In today’s world, it seems that more and more people use their credit or debit card as their method of payment for products and services. So why is it that some businesses still don’t accept credit cards?
Customers expect that no matter where they go, they can use their credit card. If you don’t accept credit cards, you’re running the risk of losing business. So ask yourself, does the cost of accepting credit cards surpass the potential loss of revenue?
If you answered yes, here’s something else to consider: A recent Visa and MasterCard study shows that the average purchases made with a credit card exceeds that of cash transactions by….are you ready….30%. Is your answer still yes? Check out the research on this topic by our friends at ORC Guideline.
As StormDawg would say, “Don’t Work Too Hard!”
Christina Kudym, StormDawg S.W.A.T. Team
Are you among the 74% of small businesses using a credit card to pay for your small business expenses? Or have you recently turned to credit cards because it’s so difficult to get a loan for your small business? If so, you’ve seen the dramatic increase in interest rates and dramatic decrease in your credit limit in the last year. How has this affected your business?
Because of these dramatic shifts, more and more businesses are turning to alternative finance companies for cash. Apparently, at some point, all of us have to stop borrowing money from relatives and take the plunge. Some of the people still willing to loan you money are asset-based lenders, factors, and merchant cash advance companies. But do you want their money?
Have you even heard of them? If not…I’ll bet they’ll be knocking on your door in one way or another shortly. Here is some great research from our friends at ORC Guideline that I think you will find interesting if you are wondering about credit cards, credit lines or loans for your small business.
Don’t Work Too Hard!
Christina Kudym – StormDawg S.W.A.T. Team
The headline from this article from the NY Times continues to highlight the problems that the credit industry is creating for small businesses. I have been posting about ways that small businesses are dealing with the credit crunch, and it sure looks like the crunch will continue for some time to come. We have some useful tips on what the Small Business Administration is doing and also creative ways to raise capital.
Last week on the evening news there was a story about a coffee shop in Manhattan called Vox Pop. It was about to go out of business but the surrounding community, businesses and residents came to the rescue. In what amounted to a mini IPO, enough money was raised from a whole bunch of people to allow them to stay open and pay their bills. In these tough times you have to be creative to keep your business going. Small businesses that are able keep the cash flow going, invest back in the business and continue to market will be much stronger once the recession ends.
Don’t work too hard!
StormDawg
