, racking up overdraft fees sometimes as high as $200-$300 a night.

The Trouble With Bank Overdraft Fees

Why I get charged overdraft fees. This is stupid, I know. How difficult can it be to manage your money? I have gotten into more trouble with overdraft charges than I care to admit. I perpetually make mistakes: I don’t balance my checkbook; I misjudge how much money I have in my account; I have the Scarlett O’Hara syndrome (I’ll think about it tomorrow); and I have chronic “busyness.” I am always on the run, I take too much on, and sometimes I forget to think about money and my checking account. There have been many times, particularly when I was in law school, when I could have transferred money into my checking account and prevented overdrafts, but I didn’t have time to think about money, let alone transfer it.

What banks do to vulnerable customers. There is no doubt I am responsible for my money and the overdraft charges I accrue. But banks contribute to my problem as well: They make it easier for me to mess up, and they profit from me when I do. Every night, they send through the highest charge first. That surprises people. But if you have $200 in the bank, and that day you made purchases of $110, $65, $25, $12, and $10 (for example), they will send the $110 purchase through first, causing you two overdrafts on the $12 and $10 purchases.

Had they done it the other way around, sending the smaller purchases through first, you would have only had one overdraft on the $110 purchase. Sneaky huh? I have had multiple discussions with my bank about this, and they claim their customers want the highest purchases to go through first, because they are usually the most important, and they want to make sure those are paid. Huh? Nice excuse! In most cases, the banks are going to honor your transactions anyway (the amount of the purchase and the overdraft charges come out of your next deposit). And I don’t think customers, including me, want more overdraft fees than necessary. At $27-$39 each, they do major damage. More and more banks are now also charging what they call “sustained overdraft” fees, which can be another $30-$35, when the initial overdraft is not paid back within a few days.

How To Escape Bank Overdraft Fees Minus The Overdraft Protection

What can you do about this? Here is a list of things I’ve done to escape the bank overdraft fees:

1. Keep up with your money and use your debit card sparingly.

2. Check your online balance everyday and make sure you know what items are pending to come out that night. If you see you will be short, you can deposit money into your account that day.

3. Make sure you remember what time of the month the charge will hit your account, if you are signing up for something that will be billed monthly.

4. Have a buffer. You can also keep some extra money in your checking account — $200-$300 — to serve as a buffer against forgotten or unexpected debit charges. If you are buying gas or renting a hotel room or rental car, be aware that a hold may be placed on your account for a while, and plan accordingly to avoid getting overdraft fees.

Some recent surveys have shown that people would like to have a choice about whether they get this overdraft protection or not; it would be great for consumers to be notified at the point of purchase that they are about to go into overdraft. The Consumer Federation of America supports the creation of a Consumer Financial Protection Agency to advocate for these kinds of issues. Such an agency would aim to bring a couple of bills to the forefront, which would allow consumers control over overdraft fees and would extend the 36 percent interest rate cap (that armed service members already enjoy) to everyone.

Escape Bank Overdraft Fees Without Overdraft Protection is a post from: Banker, Saver

I’ve been ultra busy lately, but I finally got a chance to sit down and visit some great financial blogs. Here were some articles on money management and finance that caught my eye recently.

Milking The Dollar: Want to save big with Bing.com? I haven’t heard about this till I read this article about their cash back program! If you want to know how you could get money back using Bing, then this is where to start.

Debt Loans: What are self managed super funds? There’s some work in setting up such a fund, but it’s worth exploring if it’s right for you.

Recession Proof Living: Here are some justifications for needing a public option for health insurance. I wholeheartedly agree with this article. Our health care industry has been failing a lot of us and having had my fair share of medical visits, I realize just how unreasonable costs are becoming in this area. Can’t we look at our northern neighbors to see how they manage their successful health care programs?

One Mint: Love your iPhone? Love Kindle? Well here’s something you may like: a Kindle App on the iPhone! Now you can actually get your Kindle reading done on your iPhone, making things more convenient. Best part of it is that it’s free!

Financial Organizing: This woke up my taste buds! How does California Peach Chutney sound? Here’s a nice post about canning peaches for a Christmas fund raising event at a local church.

For more great posts, please visit these carnivals:

• Carnival of Money Stories
• Carnival of Pecuniary Delights
• Festival of Frugality
• Carnival of Personal Finance

Get Cash Back With Bing, Health Insurance Options, iPhone Kindle App is a post from: Banker, Saver