Small Biz Owners Urge Credit Card Companies to Ease Up on Fees 

As shoppers hit the malls and local retailers during one of the busiest holiday shopping weekends of the year, fewer say they plan to pay with credit cards, according to the National Retail Federation. But new legislation could give these shoppers more reasons to use their plastic by forcing credit card companies to comply with the CARD Act by December 1^st instead of February 10^th. Small biz advocates see a new proposal that is before the Senate as an opportunity to include small business owners in the protections against unfair credit card rate and fee hikes. 

Even as small business owners are being excluded from the protections provided to consumers- lawmakers are working to harness out of control costly interchange fees. In testimony before the House Committee on Financial Services, Congressman Bill Shuster says that interchange fees are one of the top costs small business owners face, “To put the impact of interchange fees into perspective of business owners…the second largest expense after payroll is the interchange fee.”

Creative Cash Flow Strategies for Credit Starved Entrepreneurs

Cash Flow management is a challenge in good times but it is even more challenging for small businesses that are struggling to stay open in this economy. According to a recent survey, small businesses are 25 percent slower in paying their suppliers and other companies than they were a year ago. Brandon Ansel co-owns and operates two franchise locations and says that he had to use personal credit cards to pay his vendors after the bank cut off his line of credit. His vendors weren’t happy about the arrangement but they were willing to work with Brandon and his business partner so that they could get their invoices paid within two weeks.

Having trouble collecting on your invoices? Credit Insurance can not only help provide small business owners with the peace of mind that they will be paid for their outstanding invoices it can also help secure loans according to Steve Guthart, of HUB International Northeast, an international insurance provider. “Since the financial crisis began banks have been cutting credit lines and are reluctant to lend money especially to small business, having their second largest asset now insured (if they purchase credit insurance) it’s a big security for lenders.”

For more information on credit insurance and other types of small business insurance click here.