Merchant Services – Are You Losing Money?

downloadAccepting credit cards is a crucial part of profitability for businesses today. Essentially, businesses lose money when they cannot accept credit cards as a form of payment. With the widespread use of debit cards, people are using cash for their daily dealings less and less. In today’s world, most individuals only carry a few dollars on them for emergencies. Personal checks has become a thing of the past. For consumers, they are difficult to carry and time consuming to write at the time of check out. Fewer companies are accepting checks now. Comparing to the cost of processing credit cards, the cost of retrieving inadequate funds is staggering. The merchant service provider is able to make sure the availability of funds immediately, while a personal check takes days. The boom of online shopping, also known as e-commerce, has made having a credit card or debit cards and being able to accept debit or credit card is a necessity.

How do businesses get paid when a customer uses a credit or debit card to pay for services? The credit card is “swiped” and a merchant services company gathers the customer’s account information and confirms the amount is available. The merchant services then collects the money from the customer’s account and deposits the amount into the organization’s banking account. The merchant service charges the company a small fee for each deal. The fee may be less than 1% or as high as 3%. The amount paid to the company depends on your credit cards processing company and the size of the business. On the processing side, there is profit with a large volume of dealings or a hefty processing fee imposed on the company. On the business side, it is best for businesses to decrease costs. Business will look for a merchant cards services company that has the lowest rate per deal and deposit funds as quickly as possible.

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What Is A Business Loan All About

Business LoanNot all business loans are the same. Some can be defined by the money that is borrowed for a certain amount of time and with a certain interest rate that will be paid for the money borrowed. The person or persons that are operating the business or how they plan to operate the business will define others. The definition of a business loan is so broad that it cannot be defined by only one definition.

Types Of Business Loans
There are many different types of business loans. One loan might be able to work for one type of business owner and business type but another type of business might benefit from a different type of loan. Deciding on what type of loan will benefit your business the most is not an easy process. If your business is a start up business or if you have never owned a business before you might find that the bad credit realistic loans you apply for is more like a personal loan and can be a risky business move.

Establish Business Credit
If you are a personal business owner one of the most important things you will need to do first is to establish business credit. This will help you further on down the road when you are need to obtain a business only loan and you do not want to use your personal credit.

The first step in obtaining business credit is to open up a business credit card. The trick here is to be sure that you keep a good credit history with the business credit card. You need to use it often but pay it off in full every month.

A second way to obtain business credit is to work with companies that will report your good credit management to the business credit bureaus. Such companies are ones that you can buy equipment and supplies from for the operation of the company.

And a third way to obtain a good business credit is to have a good business plan in place. This plan should include potential earnings, letters of intent and whether or not you already have any contracts with customers in place.

Types Of Business Loans Available
As a business owner if you are attempting to obtain a business loan you might find yourself overwhelmed by the many different types of business loans that are available. Some of these loans are known as acquisition loans. These are loans that are used to acquire businesses that already exist. Another common type of loan is an inventory loan, which is used to build the inventory of the business. There are also other loan types such as working capital loans, commercial property loans, warehouse financing, international business loans and franchise loans. You will need to find the type of loan that best fits what you need for your business to be successful.

When making the decision to obtain a business loan you will need to do plenty of research to decide what type of loan will be the best for you. You will also need to research to find the best interest rate and financing terms for your business loan. Once you have all of this you will be on your way to obtaining the loan that is needed for your business success.


Tips For Reducing IT Cost

images (8)Businesses are including more and more technological innovations to daily projects. While this technology can be reasonable it does create additional expenses. Entrepreneurs are always looking for methods to decrease IT expenses and there are certain methods to decrease these expenses without giving up performance. When handling IT expenses it is significant to keep in mind that performance plays an important part in success. There are four main basic steps to take when considering decreasing IT expenses – these are: figure out what you need, manage your IT division, negotiate expenses, and negotiate current agreements. While these are the basic steps to decrease IT expenses, there are more comprehensive software’s and programs available such as virtualization.

The first phase in decreasing IT expenses is to assess what you have in the way of technology and figure out what you truly need. Determine if you have things that do similar features that could be eliminated. To execute this phase properly it is essential to execute an audit of all software, hardware, computer systems, and other technologies. Some may consider using not fully up-to-date hardware and software. Another essential phase in decreasing IT expenses is managing your IT division. Control within the IT division not only guarantees that things are being done effectively but also that everyone is doing something and cash is not going to spend. It is also essential to be sure that you do not have several employees performing the same work in an unnecessary capacity. Another method to handle your IT division is to particularly train workers in different areas – enabling more work to be finished in less period of time. The next phase in decreasing IT expenses is consolidating. There are several methods to go about consolidating – for example having several contracts with several providers, when you could be working straight with only a few.

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How to Prevent Business Fraud

Business FraudUnfortunately in today’s business world, the risk of fraud exists no matter how hard you try to ignore it. And, in fact, ignoring the possibility of fraud makes it more likely that the consequences will strike your company hard. It is dangerous to be complacent and believe it’ll never happen to you, or that there are more profitable targets for a fraudster to hit. Preventing fraud should be a priority and luckily it is not difficult or expensive to fraud-proof your company. You may not be able to avoid all incidences of fraud by doing these things, but you can at least make it harder for criminals to take money and cause problems for your business.

1. Lead From the Top
You need to set a good example to your staff in all things anti-fraud. It is surprising how many business owners still have a blasé attitude towards fraud and financial crime – some people even view it as kind of a joke. For example, you as the boss decide to get a good deal on supplies by paying in cash when you and your staff know that the supplier will not be declaring this income. It paves the way for staff to consider that it is OK to “fiddle” the expenses or do the same with their own supplier contact. A little money-saving between business friends becomes more serious when the same attitude is taken to your company car policy, for instance.

2. Refine Your Anti-Fraud Policy
It may seem unnecessary to have an anti-fraud policy – everyone knows fraud is bad, and that it should be avoided, don’t they? But an anti-fraud policy can be more than a document no one ever opens. The point of a fraud policy is to make it clear that fraud is fraud, whether the amount of money concerns a meal in a restaurant or a flight to the Bahamas. The message needs to be communicated to staff that there are consequences to fraud and it will not be tolerated.

3. Put Effective Controls in Place
According to, many businesses do not have sufficient security measures in place to protect against fraud. You need controls in place such as a two-signature system to add a new supplier to the roster, or approval from senior management for supplier bill payments. If you don’t put controls in place then a criminal will find it easy to recruit someone in your organization in order to put in false invoices and get paid. If the amounts are small the fraud can go on for years and cost thousands before anyone even notices.

4. Keep Your Eyes Open
No one is telling you to be paranoid but it pays to be alert at all times. Fraudsters are constantly evolving their tactics to make money from businesses. It helps when you are prepared to acknowledge that fraud can happen to you, and then you need to be aware of any irregularities so you can investigate them before they become a major problem. And it goes without saying that the penalties for committing fraud must be harsh – if people in your company commit fraud you must go through the proper channels to prosecute.


Having A Successful Business

download (4)Entrepreneurs are some of the most positive, and often the craziest individuals on the globe. No-one begins a company knowing that it will not be successful. We are all definitely assured that our concept is a fantastic one, that we will be effective (where others have failed) and that this company will modify our lifestyles for the better. If we did not think that way, we would never take the threat to invest our own cash, or lend from others to begin our company. The truth is however, that, according to the SBA, most companies gradually don’t be successful and more that 50% do not survive beyond the first 3 years. Even if you handle to get that far, factors can still go terribly incorrect, as many professional company entrepreneurs discovered out during the recession which hit us during 2009 to 2012. So, does this mean that you should not begin a business at all? Definitely not. I believe that your company can be an excellent achievement, if you strategy it in the right way, prevent duplicating past errors and encourage self-discipline on yourself as the owner. Here are some of my recommendations on how you can create sure that your business succeeds:


Lets begin with you. Successful entrepreneurs are disciplined individuals and more often than not, companies are not successful because their entrepreneurs are not successful. Your company must compete to be successful. There is always someone out there, trying to win over as many of the clients that you are focusing on. Industry is aggressive and if you do not plan to do their best and self-discipline yourself, then don’t get into the field. Anywhere there is competitors, there must be self-discipline. You could have the most exclusive expertise, or the best product concept, but your company will never accomplish its complete potential, if you do not have self-discipline.