Practically all businesses need money at one point or another. Many financing options exist, but two popular choices are to open a line of credit or get a credit card. Deciding upon the best option may be difficult since credit cards and lines of credit work in a similar way — both allow you to access money when you need it and then you make payments on a predetermined schedule. If you don’t know whether to use a line of credit or a credit card for finances, the scenarios below can help you decide.

What Do You Do If You Have a Difficult Time Getting Approved for a Loan?

Credit cards typically have higher interest rates than lines of credit, but getting approved for a credit card is much easier. All you need is proof of income to get a credit card. A line of credit requires proof of income and collateral. If you’ve previously been declined for a loan, a credit card can be your best option, giving you a better chance of getting approval to borrow the money you need.

What Do You Do If You Need to Get Money Fast?

Getting a credit card is easier and faster than getting a line of credit. Many banks will instantly approve you for a credit card and give you a number to use until your official card arrives in the mail. You could potentially use a credit card the same day you apply for one. If you need money quickly, a credit card is the best option. However, you’ll need to keep in mind that you’ll have to deal with higher interest rates than if you requested a line of credit.

What Do You Do If You Need to Borrow a Large Sum of Money?

Credit cards allow you to receive money quickly, and you can get approved to receive one without much hassle. However, you can usually get approved to borrow more money with a line of credit. If you need more than a few thousand dollars, a line of credit is your best option.

You can turn to almost any bank for a small business line of credit, but working with a company that specializes in this type of credit is better. For example, Kabbage offers unsecured small business lines of credit at competitive interest rates. Additionally, this online lender could qualify you for a line of credit up to $150,000.

What Do You Do If You Only Need a Loan for a Short Time Frame?

In general, getting a line of credit is better than a credit card because lines of credit have lower interest rates. This reality doesn’t matter much if you plan to have the loan only for a short time frame. If you pay off your credit card the same month that you use it, sometimes you can avoid interest entirely.

Never apply for a line of credit or a credit card without a plan for how you will pay back the money. Always consider the terms of the loan and choose the best option for your business. If you still don’t know what to do, talk to a business financial expert.

Working capital is something every business needs in order to maintain growth and remain profitable. When a company’s cash flow starts to become unreliable however, they are forced to go to great lengths to reach a comfortable margin for operating, at prices that are difficult to justify. Most commonly, they apply for a bank loan but even if they should be approved, there are high interest rates to contend with. Eventually, some enterprises find that financing their business through loans does them more harm than good, and ends up costing more in the long term. There are ways to run a lucrative business and save money by avoiding money borrowing altogether, so long as there is consistent work. Invoice factoring helps you meet all of your payroll, tax, raw material, and supply costs and helps you cover critical expenses in order to keep your business functioning in a number of key ways, without the hurdles that come with costly loans.

Improved cash flow

Instead of waiting for your customers to pay their outstanding invoices, freight factoring allows you to access immediate cash that you can use to achieve your business objectives instead of waiting 30, 60 or even 90 days to get paid on your outstanding invoices.

Freedom to seize new opportunities

Because cash flow is directly tied to your invoices, factoring allows a third-party company like Accutrac Capital to worry about collecting invoices on your behalf, while you take advantage of new opportunities for growth. Whether it’s new sales and marketing initiatives, new equipment for expansion, or the ability to secure new accounts, factoring frees up your time and labor to focus on growing your business.

A better alternative to bank loans

Many lenders and banks avoid lending to invoice-reliant companies, and often place unrealistic hurdles between you and the money you need to operate. Freight bill factoring offers you the ability to maintain working capital for your business while a third party takes care of the outstanding invoices you are owed. Relying on a factoring company for trucking industry needs is now a commonplace practice, and makes up part of many businesses’ financing strategies.

Additionally, factoring companies offer discounted rates on fuel and currency exchange for clients who take on jobs across the border. They even offer equipment financing for those who wants to grow their fleets but who do not have sufficient enough collateral to be approved by the bank. Partnering with a factoring company allows businesses, and especially start ups, to create positive cash flow when first getting themselves off the ground. They also provide funding for clients where they would not otherwise be eligible, as qualification is based on the credit worthiness of the client’s customers.

The best way to improve cash flow is to choose invoice financing or factoring as an alternative to a commercial line of credit. Paying a small percentage to have outstanding invoices taken care of is worth the opportunities that acquiring your sums upfront can give you. Finally, it alleviates the frustration of dealing with tardy customers, or waiting to get paid (or paying your workers!) and having that be out of your control.

Being a business owner is kind of like being a fitness enthusiast, in the sense that you’re constantly focused on getting stronger. For example, you want to strengthen relationships with your customers, strengthen your brand, strengthen your reputation, and strengthen employee engagement. Indeed, even if your idea of a nutritious lunch is eating a donut (hint: please stop doing that to yourself), at least in terms of business health, you’re all about getting stronger and stronger. And that brings us to your credit score.

Strengthening your business credit score also needs to be on your priority list — especially if you want to negotiate better terms with suppliers, or get approved for business capital loans or lines of credit. With this in mind, here are three effective ways to pump up your business credit score muscles:

1. Get a DUNS Number

A DUNS number is a 9-digit identifier from Dun and Bradstreet (D&B). You can use it to establish your credit file, which is what prospective lenders and suppliers will check (among other things) to get a sense of your credit history and overall credit worthiness. And if you’re wondering how much a DUNS number costs, don’t worry: it’s free.

2. Tell Suppliers and Vendors to Report You to Credit Bureaus

Don’t assume that your roster of suppliers and vendors are reporting your excellent credit behavior (i.e. pays on time, pays in full, etc.) to credit bureaus. While this is a best practice, let’s face it: suppliers and vendors are as busy as you are, and this is just the kind of task that slips through the cracks. As such, be proactive and remind these partners to extol your virtues with the credit bureaus.

3. Keep Personal and Business Purchases Separate

Sometimes, new business owners – more out of practicality than strategy – use the same accounts or credit cards for personal and business expenses. If you’re among them, then in the very near future put a financial wall between these two parts of your life. That way, when lenders and suppliers ask your bank statements to check or verify your business’s cash flow numbers, you can do so rapidly, clearly and professionally.

The Bottom Line

Just like building strong muscles, building strong business credit doesn’t happen overnight. But if you do the right things the right way, before you know it you’ll be flexing your credit muscles with pride – and lifting your small business onwards and upwards.

Just because you’re a small business doesn’t mean that you can’t have a lot of the same advantages of big businesses. Even SMBs today can do business internationally, and that means using a lot of the same tools as a multinational. Learn why even small companies need video conferencing, and why you shouldn’t believe the myths.

Sticker Shock

The biggest shocker about videoconferencing is how much it doesn’t cost. Back in the earliest days of videoconferencing, the equipment was expensive, just the same way it was expensive in the mid-90s to buy a new computer. With most mobile phones and tablets having a better capacity than those early computers, why do you think the same doesn’t apply to videoconferencing? The technology has come a very long way from requiring its own server and a dedicated member of the IT department to operate it.

In fact, one of the advantages of Bluejeans videoconferencing is that you can even videoconference from your mobile phone or your tablet. No extra equipment is required, though if you are using videoconferencing frequently you may eventually wish to invest in better lighting, cameras, and sound equipment.

Another Sticker Shock

Do you have any idea how much meetings cost? Verizon white paper hard and soft costs of meetings. For instance, a five-person meeting lasting two hours with four people traveling to attend assigned an approximate cost of 3300 pounds. This includes over 53 hours for preparation and travel. A videoconference means that there are no travel expenses, and prep time is cut to roughly 16 ½ hours. The total cost to have a five-person videoconference comes out to just 1100 pounds.

Redefining Flexibility

Another advantage to using videoconferencing is the ability to have a truly flexible workforce. Whether at home, at the office, or even on a job site the ability to reach someone for a face-to-face conversation is priceless. A recent Gigaom study points out that 87 percent of off-site feel more connected when using videoconferencing, and that cloud-based apps great way engagement and productivity. In addition, cloud-based tools are often easier to use faces, and less expensive than traditional videoconferencing solutions. Off-site workers can join from their desktops, laptops, tablets, or even their smart phones. From the main office to a home office, to a café or airport waiting lounge, the conference can be wherever you are.

Re-engaging the Workforce

According to a Gallup poll, managers handle at least 70 percent of variances in employee engagement. A staggeringly low 13 percent of workers worldwide are engaged and involved in their workplaces and jobs. In the past 12 years, these numbers have made the most boring roller coaster in the world. Part of the problem can be the lack of consistency and absence of communication in which most employees operate. Great managers are consistent and communicate in a highly effective manner. The variation in all of these groups depends almost exclusively on how the workers are managed by their immediate superior and upper management.

By seeking out and giving employees collaborative tools, you’re giving them the chance to engage with each other as well as their immediate superior by getting everyone to work together on their assigned projects. It’s possible that you will see your staff shine, and may also discover if perhaps someone else light make a more effective and less of obstructionist manager. Great managers will create the correct environment for employees to feel trusted and respected, and rely less on office politics and manipulation to keep control of their workgroups.

Even When You’re Little, Think Big

One big mistake that any small business owner can make is not to plan for growth. While you don’t want to get too big of a head, you need to look ahead and reasonably decide how much growth will be ahead of you in the next five years. If you don’t plan to grow, will be like a plant in a too-small pot, so tangled up in your own roots that you can easily choke to death. By making use of inexpensive collaborative tools that are available without much startup cost, you can have much more flexibility than if you invested in heavy and expensive infrastructure that you will not need.

The beauty of cloud-based applications like videoconferencing is that they are far more scalable than the old model of off-the-shelf software and expensive hardware. By learning how to budget wisely you can get your small business on a healthy footing right out of the gate. You can have a custom fit, instead of a one size fits all that fits nobody, and does not fulfill your immediate business needs. These collaborative tools may well be the best thing that your workforce and balance sheet has ever seen.

Everyone likes saving money, and most people will do all they can to save as much as they can. As a business owner, you are probably interested in saving money wherever you can as well. And while cutting back on expenses and shortening hours may be one route you’ve thought about for saving money, you don’t need to do anything like that if you adopt a video conferencing system. Actually, you won’t have to change much of anything in your business’s day to day routine if you start using a video conferencing system. But, you may be wondering how a video conferencing system can help your business save some cash, well, it can do so in a number of different areas, some via cutting back on expenses, while others through increasing productivity.

Reduce Travel Needs

The most obvious and most significant change video conferencing can bring to your business is a huge reduction in travel needs. It costs a lot to go visit clients in another state, or even another country, and there are a lot of extra expenses tacked on to traveling besides things like gas or airfare. You need to deal with food, lodging, perhaps some rental vehicles, and so on. Adopting a video conferencing system can completely negate your requirements to travel anywhere as you can get in contact with clients, partners, other business branches, and anyone else you need to talk to that isn’t in the same building. Biz Tech emphasizes the fact that video conferencing not only allows you to stay in contact and share documents with anyone else in your company, no matter where they are, but that it also is a great method for saving time. Traveling somewhere for a meeting isn’t just costly, it also takes a great deal of time. No matter how fast planes become or how advanced maglev trains get, you’re always going to be dealing with time wasted in getting from A to B. With video conferencing, you no longer need to worry about all those wasted hours; you can meet with whoever you need to, discuss whatever you need to, and then get right back to work without any delay. Without video conferencing, that whole process could take days depending on the circumstances; with video conferencing, it’s a matter of hours, or even minutes.

Productivity and Teamwork

This benefit isn’t so much one that cuts back on expenses as it is increasing the amount of money your company can make. Adopting a video conferencing system like Blue Jeans for Business won’t directly increase your profits, but it can and will increase your employee’s productivity and foster better teamwork. Think about it for a moment, setting up even an internal meeting within your office requires all those who will be participating to stop what they’re doing and meet up with you in the conference room or other location. While the actual time spent walking there isn’t too much, with a video conferencing system set up, all participants can instantly join the meeting from their office right when it starts.

Being able to instantly being meetings from wherever you and the other participants are is a huge benefit. Alongside that is how it can help foster an increase in teamwork by keeping all your employees and any different departments in constant contact with each other. Additionally, Social Barrel discusses how many video conferencing systems have options for instant and direct sharing of files and other documents in real time. So you can send out memos and itineraries and anything else digitally during the meeting.

All of the money saved on travel and increase in productivity can help give your company a competitive advantage over your competitors. Inc. states that the constant communication and connection with clients can help foster closer ties and more loyalty. It also drastically cuts back on the time needed to deal with quality checks, revisions, and other changes. Projects that may have taken a week before might only take a day or a few hours with video conferencing.

Going Green

The environment and humanities impact on it has become more and more of a major subject in today’s world. Regardless of your personal stance on climate change, there are definite benefits to shifting your business towards the green side of things. Video conferencing, whether you use a provider that uses green power or not, is a fantastic way of making your business greener without really changing much in your operations. According to Tree Hugger, a report by the Carbon Disclosure Project found that video conferencing systems can cut back CO2 emissions from US and UK businesses by close to 5.5 million metric tons, as well as save upwards of $19 billion across the entire economy.

Getting in on that piece of savings pie may be fantastic, but video conferencing can also cut back on your paper usage, which can cut back on printing usage on costs and so on. Adopting a video conferencing system like Blue Jeans isn’t just a good way to make your business greener; it’s a great way to save your business some serious time, effort, and money.

Not so long ago, every business was tightening its belt to get through one of the toughest financial storms the world has seen in a while. It seemed like every market was affected by this financial maelstrom. Spending habits appear to be on the mend, so now is the time to take advantage. Knowing the best way to benefit from the switch in spending habits allows you to make the most of a good situation. Here are a few ideas that can help you to get the most out of this new dawn in consumer spending.

Learn Where People are Spending Their Money

Consumer spending has recently grown by as much as 7 percent in one month. This is the highest growth in a decade which doesn’t appears to be slowing down. But you need to know where people spend their money to take advantage of the trend. Even though the Internet is a prime location for spending, many people still prefer to shop in person. They get to pick up the items they’re looking at rather than simply reading about them. As a business owner, you need a good barcode printer from a  premium company like Shopify so you can put price tags on everything in your store.

Don’t stop with selling in your store. Since so many people prefer to buy both in brick and mortar stores and online, you can take advantage of this by linking the two (check out our post “Starting Something New: How Online Commerce is Changing the Modern Retail Store“). Realize that many people will check out your store in person and then purchase online. By making your products available in both locations, it’s possible for you to double down on the opportunity to sell. The people who prefer to purchase online can look at the products in the store and still purchase online. Take advantage of this by moving items you no longer want on your store floor to your website.

Offer As Much Information as Possible

Your goal is to market to those with disposable income, which means you have to be smart in how you target them. The wealthiest individuals are not as prone to make impulse purchases, so selling to them with forcible techniques may backfire, as reported by Bank Rate. Giving your customers the hard sell will cause them to turn away from your products instead of getting them to take action. A better plan is to provide as much information as possible so customers can make their own decisions about making a purchase. When you provide information, be cognizant that the act of buying something is really a search for a solution to a problem. If you present your products as an intelligent solution to a problem, customers will be more likely to make a purchase. The information you present should be both in the store as well as online. In fact, many business owners have taken the approach of providing kiosks within their stores that are equipped with a computer connected with the website. This bridges the gap for interested buyers, and they can continue to learn and buy even after leaving the store.

Utilize QR Codes to Capture the Growing eCommerce Market

The eCommerce market is at an all-time high in terms of popularity. Mobile eCommerce sales will top $638 billion in 2018, according to a report from Goldman Sachs as recently reported in Business Insider. This massive growth is something you can take part of when you take advantage of such technology as QR codes. Your customers can scan the codes using their smartphones and instantly see your site and everything you have to offer. By allowing your customers to discover your website through their smartphones, you encourage buying even after they leave the store. If you have a responsive site, they’ll be even more likely to keep using it on their phone, because they will have all the access they would have if they were using a desktop.

Advertising through Social Media to Increase Sales Online and in the Store

Social media is one of the most important marketing tools any business can utilize. Facebook alone commands attention from more than half a million people. If you set up a social media presence and connect it to your website as well as your regular store, you’re more likely to take advantage of the massive growth in online sales, according to CNBC. The trick is to not present your social media as an advertisement. Remember that everyone on social media is there to have fun. If you make sure your social media site has a personal feel, customers are more likely to trust your company and want to do business with you. Create posts providing information about your business, your products and anything interesting related to your industry. If you create posts that connect with the individual’s preferences, your sales and your financial stability will grow.

Numbers, figures, decimal points and dollar signs. Those are the key factors that will pop up from the page into the line of sight of the average person who reviews the financial side of your business plan. However, it is important to realize that there is a method to the numerical madness which must be made into a top priority. You can follow several simple steps that will make it possible for you to develop the financial section in a way that will effectively breathe life into your business plan overall.

Understand the Purpose of the Section

Beneath all the figures and calculations that will be reflected within the financial section of your business plan, you need to be able to clearly identify its specific purpose. The purpose and target objective of this section goes far beyond simply showing how much money you plan on spending and hopefully making at some specified point in the foreseeable future. There are actually two separate purposes that are fulfilled by this one section.

When you search for investment opportunities that are offered by venture capitalists, clever investors or even intelligent friends and relatives, you are going to need to be able to show them this financial reflection and projection. At the other side of the spectrum is the need to benefit from this financial forecast for your own personal and professional needs and expectations.

A well-developed financial plan will make it much easier for you to have a clear and concise perspective of how your business has done, is doing, and will do in the future. Instead of spending a considerable amount of time digging through seemingly endless piles of paperwork and forms, you will be able to have a quick point of reference that is readily available for review whenever the need for it arises.

Differentiate this Section from Accounting Reports

As you are working through the accounting section of your business plan, you have to keep close in mind the simple fact that it is absolutely not like the accounting reports that you generate on a monthly or even weekly basis. Many people seem to forget that there is a major difference between those reports and the financial aspect of your business plan. First and foremost, those reports deal directly with the past (i.e. historical data, past cash flow statements, etc.)

On the other hand, the financial section of your business plan needs to focus more on the future. While it is necessary for your plan to at least address the financial past of your company, it needs to focus primarily on the future. Cash flow projections, estimates, and an overall forecast of the financial future will serve as the major building blocks and core elements of your plan. If you are not able to clearly distinguish between your accounting reports and the financial layout of your business plan, you need to go back to the drawing board and see where everything went wrong.

Create a Solid Sales Forecast

The best approach to take would be to focus on developing a solid sales forecast first before you dive into any other calculations and figures. A general rule of thumb is to simply create a record or spreadsheet that documents your sales projections for the next three to five years. Make sure that you have it sectioned off and categorized so that the person reviewing this part of your plan will easily be able to see everything they need, according to the Small Business Administration. The sales forecast will then make it much easier for all of the other puzzle pieces to fall into place primarily because the sales forecast will serve as a major cornerstone of its development.

Don’t Forget About the Expenses

While you are developing the financial section of your budget, make sure that you do not place too much focus on the green side of your calculations. Watching how quickly your figures will add up can become very mesmerizing and even hypnotizing, especially if you are fairly new to the world of business in general.

However, it is important for you not to allow these figures to cause you to lose focus and drift away. You need to also make room for expenses in those projections by developing a detailed expense budget. Your expense budget should cover everything – fixed costs and variable costs alike. Make sure that you focus primarily on developing a future forecast instead of duplicating your past accounting reports, though.

The Bottom Line

The financial section of your business plan needs to become much more than just figures and dollar signs. It needs to become a clear and concise reflection of the foundation of your business. When developing this section, you will pay tribute to the past by shining a light on where you have already gone. However, your financial plan will actually become a shining beacon that will illuminate the path to success on which your company will travel into the future.

Peer to peer loans, sometimes called social lending, is a fascinating phenomenon and a great way to obtain low rate loans or boost savings. Since the financial crisis and credit crunch started in 2007, many borrowers have found it difficult to obtain affordable personal loans. At the same time, interest rates have plummeted, making it difficult for savers to achieve decent returns. P2P lending brings these two needs together and provides a platform for sensible loans and reasonable interest for savers. What many potential borrowers don’t realise, however, is that there are ways to maximise your chances of landing such loans.

1) Check out your credit reports

Some P2P borrowers forget that it is not only lenders and financial companies who can look at their credit reports, they can too. When you check your credit report you will be able to see if there is anything that is potentially hurting your credit score and may put off P2P lending individuals. The UK government, for example, has passed legislation that means you can see your full credit report for only £2 and many companies offer a multi-agency report free as part of a free trial.

2) Dispute any inaccuracies on your credit report

It is quite possible that there will be inaccurate information on your credit report and this could hurt your credit score and lessen your chances of landing personal loans. This might include out of date information about previous residents at your address or errors about your own history. If there are mistakes, challenge them and have them removed from your file.

3) Tackle delinquent accounts

Lenders want to be as sure as they can be that you will pay your loan instalments in full and on time. If you have any credit cards, loans or other financial agreements that are in arrears or have missing or late payments then these should be brought up to date before completing your profile and making any applications for loans. It is a good idea to establish a solid six months of payments before making any loan application.

4) Reduce your debt to income ratio

One of the most important factors that potential lenders will look at is your ability to pay back the loan. A key criteria here is your debt to income ratio. Put simply, the lower that ratio is the better chance you have of acceptance and the lower your interest payments will be. Anything you can do to bring your debt repayments down will have a positive effect on your application.

5) Be realistic in your application

Potential lenders will look at your income and outgoings and make a judgement about what you can afford before offering any low rate loans. Asking for more than your circumstances, such as credit score, credit history and debt to income ratio, would suggest is reasonable is counter-productive. You won’t get the loan and you will appear naive or even desperate. Instead, be realistic in what you ask, based on the understanding you have gained of your own credit report.

Finding a credit card amongst the sea of choices today is daunting. Although you want the ease of swiping a card, and getting on with your day, you also strive for extra benefits. From points to free restaurant dinners, you’ve seen all the credit card incentives. However, United Explorer card benefits pinpoint your exact needs: travel luxuries. From growing flyer mile amounts to free checked bags, you have a travel partner with United.

Start with That Bonus Offer

You know you’ll use your credit card throughout the year, but United Explorer’s bonus offers may entice you to use this card more than others. Each calendar year, after spending $25,000, you automatically receive 10,000 bonus miles. Every year these bonus miles are available, making your trips across the globe easy to finance.

In fact, United Explorer wants you to have a solid start with flyer miles. When you charge $1,000 in the first 90 days after you receive the card. United Explorer automatically credits your account with 30,000 bonus miles. Your traveling will never be the same.

Traveling In Style

The glamor of flying has been tarnished recently with frustrating baggage fees and cattle call seating. Keep your party steeped in the lap of luxury with United Explorer’s benefits. If you are traveling as a couple, both of you are allowed one free checked bag when you fly with United. Even if you travel solo, you still have one bag that is free from high check-in fees.

Avoid the clamor of the group as everyone tries to board the plane at the same time. With United Explorer, you are allowed priority boarding, giving you time to stow your items in relaxing comfort. You can sit down before the rest of the plane boards.

Miles Add Up

Continue to fly with United to see your flyer miles grow exponentially. For example, you fly between Los Angeles and New York, and charge the tickets on your United Explorer card. Instead of earning traditional miles, you actually receive double miles for that trip.

Your other purchases are also not without their benefits. Regardless of the purchase, from dinner to that new cell phone, you earn one mile for each dollar spent. Those miles quickly add up. Use your credit card to charge almost every purchase, even a quick stop at a convenience store. You can pay off your balance at the end of the month to avoid interest charges, while still gaining crucial mileage.

Mileage Versatility

You are not limited with blackout dates using United Explorer card’s benefits. Any United flight can apply to your miles, including family flights with Asiana, US Airways, Lufthansa and others. In the past, your miles used to expire with other flyer programs, but maintaining a United Explorer card in good standing allows you to have miles that never expire. Save them up for a trip around the world. It is all up to your plans and spending habits.

Move On

If you have another United card, take advantage of the Explorer benefits by converting over. You are not applying for a brand new account, you are simply transferring your account. As a result of the change, you keep your original credit card number, but still receive Explorer benefits. If you have your credit card number on file with several merchants, this benefit makes the card change easy and trouble-free.

United Explorer card offers the world at your fingertips. With the added benefits for miles, baggage and seating, you are treated as royalty with any United flight. Keep this card handy for all your everyday needs to benefit with United Explorer’s fantastic program.