In today’s small business world, ethics are more crucial than ever. Not only from a ‘moral’ stand-point, but from a bottom line one too.
By “ethical resources,” we are referring to business goods and services that are really the highest value offered by companies who do what they say, when they say it.
Bottom line, it is important to find ethical resources for small business owners.
Here are some examples :
MERCHANT ACCOUNTS:
Statistics prove that over 98% of small businesses pay too much for credit card processing. The merchant account industry is fraught with confusing pricing, hard-to-understand statements, and sales people pushing bait-and-switch programs as fast as they can.
And, today, most entrepreneurs do not even know there are new federal security and compliance laws that even the smallest company taking credit cards must stick to or face staggering penalties that could wipe them out financially. (Can anybody say,’TJ Max’ and their $55,000,000 penalty?)
There are several issues an entrepreneur should be conscious of when considering a new credit card processing provider.
- Better Business Bureau Good Standing
- No Unnecessary Fees Or Penalities
- High Customer Retention (I know of one company with a 98% retention rate, which is incredibly high in this industry, plus zero Better Business Bureau complaints)
- 24/7/365 Customer Service
- Lowest OVERALL Cost (check your ‘effective rate,’ not the loss-leaderyou are being scammed with)
- Ethical Business Practices
- Easy Switch
SMALL BUSINESS CREDIT (unsecured and secured):
Financial institutions turned down 70% of all commercial loan applications prior to thcurrent credit crunch.
This year, small business owners will find it even tougher get capital. A lot tougher.
Financial institutions are wary of extending loans, the government is putting incredible pressure on them. The foreclosure situation is affecting the business finance situation and you may feel the brunt of it this year.
But what happens when you must grow your business by purchasing new inventory or equipment, or starting a new promoting or advertising program, or making necessary repairs, or face an emergency?
(If you believe you will rely on the traditional last-resort of small business owners – credit cards – you must realize that it is nearly impossible to get a new credit card, and, for the ones you already have, credit rates are being raised significantly and credit limits are being slashed everywhere.)
But there ARE still resources for unsecured and secured small business financing … you simply need to know where they are and understand the ’secrets’ to having your loan approved.
EQUIPMENT FINANCING:
Again, any sort of small business financing is tougher today than in years before.
Having said that, there are still sources financing business equipment like computers, copiers, restaurant, trucking, and others.
EQUIPMENT LEASING:
Small business equipment leasing could be just the answer for owners realizing the financing market has changed.
Equipment leasing is a fast, simple and effective way to get the equipment you want. There are plenty of benefits to leasing, especially in the current liquidity crisis. Most companies can still qualify, and most types of equipment can be leased.
According to the Equipment Leasing Association, 80% of small businesses lease some or all of their equipment. In the coming months, that percentage should increase exponentially.
What are the benefits of leasing?
- Quicker Than Traditional Financing – Getting a loan can be a long, agonizing process. Compare that to leasing, which can be finished infrequently in less than a week.
- Easier Than Traditional Financing – Getting a lease is often so simple as filling out a 1-page application. Leasing corporations look more at the hardware itself as security, less on the business or owner’s credit.
- No Money Down – When you purchase equipment, lenders generally require 20-30% money deposit. This can quickly exhaust your working capital, and, with credit tightening, you may not have other sources of money. Leasing firms do not require a down-payment.
- 100 Percent Financing For Everything – Not only can you get 100% financing for the equipment, you can get it for other elements of the sale such as installation, labor, maintenance contracts, training, consultation, etc.
- No Fees If Not Used – Banks frequently charge a fee on your line of credit, even if you do not use it. Leasing does not.
- Leasing Is More Flexible – Leasing plans can be set-up to meet your requirements, for example, perhaps you need your payments to start after ninety days so you can install and get the hardware running. Traditional financing does not permit this.
- Does not Have An Affect On Your Debt Ratios – When you borrow money for cash flow or for new purchases, it constrains how much more money you can borrow. Leasing often doesn’t affect your ability to borrow money for other uses.
- No Additional Liens – Banks often put liens on the other assets of one’s business when you get a loan from them, including your receivables. Leasing companies only put a lien on the equipment you finance through them.
- Fully Expense Lease Payments – This offers valuable and direct tax deductions.
- Lower & Fixed Monthly Payments – Monthly payments are by and large lower, and they are fixed … there are never any unpleasant surprises like you can find with financial institution financing.
- Accounting Simplified – No more intricate schedules, only easy “rent” expenses.
- No More Obsolescence – You can keep your equipment up-to-date, and takeadvantage of the most modern technology for greatest efficiency and return.
No matter what the small business resources you need , it is imperative to put “ethics” on your list of things you do in your due diligence . It is usally worth paying a bit more for the reassurance that you are getting a fair product or service, and that if you have issues they will be dealt with in an ethical way .
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