With the passage of the economic stimulus package, small businesses are going to struggle more than ever
LOS ANGELES, April 2, 2009 — Across the country, many small businesses are barely hanging on. Prominent small business groups, including the National Federation of Independent Business and the Small Business and Entrepreneurship Council, have stated that the passing of the stimulus package does little to help small businesses grow or even survive. These organizations argue that the new jobs created in the past 10 years have come from small businesses, yet they are ignored in one of the largest economic plans ever passed in the U.S.
"With the future of small businesses uncertain and funding limited, small businesses are turning to business credit cards instead of traditional business loans," said Charles Tran, Research Director of the credit card comparison website CreditDonkey.com.
He advises that there are several ways that business credit cards can be used intelligently by small businesses as a proactive corporate stimulus plan:
- Accessing a Cash Source. Business credit cards are an immediate, convenient source of cash. They can be used to pay vendors, order supplies and cover travel expenses. The use of business credit cards topped the list of financing sources for small businesses last year, according to a 2008 survey by the National Small Business Association.
"As you can see, business credit cards aren't just for emergencies; they are indispensable," Tran said.
- Developing Business Credibility. They can be used to help establish a successful record and credit history until more capital is readily available.
- Earning Cash Back Rewards for Your Bottom Line. Business credit cards aren't just for charging needless expenses. The perks of most business credit cards today can actually impact your business in a positive way.
- Building a Solid Credit History. Using business credit cards can help establish a respectable credit history. They may allow you to pay off the entire balance before the due date. Another option for businesses is a business credit card with a high spending limit that will allow you to carry a balance.
- Managing Tax Matters. Not only do credit card statements help you sort your expenses come tax time, but they may also come in handy when a tax bill needs to be paid and your cash flow is dry. While it's not advised to do so often, the Internal Revenue Service has begun accepting credit cards for tax payments.
- Enjoying Increased Security. Many credit card companies protect the user against poor merchandise and undelivered service – giving the small business owner peace of mind about inventory purchases and new vendors.
Small business owners can visit http://www.creditdonkey.com for free comparisons of major credit cards that they can use to help keep their business afloat in these trying times. They can search, compare and apply right on the site, finding the best credit cards for their needs.
Contact:
Charles Tran
866-586-2488
Email
http://www.creditdonkey.com/
# # #