Tightening credit squeezes small-business owners

For small-business owners who rely on business credit cards, the recessionary landscape looks extra bleak these days.

[UofC employee]

Mettawa-based HSBC North America Holdings Inc.'s retail services group, the company that issued OfficeMax credit cards is actually the massive CHINESE BANK: Hongkong & Shanghai Banking Corporation There is nothing 'Mettawa-based' about this money, its CHINESE money people, do we all understand that?!

[bobby the g]

UofC employee wrote:

Mettawa-based HSBC North America Holdings Inc.'s retail services group, the company that issued OfficeMax credit cards is actually the massive CHINESE BANK: Hongkong & Shanghai Banking Corporation There is nothing 'Mettawa-based' about this money, its CHINESE money people, do we all understand that?!

Yeah, it's chink money over by dere'!

[Ilya Bodner]

Well the fact that more and more business owners are
struggling is no secret.

The most important thing right now is for small
business owners to realize that this is the time to get
creative!

Sincerely,

Ilya Bodner
Small Business Owner
Initial Underwriting Group

[TANGLEFOOT]

You're ghetto

[The Storm]

I am just about to start up my small business. Am i crazy to try this? I have always wanted to get it going but just never had the nerve. So far i am going in to this debt free as i had resources saved for a day when i could get the business up and running.
If anyone has any advice for me to help me get on my feet i would greatly appreciate it.

[Tech Super OMAX]

The Storm wrote:

I am just about to start up my small business. Am i crazy to try this? I have always wanted to get it going but just never had the nerve. So far i am going in to this debt free as i had resources saved for a day when i could get the business up and running.
If anyone has any advice for me to help me get on my feet i would greatly appreciate it.

As a person with a business degree i would have to say if you plan on being debt free now is a good time. It is easy to find property and employees. If you are going it alone i would recommend you have at least 6 months of salary. So in other words you want to pay yourself 5000 month make sure you have 30000 left after opening your business. Beyond that make sure you are opening something unique with little competition or something that you know you can undercut the competition. During recessions we are looking for the best deal and that will hold true with your potential customers.

[The Storm]

That advice is well taken.I am going it alone to start.I Actually i have a job that will allow me to keep working at it and work at my business. My job has wierd hours and while i am sure i will be worn out from all the extra work, i just want to make sure i won't lose my rear end trying to make a living in a bad economy with a new business. Thus, i am going to try to keep working.

[THESUCCESSNETWOR K]

I have been looking for ways to build Strong Business Credit...there seems to be a lot of information online to sort through...blogging and search engines seem to be helpful...Any other suggestions?

[Tech Super OMAX]

THESUCCESSNETWORK wrote:

I have been looking for ways to build Strong Business Credit...there seems to be a lot of information online to sort through...blogging and search engines seem to be helpful...Any other suggestions?

It depends on what type of business. Is it a corporation, LLC, or sole proprietorship? If it is a corporation then I would suggest using the assets (buildings, product, etc.) you currently have to receive secured loans. Watch out for product bases loans though becasue they come with high interest rates. Also if your company has a bunch of capital then you can create secure loans using that money. That can help you on taxes also in some cases. If you are a sole proprietorship then your credit is also your companies credit so build your credit using assets like your home, vehicle, so on. Finally a LLC is basically like a corporation, but if you have share holders then you will have to run your decisions by all of them. All in all use your assets that you have and by all means be careful; don't get loans you can't afford and if you feel pressured or the loan just doesn't make sense walk away. It is going to be tough epically now. Finally keep your eye on what the government has to offer I have a suspension they may be offering small loans to small businesses soon.