The United States Prime Rate website has issued a press release discussing the status of small business credit cards. The press release mentions how small business credit cards are changing given recent the financial reform legislation which worked its way through congress ans was recently signed by President Obama as well as the recent wave of bank foreclosures.

Here’s the press release:

PHILADEPLHIA, PA–(Marketwire – July 15, 2010) –  The United States Prime Rate website at www.FedPrimeRate.com is now recommending small business credit cards on offer in the American market.

“We’re really glad to see business credit cards coming back,” said Steve Brown, content manager at FedPrimeRate.com. ”Small business owners all across America have been struggling to get access to loans as banks continue to hoard cash. Though the American economy is growing again, the banking sector is still hurting, with many banks still facing closure by the FDIC.”

To date, the Federal Deposit Insurance Corporation (FDIC) has closed 90 banks in 2010, which, so far, is a faster pace of bank closures when compared to 2009. Between the beginning of 2009 and July 17, 2009, the FDIC closed 57 banks. The FDIC closed a total of 139 banks during all of 2009. Another troubling fact: unnumbered banks across the country are defaulting on their TARP payments.

“We like the new Ink line of business credit cards from Chase because they offer great rates, reasonable terms and conditions, and they have a very strong bank behind them,” continued Brown. ”Chase is on an extremely short list of banks that emerged from the banking crisis virtually unscathed. We believe that a bank as strong and responsible as Chase has the financial strength and corporate culture necessary to provide some of the most consumer and business-owner friendly credit products around.”

Many factors have contributed to banks scaling back on lending to small businesses. Since the subprime mortgage-inspired financial crisis unfolded two years ago, banks have had to operate within a powerfully negative economic environment: a severe banking crisis, a devastating recession, rising unemployment and defaults, disinflation and the very real threat of deflation. As a result, the credit card industry contracted sharply. Another major factor: the market for credit-card receivables completely dried up. During the credit boom years, banks would bundle up all kinds of credit-card debt, including business-credit card debt, and sell this debt to investors on Wall Street — very similar to the way mortgages were packaged and sold to investors. Credit-card securitization contributed much to the ready flow of credit to all types of consumers and businesses, as banks were more than happy to pass the risk associated with unsecured debt onto Wall Street. However, the fate of this market was to become another domino felled by one of the many financial shockwaves created by the subprime-mortgage crisis. Business credit cards became so risky and unprofitable for banks that many business card accounts were either closed or had their credit lines severely limited.

Advanta, a company that specialized in small business credit cards, closed all of its card accounts on May 30, 2009. Advanta Corporation filed for bankruptcy relief in November, 2009. The FDIC closed Advanta Bank Corporation in March of 2010.

Chase emerged from the global banking crisis and subsequent Great Recession as one of America’s strongest and most resilient banks.

“Have you seen how complicated it is to get a Small Business Administration loan?” quipped Brown. ”Business credit cards are not just a great way to get quick and easy access to short-term financing. Small businesses owners can benefit from the rewards programs that come with many business cards, and they can also stay more organized with monthly and yearly expense reports that many business credit card issuers provide. A business credit card also helps a business build its credit rating, making it more likely to get approved for a traditional bank loan in the future.”

The typical small business owner who uses a business credit card for short-term financing is a responsible borrower. According to the Federal Reserve, less than 20% of small business credit card holders carry a balance.

About FedPrimeRate.com
The website at FedPrimeRate.com is the Internet’s premier information space dedicated to interest rates and finance.

The unemployment rate is higher than it’s been in more than 26 years. If you’re not already laid off, you may be concerned that your job isn’t as stable as you’d like. Most of the time, you can’t prevent being laid off, but there are some things you can do after you get laid off to help you until you find a new job:

Don’t Burn Bridges

You’re probably going to be angry or upset if you lose your job. The stress can sometimes cause people to freak out and maybe even fight or yell with their boss. Don’t burn bridges with your employer – they will be giving you references when you apply for new jobs and you want them to remain on your side. There’s always a possibility circumstances will change and your employer could bring you back to work, too, but you can be sure that won’t happen if you cause a scene when you’re laid off.

File for Unemployment Benefits

Even if you think you won’t be unemployed for long, make sure you file for unemployment benefits. Usually you can do this online or by phone. File as soon as you are laid off, since receiving benefits can take several weeks. If you happen to land a new job before then, even better.

Prepare Your Resume

Make sure your resume is updated to include the skills and experience you’ve gained from your most recent employer. Update the entire resume as it is the key to getting interviews with potential new employers. Make sure it’s a reflection of who you are as a person and your abilities as an employee.

Apply for New Work

Don’t just sit back and collect unemployment, hoping someone will come to you with a job offer. The increased number of people unemployed means higher competition for every job opening. Start applying. Use job search sites like careerbuilder.com, and your local newspaper. Apply to anything you are qualified to do. If there are particular companies you would like to work for, check their website to see if they have any job openings advertised on it. Many times, they will list job openings on their website long before they advertise them on job search sites or the newspaper, so you increase your chances of being hired if you apply to them early.
Reduce Living Expenses

Even with unemployment pay, you’ll want to make every effort to reduce your living expenses until you are employed again. Turn off or reduce your cable television package, avoid eating in restaurants or getting take out, avoid using credit cards or taking on new debt. The more you do to live within your means, the better you’ll be once you’re employed again.

Do you accept credit cards? Do you receive a large percentage of revenue from processing credit cards? I am sure most small business owners would say yes to the first question. The second answer would depend on the type of business you run, but most owners will say that a large portion of their revenue comes from credit cards. It is always good to be up to date with every part of your business, especially when it could lead to more sales and revenue. I recognized this early on with my retail business.

The following will illustrate the credit card processing solutions for different types of businesses:

E-Commerce

If you sell any type of good or service over the internet, it is imperative that you accept credit cards. If you do not accept credit cards on your website, you will not be able to grow your business, or the business could fail. The e-commerce world is ultra-competitive, so you need to do everything you can to make payments convenient for your customers.

There are two types of internet merchant accounts: virtual terminal and weblink gateway. The virtual terminal is a good fit for businesses that have low volumes of sales on a daily basis. An administrator on the business’s side will manually verify credit card information and process orders that have come in through the website. The weblink gateway is more suited to business that have more financial resources and higher volumes of sales every day. Credit card information from each online order is automatically verified, thus making the fulfillment process shorter.

E-commerce businesses must deal with fraud related to credit cards, and this sector has been hit hard with chargebacks. Internet merchant account fees are typically higher than other types of accounts, since the provider is taking a higher risk on the possibility of fraud.

Brick and Mortar Businesses

Any type of physically located business most likely performs credit card processing. If they don’t, they are stunting their own growth. You could easily increase your total revenue by 20% by accepting credit cards. It’s not that you will see an increase in quantity of sales, but you will see an increase in the amount of revenue per sale. Studies have shown that customers spend more per purchase when using a credit card. Personally, I used a company called North American Bancard for my retail business’s credit card processing. The revenue per sale increased by about 30% when I started accepting credit cards in the mid-1990’s. I would definitely recommend this company for providing retail merchant accounts.

Contractors and Outside-Sales-Oriented Businesses

Wireless merchant accounts are the latest technological advancement in the credit card processing industry. These types of accounts process credit cards with a terminal that swipes credit cards and processes the financial information through a wireless connection. It creates a competitive advantage for people who deliver their goods and services to customers’ homes or businesses. Instead of invoicing, they accept payment on the spot, and the transaction is done. This also can improve your cash flow, since the accounts receivable turn over should, in theory, decrease, allowing more cash to flow into your bank account.

Conclusion

Hopefully you learned something new from this post. And if you did, I am happy to say that I did my job. Just remember to do your research and ask a potential account provider many, many questions.

Most small business owners that want to make a name for their company will make use of promotional products at sometime during the lifetime of their business to build brand and company awareness, but are promo items effective?

It depends on what they are and how you hand them out. Everyone has a pen from just about every local company sitting in a container somewhere, but that doesn’t mean that they are thinking about you. The best way to be successful with promotional products, like the ones from Paragon Promotions, is to make highly visible promotional products such as T-shirts and other clothing items. People like free shirts. Some of them might end up at Goodwill, but others will become walking billboards for your company.

You also have to keep costs down. Promotional products can turn into a huge marketing expense if you let them, but company-branded items have really become a commodity product. If you shop around and get prices from several vendors, you will generally get about the same quality of material regardless of who you go with, but what you pay can vary dramatically from company to company ,so make sure to shop around before placing an order.

If you are interested in learning more about promotional products, click here to read more.

There are many factors that affect your ability to start your own business but one of the biggest factors of them all is usually financial. Having enough financial security to get started is particularly important because it may be a while until your business is able to support itself or you.

What financial concerns should you be addressing before starting a business? Here are a few tips to help you get started and help to ensure that now is the right time to become your own boss:

Check Your Cash Flow

 If you are living paycheck to paycheck with no savings and ongoing expenses, it may be hard to open a new business full time. If your credit is not good and you are struggling financially, it may make sense to start up part time and grow a bit before giving a full commitment. It can take several months to several years to turn a profit and if you are relying too heavily on profits, your business will go under fast.

Contact Your State Government Office

Depending on the type of business you wish to pursue, there may be licensing and eligibility issues in your state. Find out what paperwork needs to be filed, what fees need to be paid, and collect information about local and state taxes. You may also need to speak with local government officials about zoning regulations and licensing regarding your business.

Speak With An Accountant

 It is likely you will need accounting and tax assistance if you are new to the self-employment/new business arena. Research reputable companies in your area and set up an interview to see which company suits your needs the best. During the initial consultation, you can go over some of the financial questions or concerns you may be having about starting a new business.

Speak To Your Insurance Company

If you plan to run a business from your home, there may be insurance concerns. Depending on the kind of business you are looking to open, you may have to purchase and provide different types of insurance policies like liability insurance and workers compensation.

Separate Business from Personal

Even if your business is entirely dependent upon your own financial resources, it is important to start separating business from personal when it comes to your accounting. You need to keep accurate records to ensure you know how much you are contributing to the business. You also need to build up the credit history of the business by applying for credit under the business name.

Those who have found themselves out of a job and in need of income often look for anything that they can find from a job standpoint to bring in money. That is not a bad thing to do when money is scarce and bills are going unpaid.

However, if you are in a position to be able to consider this, it might be a good time to make a career change. Many people who feel trapped in their current career positions, may never make the effort to try something that they would rather do. But, as long as your financial situation is stable, this could be the best time to try.

Prepare Financially

Before considering such a move, examine the financial implications. If you will be experiencing a drop in income because of your choice, then you should have enough money set aside to finance your venture for a period of time. This will help you be able to give it a go without having to worry about money for expenses. Avoid raiding your 401k or other retirement funds.

Eyes Wide Open

Be sure that you set realistic expectations for yourself in your new career. You cannot expect to be at the top earning level when you just start out so, watching for opportunities to advance as openings come up. Or, if you are not able to advance because of the type of career, then set expectations accordingly. If you are taking a severe cut in pay, you might have to take a part-time job to make up the short fall. And, a reduction in expenses can help, too.

Give Yourself Time

Set a realistic time-frame to make the new career work. Success does not happen overnight but you should not continue to drag out your attempt if there are clear signs that it isn’t going to work. Add to this the realization that economic forces sometimes have an influence on business success.

Obtain Advice

People who consider career changes are wise when they seek the advice and input from those who are already in the positions that they are seeking. If you can find a mentor or one who is willing to give you instruction on what to do and how to do it, then your chances for success will be greatly increased.

No Regrets

Whether you fail or whether you are a success, determine that you will have no regrets in your decision.

If you have been fearing the worst at your job or maybe even lost your job in this troubled economy, you might want to make an investment in your future now. The job market all over isn’t so great and chances of finding a new job after losing your old one may be getting slimmer each day. If you have been looking and still remain unemployed, you might need to think about changing tactics.

Investing in your future now may give you a leg up on the competition in the job market, especially a tough job market. Research shows the recent enrollment in graduate programs are on the rise as more people are understanding the need to learn more to earn more. While it may be difficult to finance your further education goals while you are not working, the investment you make in yourself will reward you in the end. There are options for you to return to school, even in a bad economy, you just have to be proactive about finding out about all the choices you have.

Visit the Prospective School Counselor
If you have an idea of what school you would like to attend, visit the school and find out what options you have for financing your education. The financial aid or enrollment department should be able to answer your questions and may even be able to provide you information about local financing opportunities you may not have known about otherwise.

Explore Your Options
There are many ways to pay for school. Here are a few of the choices you might have to finance your education goals:

Subsidized/Private Student Loans – since you are unemployed, you may qualify for many more student loans programs than if you were working full time. Many older adults won’t qualify for federal loans but returning students may be eligible for a $2500 tax credit based on expenses related to their pursuit of higher education.

Find a Part time Job – since many graduate school programs take a year or more, you might need to take a part time job to help pay the bills while you finish school.

Back-to-School Scholarships/Grants – there may be some programs in your area for people who are returning back to school after a long hiatus. Check with your local resources and on the internet for scholarships and grants for people in your positions.

Learn Online – there are many programs online that are less-expensive and more convenient for those with busy lives and families.

Go Part Time – to make your costs a bit easier, check with the schools of your choice to find out about the options for going only part time, taking a few classes at a time to make it more affordable, even if it takes longer to get through school.

Consider going back to school to advance your current skills or to even change your total career direction. Despite the bad economy, there are still many industry that are thriving during the economic struggles of the nation. Discover the different programs that will help prepare you for a total career makeover and don’t be afraid to pursue the career path you always wanted.

While some people are just happy enough these days to get a decent new job, there are many more of individuals who need a new job but can not afford to take one without a proper salary to go with it. Especially during these tough economic times when layoffs are frequent and the job market it tough, there may be times when you are essentially receiving a salary that is just way too low for the job.

If you are approached by a potential employer with the opportunity for a good job but a not-so-great salary offer, there are some tactics you can try to up the ante so you don’t have to miss out on a good job. Try some of the following moves and see if it helps you get the money you need to survive financially without insulting anyone involved in the process:

Talk About Salary Upfront
If it all possible, broach the topic of salary should you be called back for a second interview. If you are unable to come to terms on the subject of money then you can walk away without having to invest much of your time or effort into working a job that is not worthy of your talents.

Be Honest with Human Resources
If you get a call back and a salary offer that is much too low, approach the hiring manager and be appreciative of the offer. Mention your enthusiasm over the potential job but that you don’t feel the salary is commiserate with experience in your case. Provide them with a salary range you are willing to accept and even inquire if other positions in that range are available. You may not get far but it definitely be worth your time, effort and honestly.

Suggest Alternative Arrangements
If you are really digging the potential job, perhaps you can inquire about taking on the position in a part-time capacity to prove your worth. Some employers will not be flexible about hours, duties or salaries. If you there are no alternatives worth pursuing, bid adieu and get back to networking.

The one thing you want to remember is to not burn any bridges or insult any one that may be a potential lifeline in the future for you. There is also a good possibility that the candidates left or the one subsequently hired will not fit the bill and your resume may get revisited. Be polite and gracious when refusing a job offer. Alternately, if your salary negotiations do work in your favor, be sure to thank your new employer and prove your worth to the company.

You may feel your salary can be flexible just to get a good job but there is no reason you need to accept a lowball offer without trying for better. It is your income that pays your bills and you must consider before even an interview how much you are willing to take and how much you really need to be making to do more than survive week to week, otherwise you are subjecting yourself to debt problems and personal finances troubles instead of focusing on your new job.

If you’re looking to start your own business, you really need to know what you’re getting into. It’s hard work and you’ll be the hardest boss that you’ve ever worked for. CNBC recently went inside of two start-up businesses and got an inside view of what it takes. Here’s CNBC’s “The Entrepreneurs?

Financial Aid.  Financial aid basically is found in grants and federal subsidy programs.  Information on these can be found in the admissions office of colleges and universities around the country.

Student Loans.  Stafford loans are available to students to help pay for their college related expenses and are federally backed loan programs.  These are low-interest and deferred plans that give students a way to finance their education and not have to begin the payment process until after they graduate.

Bank Loans for College.  Parents can take out loans specifically set up for their college-bound students.  These loans are commercial in nature, but offer good rates and terms for repayment.  Satisfactory credit ratings apply to these loans which might keep some out of these plans.

Scholarships.  There are a myriad of scholarships available.  Checking with the admissions office is a good start to see what programs they have available.  But also, a good exercise would be to check the Internet for scholarships that are independent of a specific school.  Some are community based and can be accessed by checking with local business organizations in your area.

Employer-based reimbursement programs.  Some companies provide 100% reimbursement of tuition upon the successful completion of a semester with passing grades.  While you have to front the money when you sign up for classes, you can get your money back at the end when your final grades are published.  Even if your company does not pay 100%, any percentage is better than shouldering the full amount on your own.  If you are pursuing a health science related field, you will find many hospitals and medical businesses that are willing to help financially while you work with them or sign a commitment to work for them fulltime for several years after you graduate.

Tax Relief.  There is tax relief available for higher education expenses offered in the recently signed economic stimulus bill.  The American Opportunity Tax Credit is worth up to $2,500 for tuition paid out in 2009.  This credit is also available in 2010 as well.  The restriction is that the student cannot be past the first four years of post-secondary education.

Old-fashioned way.  Many students still find it necessary to work their way through college.  It makes for a very busy life, but in the end result provides a very fulfilling pathway.  Those who scrimp and save every little penny to pay for tuition and other expenses related to higher education are more likely to appreciate the effort that it took to obtain the degree come graduation day.