If you are a small business owner, then you should consider getting a business credit card. A great practice for business owners is to keep personal and business finances separate. One way to do that is to apply for a business credit card. Have you been told that credit cards are more trouble than they are worth? That’s not all true; they can be beneficial.

Business credit cards and consumer credit cards have some differences. Consumer credit cards are used to establish a line of credit for individuals. Business credit cards are for business owners-whether that is a corporation, small business, or freelancer-to credit purchases for business expenses. Various institutions offer different options for business credit cards. The key to it all is choosing the right small business credit card that suits your needs.

What Is a Small Business Credit Card?

A small business credit card is a business credit card that establishes a line of credit to cover business-related purchases and tailors to the needs of a small business owner.

Some benefits of a small business credit card are:

• Helps to build a business credit score
• Frees up cash flow
• Higher credit limits than personal credit cards
• Offers perks and reward points
• Opportunities to earn cashback

Trailing the benefits of a small business credit card are the annual fees and high-interest rates.

Who Qualifies for Business Credit Cards?

Technically, as long as you have a business and a legal business name, then you could qualify for a business credit card. You have to be a legally formed business entity- a corporation, S-corp, C-corp, LLC, or sole proprietorship. Any business that is of any size qualifies for a business credit card. Virtually any business that sells a product or service is eligible for a business credit card.

How To Get a Business Credit Card for a New Business

As a new business, you may find it a bit difficult to get access to a flow of cash like a business loan. However, there is another option-a business credit card. Some banks and other financial institutions promote business credit cards for new businesses. To apply for a business credit card, you will have to fill out an application. Applications can be completed online or in person at a bank or other financial institution. You will be contacted with the final decision via email or mail.

Before starting your application, be sure to gather all of your required information to accurately enter the information on the application. Here is a list of the items you need when applying for a business credit card for a new business.

• The legal name of your business
• Your business contact information (phone number and address)
• Business legal structure (entity type)
• Type of business industry
• Business Tax Identification Number or EIN (Employer Identification Number)
• Date of business formation and the number of employees
• Annual business revenue
• Monthly business expenses
• Your legal name, date of birth, and SSN (Social Security Number)
• Your personal income and credit history

You may have noticed that you will need both information for your business and personal information. This information is used in the personal guarantee portion of the application. The personal guarantee acts as an agreement for you to be fully responsible for any debts associated with the business card. This also gives the card issuer the legal right to pursue your personal assets.

How to Get a Business Credit Card With an EIN Only

Most business credit card applications ask for your SSN (social security number) along with a personal guarantee. A business credit card that only requires an EIN (Employer Identification Number) may not ask for a personal guarantee, but there may be different requirements to qualify for the card.

An EIN (employer identification number) is a government-issued nine-digit number with the purpose of identifying a business as a taxpayer. If you haven’t applied for an EIN, you can apply for one on the IRS website.

Business credit cards that ask only for an EIN are most likely corporate business credit cards. These business credit cards don’t ask for an SSN during the application, but they do require businesses to make a certain amount of profit annually.

To apply for a business credit card with an EIN only:

1. Your business must first be determined if it is eligible to apply for the corporate business credit card using the EIN.

-Qualifications are based upon entity type, company size, and estimated spending activity for the business credit card.

2. Once declared eligible to apply, you have to decide if the corporate business credit card is suitable for your business.

How Long Does It Take To Get a Business Credit Card?

Business credit card applications are completed online and in person. If you completed an application online, then you will be notified almost immediately if your application was approved or denied. However, if you completed your application in person, then it may take up to 7 business days for review.

If you are approved, then you can expect your business credit card to arrive in the mail within  7 to 14 days. If your application was denied, then you can expect notification by mail of the determination. The banking institution may also provide instructions on how to appeal the decision.

Best Business Credit Cards for Your Small Business

There is an overwhelming amount of business credit card options available to small business owners. Some business credit cards may have a higher chance of approval than others. Each business credit card may have something different to offer, but that does not mean that it will be the most beneficial for your business.

Applying for a business credit card because it is the easiest business credit card to get… That is not the best strategy to improve the financial outlook of your business. There are other things you must consider:

• Why does your business need this business credit card? To build a credit score, develop a business credit history, or earn cash back.
• Is your personal credit history able to withstand a hard inquiry from the application process?
• How soon are you planning to use your new business credit card?
• Will your purchases stay below the credit limit?

Final Thoughts

Business credit cards are beneficial to business owners, but they don’t come without risks. Available to all business owners, business credit cards offer opportunities to build credit scores and credit history. The application process, however, requires information about the business and personal information from the business owner. The information is used in the personal guarantee holding the business owner liable for any debts.

You might be wondering how long do you have to be in business to get a business credit card. No need to worry about this. It doesn’t matter how long you have been in business to get a business credit card. Business credit cards are generally available to all businesses. You just have to find the one that fits your business well and apply.

Facebook Marketplace began as a place for users to buy and sell items similar to a garage sale. Since its introduction, Facebook Marketplace has gained popularity over the years. Since our world prefers online shopping over traditional stores, Facebook Marketplace has become a hot commodity among business owners.

The in-app platform allows anyone to post items-new or used-for sale, purchase, and shipment through Facebook. In the past, the majority of items sold were from individual sellers. As the individual side of Marketplace gained popularity, business owners have become keen on its benefits and potential.

Some benefits of using Facebook Marketplace as a business owner are:

• Exposure for your business and brand. Based on data from June 2021, 70% of Facebook users visit the app daily.
• A variety of marketing tools are available. The different tools for advertising help you discover ways to reach your target audience.
• Opportunity to provide a personal experience with customers. Communication using Facebook Marketplace takes place in Messenger. The conversations tend to be one-on-one and more personalized.
• It’s free to list your item for sale. It doesn’t cost anything to list an item, but as a business owner, Facebook has a fee that they will collect after you make the sale.

What Is Facebook Marketplace for Businesses?

Facebook Marketplace for business is only available in the Facebook app. Anyone who has an active Facebook profile can use Facebook Marketplace. If you choose to act as a shop or business, then you can use the additional features of Facebook Marketplace for business.

Facebook Marketplace is a free peer-to-peer selling platform. Even though businesses can sell to many users, they conduct transactions individually. Sellers organize Items for sale on Facebook Marketplace by categories and then location. Businesses can reach a larger customer base when properly tagging products.

How to Get Facebook Marketplace for My Business

To use Facebook Marketplace for your business, you need to have a Facebook account. If you don’t have an account, you can sign up for one. Once you have signed up, you can create a business or personal account and select the business marketplace icon to see Facebook Marketplace.

If you’re ready to start selling on Marketplace using your Facebook page, you’ll first need to list items for sale. You can use your Facebook account on a desktop and the mobile app. To list a new item for sale, open Marketplace and create a new listing. Choose the listing type: an item, a home or a vehicle for sale. Add photos and a detailed description. Set your price and delivery method. Finally, publish your listing.

Facebook Marketplace Features for Business Owners

Businesses have the opportunity to reach a larger audience using Facebook Marketplace and its array of features. Businesses such as car dealers, realtors, real estate agencies, retailers, craft artists, seamstresses, jewelry makers and more can use Facebook Marketplace to connect with customers who are interested in buying their products.

Facebook Marketplace offers business owners different tools associated with marketing and advertising like:

• Automated response tools such as chatbots or automatic replies to common questions
• Advertisement creation for use across multiple platforms such as Instagram and Messenger.
• Target objectives are available for selection during ad creation. Examples of objectives are traffic, lead generation, brand awareness, messages, conversations and store traffic.

Facebook Marketplace also allows customers to rate or score your business on being prompt in responding to messages. The app displays the rating badge on your business marketplace profile, making it visible to all customers who interact with you.

How Safe Is It To Sell on Facebook Marketplace?

Safety is a priority concern with Facebook, not just Marketplace. To ensure that Facebook Marketplace remains safe, there are rules and policies in place. You cannot sell certain items such as weapons, drugs, stolen goods, alcohol and digital media. Every item listed for sale must be a physical item and match its given description.

Selling on Facebook Marketplace is fairly safe. But both buyers and sellers should take precautions.

Beware of scammers

• Facebook does not control payment processing. It is the seller’s choice. Cash is still best.

Verify buyers

• All communication takes place through Facebook Messenger. Even as a seller, you have the option to view someone’s profile. When arranging a local meeting place, meet in a public place. It’s best to meet during normal business hours.

Tips for Selling on Facebook Marketplace

Facebook has billions of users. You want to make sure that your business and product stand out from the crowd. Here are a few tips for selling on Facebook Marketplace.

• Research products others have sold. You want to know what customers are buying so you can decide if you need to create a supply for the demand. During your research, you also learn what keywords and descriptions to use for your products.
• Add quality photos with great lighting. Customers like to see what they’re buying. Providing good photos from different angles with good lighting will help customers see the product before they have it in their own hands.
• Price your products competitively. You don’t want your products priced well beyond the range of others. Find a price that matches the quality of your product, yet appeals to the customer.
• Ask for customer feedback. Listen to what customers have to say, and target your ideal customers.

Best Selling Items on Facebook Marketplace 2022

Sellers must stay current on market research. You should always know what is in demand as a business owner. Here are the best-selling items on Facebook Marketplace.

• Laptops
• Clothing (baby clothes, kid’s clothes and adult clothes)
• Dog toys
• Home Decor
• Books
• Fitness Equipment

Final Thoughts

Living in a digital age, business owners must be flexible. Reaching customers online on a variety of platforms has benefits. Platforms like Facebook Marketplace allow business owners to list their products for sale for free.

Marketplace also provided business owners with different tools to help them reach their preferred customers. With the free listing and resources to increase customers and sales, it’s no secret why Facebook Marketplace seems to be the low-hanging fruit desired by many business owners.

If you’re looking for a cash advance with bad credit, you may be feeling a bit hopeless. 

It can seem tough to find lenders who will work with you if your credit score is low. However, there are still options available to you. 

In this article, we will discuss eight tips for how to get a cash advance with bad credit. We’ll help you understand what a cash advance is, what bad credit is, and where you can go to get cash advance loans with bad credit. 

So, don’t give up yet. There are still ways for you to get the cash that you need.

What Is a Cash Advance?

A cash advance is a short-term loan that you can use to cover emergency expenses. It’s a great option if you need cash quickly. Cash advances are typically unsecured loans, which means that you don’t need to put up any collateral. 

What Is a Bad Credit?

A bad credit score is typically defined as anything below 600. It can be difficult to get approved for traditional loans when your credit score is low. The good news is that there are still lenders who will work with you if you have bad credit. 

How to Get a Cash Advance With Bad Credit

There are several ways that you can get a cash advance with bad credit. You can apply for a loan through a bank or credit union, or you can try to find a lender online. However, be aware that the interest rates on these loans will be higher than loans for borrowers with good credit. 

8 Tips for Securing a Cash Advance With Bad Credit

Here are eight tips to help you get the cash that you need.

Check Your Credit Score

Before you apply for any type of loan, check your credit score. Doing so will give you an idea of what lenders are likely to offer you. You can go to the three major credit bureaus, Equifax, TransUnion, and Experian, once per year to get a free credit report. 

Work to Improve Your Credit Score

Look at your credit report and see if you notice major errors. If you do, work on fixing those errors before applying for the loan. If you improve your credit score, you save money on interest and fees.  

Get Your Financial Details Ready

Typically, your bad credit lender will use a preliminary application to decide whether or not to give you a cash advance loan. The lender will use a soft credit check, which won’t affect your credit score. The soft check tells the lender if you will qualify. The process will also tell you which rates you may qualify for.

Be prepared with your financial details before you start the application process. The lender will ask about the following details:

• Income stubs
• Social Security Number
• Date of birth
• Address
• Purpose of the loan

Find a Lender Who Specializes in Bad Credit Loans

Some lenders specialize in bad credit loans. These lenders are more likely to work with you even if your credit score is low. Take time to carefully research which lenders will more likely give a cash advance to someone with bad credit. 

Ask if Your Lender Will Report to the Credit Bureaus

Some bad credit lenders don’t report your payment history to the three credit bureaus. This means that you won’t be able to improve your credit score by taking out a cash advance loan. 

Ask the lender about their reporting practices before you apply for a loan. Go with one that will report your future pay-off schedule. Over time, this will help to improve your credit score.

Compare Interest Rates

Check with more than one lender during this process. Compare interest rates and loan terms as you work toward getting the best cash advance loan. Using the APR, ask yourself how much the loan will cost you long term. The APR represents the interest rate and other associated finance charges. 

Double-Check for Hidden Costs

Bad credit loans will come with higher costs than those provided to people with better credit. You should make sure you’re not getting taken advantage of, though. Read the loan agreement in full. Look for hidden costs that no one told you about during verbal communications.

Consider a Cosigner

If you’re finding it especially difficult to secure a cash advance, you may want to consider finding a cosigner for your loan. A cosigner is someone who agrees to repay the loan if you can’t. Some lenders who wouldn’t give you a cash advance based on your credit score alone will reconsider if you have a cosigner. 

Where to Get Cash Advance Loans With Bad Credit

Where can I get a cash advance with bad credit? That is a great question. Many banking institutions will help you get a cash advance with bad credit. Assess which type of lender fits best with your current banking relationships and choose from these types:

• Credit union
• Credit card company
• Online lender
• Traditional bank
• Friends or relatives
• Payday lender

Credit unions offer cash advances to their members at lower interest rates than traditional banks. Credit card companies will offer what’s called a merchant cash advance with bad credit. 

Getting an online cash advance with bad credit typically has less stringent qualifications than traditional lenders. However, a cash advance with bad credit online option may result in paying higher interest rates. 

You should probably consider friends, relatives, and payday lenders as the last possible options. Loans can sometimes cause good relationships to go bad. An instant payday cash advance with bad credit may seem attractive. However, payday loans cost the most. They typically have high-interest rates and require you to pay the loan back within two weeks. 

Takeaway

How can I get a cash advance with bad credit? Well, you now know that you shouldn’t automatically assume you can’t get a cash advance with bad credit. 

Use these tips to increase your chances of gaining approval for a cash advance loan. Compare bad credit cash advance interest rates and terms to find the best deal. Being proactive will help you secure an online cash advance when you have bad credit.

When you’re running a business, there are numerous things to think about. One of the most important is how you will finance your various business needs.

While many financing options exist, one of the best is getting a business line of credit. A business line of credit is different from a regular line of credit or a credit card.

In this article, we will discuss the differences when you’re choosing between a business line of credit or credit card and why getting a business line of credit might be the better option for you.

Business Line of Credit: What Is It?

You might wonder, what is a line of credit and how does it work? A business line of credit is essentially a business loan. You can think of it as a flexible, short-term loan that you can use whenever you need it.

One benefit of a business line of credit is that it works for various situations. Use it to finance inventory, pay for marketing expenses, or even cover unexpected costs.

Business Credit Card: What Is It?

A business credit card is a type of credit card designed specifically for business owners. One of the biggest benefits of using a business credit card is that they often come with rewards programs.

Pros of Using a Business Line of Credit

There are several reasons why using a business line of credit might be the better option for you. Here are some of the most significant advantages to choosing a line of credit vs loan options.

Added Flexibility

The best business line of credit options give you more flexibility than regular loans. You only need to repay the portion of the loan that you use. It works differently from a loan, where you may end up borrowing more than needed. The added flexibility to access only the cash that’s required at any one time means you gain additional control over long-term interest costs.

Build Credit History

A business line of credit can help you build your credit history. This is important because it can make it easier to get loans in the future.

Lower Interest Rates

Business line of credit requirements usually involve lower interest rates than business credit cards. Over time, this can save money on interest charges.

Cons of Using a Business Line of Credit

There are also some potential drawbacks to using a business line of credit.

Potential for Abuse

If you’re not careful, you can quickly find yourself in over your head when using a line of credit without planning ahead. It’s essential to only use a business line of credit when you really need it. Additionally, make sure that you always have a plan for repaying the loan.

High-Interest Rates

In some cases, using a business line of credit can result in paying higher interest rates. It might happen if you’re seeking a higher credit limit. As mentioned above, however, the interest rates are usually lower than those on business credit cards.

Pros to Using a Business Credit Card

In some situations, using a business credit card offers advantages.

Rewards Programs

Many business credit cards, such as a Chase line of credit, come with rewards programs that give you points for every dollar you spend. Redeem these points for cash back, travel, or merchandise.

No Personal Guarantee (in Some Cases)

Another advantage of using a business credit card is that sometimes there’s no personal guarantee required. Unlike a personal line of credit loan, you’re not personally responsible if the business can’t pay the balance. Keep in mind that these types of business credit cards aren’t easy to find. Most business cards do require you to personally guarantee the debt.

Builds Credit History

What is a credit line on a credit card? Similar to a bank credit line, a business credit card account will help you build your company’s credit history. Again, this can help you borrow larger amounts of money in the future.

Cons of Using a Business Credit Card

Here are some potential drawbacks to using a business credit card.

High-Interest Rates

Business credit cards usually have higher interest rates than other types of credit products. This can make it expensive to carry a balance on your card from month to month.

Annual Fees

Many business credit cards have annual fees, ranging from $50 to $500 or more.

Balance Transfer Fees

If you transfer a balance from one credit card to another, you will usually incur a fee.

Benefits of Having Both a Business Credit Card & a Line of Credit

Let’s take a look at why having both a business credit card and a line of credit can be beneficial.

One of the most significant advantages of having both a business credit card and a line of credit is that it gives you flexibility in how you manage your cash flow.

For a line of credit example, let’s say you have a large project that’s going to cost $20,000. You can use your business’s Bank of America line of credit to finance the project and then make payments over time. Alternatively, you could put the entire purchase on your business credit card and also pay off the balance over time.

Another advantage of having both a business credit card and a line of credit is that it can help you build your corporate credit history. When you make timely payments on both your business credit card and your line of credit, it will help to improve your company’s credit score. Use a business line of credit calculator to track how much you will owe and determine which plans offer the best interest rates.

Additionally, using both types of loans can help you save money on your business expenses. For instance, you might use a rewards business credit card to save money on things like travel and office supplies. Alternatively, you might finance a building addition with your line of credit because of a more favorable interest rate.

Takeaway

There are both advantages and disadvantages to using a business line of credit or credit card.

Ultimately, deciding between a business line of credit vs credit card depends on your specific needs and financial situation. Your credit score also plays a big part in the decision. For example, you may need options for the best business loan with bad credit.

Or, you might feel confused about what your current credit score will allow you to do with these types of loan options. Take time to apply now so we can advise you about the option that best fits your situation.

What Is Inflation?

Inflation is an economic condition that occurs when the prices for goods and services rise. This can be caused by a variety of factors, including increases in the cost of production, scarcity of resources, or excessive monetary supply. When inflation occurs, the purchasing power of a currency decreases, which can lead to problems such as increased prices and reduced economic growth.

There are a few different types of inflation, but the most common is demand-pull inflation. This happens when there is more money in the economy than there are goods and services to buy. This excess money causes demand for those goods and services to increase, which then drives up prices.

Inflation can be a difficult thing for businesses to deal with. When prices are rising, it becomes more difficult to turn a profit. In some cases, businesses may even have to raise their prices in order to keep up with the cost of inflation. This can lead to a decrease in demand for their products, as consumers may opt to purchase cheaper alternatives.

Inflation has been around for centuries, impacting the lives of people in different ways at different times. Some periods of high inflation have been more devastating than others. In the early 1800s, for example, America experienced a period of high inflation that caused a lot of harm to the economy. Prices for goods and services increased rapidly, making it difficult for people to afford basic necessities. The value of money also decreased rapidly, which made it hard for people to save money or buy property. This period of high inflation lasted for about 20 years and caused a lot of damage to the economy.

Why Are We Facing Record High Inflation Numbers in 2022?

One of the main reasons we are facing record high inflation is because of the monetary supply. The monetary supply is the total amount of currency in circulation in an economy at a particular time. The monetary supply can be increased in a few ways: by printing more money, by increasing the number of banknotes in circulation, or by increasing the reserve requirement. When the monetary supply is increased, the value of each unit of currency falls, and prices for goods and services rise, which is known as inflation.

Inflation can also cause economic problems. When the cost of living increases, people may find it more difficult to afford basic necessities. When it comes to inflation, businesses are the ones who usually take the biggest hit. Inflation causes the prices of goods and services to go up, and since businesses rely on these goods and services to operate, they have to raise their prices too. This can lead to a cycle of inflation and higher prices, which is bad for both businesses and consumers.

Are We Currently In a Recession?

For some, there’s no doubt that we are currently in a recession. For businesses, this recession has meant increased inflation and decreased profits. For consumers, it has meant increased prices and decreased purchasing power. The recession has also led to increased unemployment and decreased wages. Despite these challenges, however, there are still opportunities for businesses and consumers to thrive. By being creative and resourceful, both businesses and consumers can survive and even thrive during these difficult times.

Inflation Combined With Supply Shortages

For example, there is a current baby formula shortage in the United States that is leaving parents worried. The shortage is a result of rising business inflation that has caused several baby formula brands to run out of stock. This is leaving parents with limited options when it comes to choosing a baby formula for their child.

While the shortage is causing a lot of stress for parents, it is also a good opportunity for companies that produce baby formula. These companies are seeing a surge in sales as parents are forced to buy their formula from them.

Overall, the baby formula shortage is a result of rising business inflation. This is something that parents need to be aware of when choosing a baby formula for their child.

How Your Business Can Protect Itself Against Inflation

Inflation can have direct effects on businesses. For example, it can make it harder for them to compete with foreign companies, since their goods and services will be more expensive. It can also make it difficult for businesses to get loans, since lenders will be worried about how high prices could go in the future. Business owners are currently being squeezed in every direction by inflation.

Inflation is a serious issue for corporations. When the cost of goods and services rises, profits decline. This can force a company to lay off workers, cut back on production, or raise prices – all of which can hurt the company’s bottom line. In addition, inflation can also lead to higher interest rates, which can make it more difficult for a company to borrow money. All of these factors can have a negative impact on a company’s stock price.

Despite all of these problems, there are some things businesses can do to protect themselves from inflation. For example, they can try to keep their costs down by negotiating better deals with suppliers, or by investing in new technology that makes their production process more efficient. They can also try to increase their sales by targeting new markets or by developing new products.

Ultimately, inflation is something businesses have to deal with, but there are ways to mitigate its effects. By being proactive and taking steps to protect themselves, businesses can minimize the damage inflation can cause.

Inflation is on the rise!

According to the latest figures from the Bureau of Labor Statistics, inflation soared 8.3% in April, close to a 40 year high. This is the highest annual rate of inflation in 40 years. The main drivers of the increase were prices for gasoline and shelter.

The CPI measures the average change over time in the prices paid by urban consumers for a fixed market basket of goods and services. In other words, it’s a measure of how prices are changing for everyday items like food, clothing, and transportation. When the CPI goes up, it means that the cost of living is increasing.

This latest report is a reminder that we need to be vigilant about inflation and take steps to protect ourselves against its effects. One way to do that is to make sure that we have a diversified investment portfolio that can help us ride out the ups and downs of the economy.

Starting a car wash business can be exciting and profitable, but it is a complex industry with lots of expensive equipment and other business aspects to manage.

Financing your business is by far the most challenging part because your plans need to be solid leading up to that step.

We want to go over the basics of how to start a car wash business, focusing on finances and solidifying your business plan.

How To Get Money To Buy A Car Wash

If you are going to buy a previously established car wash, you will probably need an investor or lender to loan you money for the purchase. Some states may offer car wash grants to get you started on the right path.  It is essential to have enough money to cover marketing costs and general monthly expenses for the first year of your business.

First, you will need a solid business plan to show investors that you can pay them back when the business gets going. In this plan, consider your financial needs, such as land purchase requirements, machine leasing, or long-term lines of credit.

For your business plan, write down basic industry feasibility data, your company mission statement and vision, and your marketing strategy. Write down your baseline car wash prices to determine your break-even points, which you will base on utilities and property lease prices.

Analyze the car wash market in your area. What are other car washes doing to be successful? Compare prices, equipment, trends, and themes, and analyze existing demand for your business. Part of owning your own business is knowing what the competition is doing and how you might do it better.

Finally, clearly outline your funding requirements. Explain how much funding you will need over the next five years and what you will use that money for. Be specific about your needs, such as equipment, salaries, or covering bills until your business can pay for them.

Also, describe your future strategic financial plans, such as paying off debt or loans or selling the business.

In short, convince your lender that your business has a solid financial plan and will succeed enough to pay off loans or debt.

An excellent self-service car wash business plan details everything from marketing strategies to financial forecasts. A few graphs or charts might also help to illustrate your plans.

Some banks or firms have teams for car equipment financing, so search for one in your area. You can apply for a small business grant to finance your business. A grant is not the same as a loan: you do not need to repay a loan. Plus, most grants for small businesses occur through the federal government’s Small Business Administration (SBA).

Type of Car Wash

Your business plan should also detail what kind of car wash you are starting up. A hand-wash car wash has vastly different expenses from an automatic car wash, so you need to get specific about those expenses.

Break down what equipment you will need for each type of car wash and see what your total cost is. For example, a hand-held car wash might only take a few hundred dollars to start. A self-service car wash may take up to $200,000 because of the complex equipment and building costs.

With these different car wash types, the cost of starting a car wash business can vary too. For starting a simple business, you might need roughly $50,000, whereas a larger business venture may require up to $3.5 million.

Car Wash Business Ideas

Exploring new opportunities for your business is a great way to hit the ground running and start earning money.  When we say “car wash business ideas,” we mean what you can add to your car wash business to make the customer experience simpler or more appealing.

Some businesses have added food trucks for customers needing a quick bite. Similarly, if you have a lobby where customers wait for their car, consider adding free snacks or a coffee machine. Games for kids and magazines can help entertain guests as well.

Be sure to optimize your Google listing since that is the most likely place for customers to find you. Use Google My Service to add hours, photos, reviews, and other information to sell your business to a curious new customer.

Starting Your Car Wash Business

Once you have the financing necessary to start your business, you still need to take a few extra steps.

Start a limited liability company or LLC, so you will not get held personally liable if someone sues your car wash business.

Next, you will get your car wash business registered for taxes. You will need to apply for an EIN through the IRS website or fax or mail. Depending on the business structure you choose, such as an S corporation, there are different options for how your business will get taxed.

A business bank account and credit card will further protect your business legally. Do not mix your personal and business accounts. Set up accounting for your business to keep track of your profit and expenses.

Obtain the proper licenses and permits to run your business, as well as business insurance. All these steps help protect your business in case of a lawsuit or if your business suffers a loss.

How Profitable Is A Car Wash?

To put it simply, a car wash can be quite profitable in the right area, and with the right management and marketing strategy. Small-scale car washes could see an average profit of $40,000 a year, while luxury car washes can see an average profit of $500,000.

Final Thoughts

Starting your own car wash business takes a solid plan and a lot of research. Fortunately, the demand for car wash businesses never really changes, and you should be able to set up shop almost anywhere.

As long as you know your business’s strengths and weaknesses, financial forecasts, and market strategy, you should have no trouble getting financing for your car wash business. For more information on growing your business from the ground up, you can learn how to grow a property management business and how to grow a dropshipping business on our website.

Finding the right financing options is a major challenge for small businesses. Many small enterprises, including startups, don’t yet have collateral. In some cases, their structure requires a flexible lending option.

This is where short-term business loans come in. Unfortunately, you probably won’t have much luck at the bank. In fact, an average of a minimum of 80 percent of small business loan applications at banks are rejected. Fortunately, however, there are other options.

With a reputable non-bank short-term business loan option, you enjoy accessibility and versatility. Here’s everything you need to know about how to get a business loan without collateral or a stellar credit score.

What are Short-Term Business Loans?

A short-term business loan (also referred to as a short-term commercial loan or SBA loan) is a loan that you pay back over a short (or relatively short) repayment period. This period may range from three months to as long as three years.

Businesses that have trouble qualifying for a small business loan find that they are eligible for short-term business loans. But don’t just jump into a loan with a blindfold on. Always do your research and find out how reputable (or not) a lender is before you enter a loan agreement and accept the funds.

If you’re looking for short-term business loans with bad credit, make sure you find a reputable lender. Sadly, there are many fraudulent actors in the short-term loan industry.

Always take the time to research prospective lenders before even considering entering a loan agreement with them. Get fully acquainted with the lender as well as the loan and its terms. If you’re wondering, “Do mutual savings banks offer short term business loans?” be sure to check with a local branch.

Short-term business loans are often a useful tool for small businesses. After all, small businesses face frequent obstacles regarding long-term loan options.

How Does Short Term Financing Work?

With a short-term business loan, you receive the full loan amount as soon as you’re approved. Like with other traditional term loans, you are required to pay back the loan over a set period of time. Short-term loans have shorter loans.

If you go with a short-term line of credit, you have access to the cash, but you don’t have to take all of it. You have it there to draw on whenever expenses come up. If you have a short-term line of credit, you get the advantage of this cash access over a set short-term period.

How to Use Short-Term Business Loans

There are specific circumstances in which a short-term business loan may be a good choice for your enterprise. For example, an emergency may arise that you need funds to cover. Seasonal businesses sometimes use short-term business loans to keep them going during slow months.

You have one major focus to get a short-term business loan without collateral. You’ve got to show prospective lenders that you’ll probably be able to repay the loan in time. Show them your business plan and other evidence of your business’s success and likely continued success.

Short Term vs Long Term Business Loans

You pay the money back over a shorter term with a short-term business loan. Long-term business loans mean you have a much longer period to pay back the money.

Short-term business loans are more versatile because of their accessibility. Many companies unable to qualify for long-term business loans often get approved for short-term financing.

Short-Term Business Loans: Advantages and Disadvantages

Let’s explore some of the advantages of short-term business loans below.

More Accessible

Most small businesses, especially startups, don’t yet have any collateral. This is what makes long-term loans so inaccessible for them. You won’t have to worry about that requirement when you go the short-term business loan route.

While short-term loans are certainly the more versatile option, you do need your ducks in a row before you apply. Make sure you have all the necessary documentation at hand when putting together your application. You will usually need information on your credit scores, business banking records, and monthly sales volume.

Of course, short-term business loans have certain disadvantages. Here they are below:

Larger Monthly Payments

As short-term loans involve less time for repayment, the monthly payments are often larger. Of course, each payment you make includes not only the loan itself but also fees and interest. As long as you consider these larger payments when making your financing decision, a short-term loan may be the best option for you.

Higher Interest Rates

Short-term loans tend to have higher interest rates than long-term loans. Look for a short-term business loan with a between 5 and 15 percent interest rate. Stay far away from loan predators with predatory interest rates. In some cases, their interest rates may go as high as 200 percent in some cases.

Short-Term Business Loan Interest Rates

Short-term business loan interest rates are higher because they have more risk for the lender. That is a result of the fact that they don’t require collateral and don’t have the same stringent requirements as long-term business loans.

While you’ll have to be ready to pay a bit more in interest rates, don’t fall prey to exorbitant rates. There are plenty of dishonest characters in the short-term loan industry. While you will probably have to pay an interest rate of between 5 and 15 percent, don’t even consider going with anything much higher.

Best Short-Term Loans for Startup Businesses

Short-term business loans are the ideal option for startup businesses. But you’ve got to choose the right kind. Rok Financial has all the best small business loans with short-term contracts. We have short-term options for short-term loans, starting at six-month terms. Once you’re approved, you get the funds in one to three days.

Rok Financial also has options for short-term lines of credit, starting at six months. Your startup will benefit from a revolving line of credit starting at $10,000, and if you’re approved, you get access to this money in one to three days. A line of credit is a valuable tool for startups. If you have an emergency or need to buy new equipment to expand, you have the funds there.

When you take out a long-term loan for your business, you gain access to a large amount of money meant for meaningful investments in your enterprise. Most long-term loan repayment periods range from three to ten years. If you get an SBA loan, your term may extend even to 25 years.

What are Long-Term Business Loans?

Long-term business loans are term loans with a more extended period for repayment than you would get with a short-term option. You get access to more advantageous long term business loan terms and rates than with short-term loans.

Businesses usually get long-term loans for large and expensive acquisitions and purchases. Examples include significant equipment and buildings.

Types of Long Term Business Loans

A term loan with a repayment period of between three and ten years is the main kind of long-term business loan. With this kind of loan, you get all the money as soon as you’re approved.

A line of credit is different from a term loan, but it may also be long-term. Like with term loans, there are business lines of credit available that may last up to ten years. With a line of credit, you simply have money available. You aren’t directly given it, and you don’t have to use it.

Qualifying for a small business loan involves certain requirements. To be approved for a long-term loan at ROK Financial, you must have been in business for at least three months. Additionally, your monthly gross sales must be at least $15,000 (or your annual gross sales must be at least $180,000).

What is an SBA Loan?

SBA long term business loans are like regular term loans with one crucial difference: they’re backed by the U.S. government. This backing means the lender doesn’t face any risk, helping bring down the borrower’s interest rates.

SBA loans offer terms as long as 25 years. The minimum term of a long-term SBA loan is ten years. The amount of money you may borrow with a long-term SBA loan ranges from $50,000 to $5 million.

Difference Between Short Term and Long Term Business Loans

If you want to borrow money to cover large investments for your business, such as purchasing major equipment or buildings, you need a long-term loan rather than a short-term loan.

Long-Term Loans Have Smaller Payments

A long-term loan means you’re paying back the loan over a longer period, you will usually make smaller monthly payments than you would with a short-term loan.

Long-Term Loans Offer Lower Interest Rates

You’ll usually enjoy lower interest rates with a long-term loan. This is because these loans have more stringent application requirements, and they are well-secured. For example, if you get a long-term loan to buy a building, the building will be the security for your loan.

Long-Term Loans are Harder to Qualify For

You have to provide documentation showing your personal and business financial situation when applying for a long-term loan. Long-term loans from banks are especially difficult to get. That is why many businesses, especially small businesses, turn to alternative lenders.

The best small business loans are responsive to your circumstances and needs. If you go apply for a loan from a non-bank, alternative lender, make sure it’s reputable.

How to Determine the Repayment Period of Long Term Business Loans

When it comes to small businesses, long-term loans usually have repayment periods that range from three to ten years. However, there are certain options, such as SBA loans, that have much longer terms. In some cases, these loans may have 25-year terms.

Several different factors will influence how to determine repayment periods for long-term business loans. Examples include:

• Financial information for your business
• What the funds will be used for
• Lending institution type
• Terms and guidelines specific to your lender

If you get a long-term business loan through an alternative lender, the repayment period is likely to be between one and five years. If you manage to qualify for a bank loan for your business, the term may be a bit longer, at an average of between five and seven years. With SBA loans, the term usually ranges from six to 25 years.

What is the Usual Repayment Period for Long Term Business Loans?

There is no such thing as a typical repayment period for long-term business loans. Why? As touched on earlier, several factors go into deciding your long-term loan repayment period. Every business is different and has a different financial and credit profile, and lenders take this into consideration when formulating the correct repayment period.

Long Term Business Loan Interest Rates

The interest rate for your long-term business loan will depend on a variety of factors. To put things simply, the higher the risk lending to you presents, the higher your interest rate will be. If you want to enjoy low-interest rates, you must show you are reliable and able to repay your loan.

Interest rates for business term loans average between two percent and 13 percent. If you get an SBA loan, however, the range is between 3.5 percent and 11 percent. As we see, SBA loan interest rates are a bit more predictable.

How to Get a Long Term Business Loan

The first step is to understand all the small business loan requirements and contact ROK Financial. We offer long-term loans with up to 10-year terms. Have questions? Talk to one of our Business Financing Advisors. And when you’re ready to apply, complete our quick and easy online application.

Approximately 82 percent of small and medium-sized enterprises fail due to cash flow problems. Of course, several factors can affect your cash flow. An aging accounts receivable or invoices that are past their due dates may account for a fair share of your cash flow challenges. 

Luckily, there are financial tools and different forms of asset based lending you can use to manage your cash flow gaps. Invoice factoring is one excellent solution to your cash flow challenges if you’re a business owner with net 30, net 60, or net 90 terms with buyers.

Read on to find out whether invoice factoring is right for your business and how to compare invoice factoring vs line of credit.

What Is Invoice Factoring?

Invoice factoring is the financial solution commonly referred to as accounts receivable factoring. In this form of financing solution, a business sells their accounts receivables (pending invoices) to an external financing company (factor) at a reduced price. The invoice factoring company then makes cash immediately available to you.

Typically, the factor gives you approximately 70 to 90 percent of your unpaid invoices upfront, instead of you having to wait for 30, 60, or 90 days. Once the factoring company collects the dues from your customers, it pays you the rest of the money. 

A factoring fee applies as payment for the factor’s service. Remember, invoice factoring is not a loan. It’s simply a quick way of generating cash today to cover the costs of your day-to-day operations or expenses.

How Does Invoice Factoring Work?

Although the procedure varies from one provider to another, it starts with your business applying for invoice factoring. This is no different from applying for any other type of funding.

So, how do small business loans work? Once the factoring company approves you for a factoring agreement, which typically takes about a day, you’ll have to submit your invoice to the factoring company. In exchange, the factor transfers the agreed cash to your business bank account within no more than two days. 

The quality of your invoices and the invoice factoring startups you choose to work with determine the percentage of cash you get upfront.

The good news is that no interests apply to invoice factoring. It’s not a loan. The factor pays you the remaining amount minus the factoring fees once your customers pay their outstanding invoices.

Factoring companies will still welcome you if your business has poor or no credit. That’s because they’re more interested in your customers’ financial stability during the approval process. Therefore, as long as your customers have a reputation or solid track record of paying their invoices timely, chances of approval for invoice factoring are high.

Invoice Factoring Example

Let’s say you own a store and sell goods to another business on credit. If the goods are worth $20,000, you write them an invoice of this amount. 

If your customer agrees to pay off the invoice in 60 days, but you need this cash in two weeks to cater for expenses such as paying your workers, it means you have cash gaps.

Now suppose you turn to invoice factoring, and the factor agrees to buy your invoice, you can expect the following terms:

• The company buys for $18,000 in cash.
• An invoice factoring fee of four percent applies. This amount equals $800.
• The factor deposits 80 percent of the invoice to your business account within two days. That’s $14,400.
• After the factoring company receives the payment from your customer after 60 days, it pays you the balance it owes you ($ 3600).

Pros and Cons of Invoice Factoring

Below are the advantages and disadvantages of invoice factoring for small businesses.

Pros

The benefits to invoice financing for small businesses include the following:

Quick Cash

Invoice factoring can get you the money you need to run your day-to-day operations within two days. Unlike bank loans which can take a long time to approve and finance, you can receive same-day funding. That way, you can still improve your cash flow, helping your business grow while at the same time retaining your loyal customers who prefer longer payment terms.

Approval Is Easier

Poor or lack of credit, limited operating history, or lack of collateral can hinder you from acquiring funding from sources such as banks. Fortunately, invoice factoring can provide you with financing even in such situations. Factoring companies focus on your customers’ creditworthiness and the value of the invoices.

No Collateral

The invoices are enough collateral. So, you don’t have to worry about using your assets, such as inventory or real estate, as security for the funding.

Cons

Online invoice factoring has some negative qualities as well, which are outlined below.

High Cost

The fee can be a limiting factor. A factoring company will charge an invoice factoring fee of one to five percent of your total invoice amount. This is a significant amount. You’ll need to consider if the tradeoff for instant cash is worth such a loss. 

Limited Control

You leave it to the factor to collect on the invoices. That means you lose direct control of your customers. Always ensure the factoring company you’re working with is fair and ethical when handling your customers.

Eligibility for Invoice Factoring Largely Depends on Your Customers 

If their payment history is solid, the risks on the factoring company’s side are low, and they’re likely to approve you. If the situation is the opposite, chances of the company taking you are slim. The risk might be too much.

Invoice Factoring Fees

Cost is a crucial factor when considering factoring as a source of your business funding. As mentioned earlier, you’ll incur a factoring fee of one to five percent. Negotiations about the percentage will revolve around several factors, including:

• The factoring company you choose
• The number of invoices you’re factoring
• Your industry
• Your customers’ creditworthiness

You may have to pay additional fees in addition to the basic factoring fee. These include processing, monthly minimum, ACH, application, and servicing fees. These costs also vary from one provider to another.

What Is the Difference Between Invoice Factoring and Invoice Financing?

The difference between invoice factoring and invoice financing is not significant. 

You see, instead of selling your company’s invoices to a factor, you use your outstanding invoices as collateral, allowing you to get cash in advance.

Also, the responsibility of collecting invoice payments lies with you. Once your customers pay you, you’ll repay the lender the amount you owe them plus the agreed interest and fees.

No doubt, invoice factoring might be an ideal financing solution for a business line of credit construction. It will work well for you if you require fast funding for your business. Just remember there’s a fee you must pay upfront, and your clients must be creditworthy. 

When studying the economy, three interest rates control lending to banks, mortgages, and consumer loans. The three terms that often get confused are federal funds, prime, and discount interest rates, which helps with understanding SBA loans. 

Anyone wanting to know how the economy works needs to know what are the discount rate, the federal funds rate, and the prime rate and why they are important. 

What Is the Discount Rate?

The discount rate is an interest rate the Federal Reserve charges for discount loans. This is the rate the Fed sets, so member banks can borrow money overnight if they need funding. The Fed sets the rate to allow banks to borrow so banks don’t fall below their mandated reserve levels. 

The discount rate is also called the primary credit rate. The Federal Reserve sets this rate so banks can borrow money if they lend too much or have too many withdrawals on any given day. Banks borrow the money at the discount rate overnight to cover their overdrafts. It also helps with PPP tax explained. 

Discount rates also affect mortgage rates. When the discount rate increases, the mortgage interest rates increase. The 10-year bond rate also affects mortgage interest rates. 

The prime rate also is affected by the discount rate. When the prime rate increases, consumers tend to slow their demand for new loans. The result is a slowing housing market and economy. When the Fed lowers the discount rate, the prime rate decreases, and banks can choose to lower their mortgage interest rates, too. 

The Federal Funds Rate and the Prime Rate and Why Are They Important? 

The Federal Reserve Bank also sets the prime and the federal funds rate. Banks can borrow from the Federal Reserve, and they can borrow from each other. With the Federal Funds Rate, banks can borrow from each other and charge interest. 

What Is the Federal Funds Rate?

The Federal Reserve sets a target rate and manages it by buying and selling government bonds. They use the federal funds rate to control inflation by managing available funds that banks borrow from each other. They can use the reserves to give more loans to keep the economy going. 

What Is the Prime Rate?

Along with the Federal Funds Rate, the prime rate is also important. This rate is for borrowers who have the best credit and the lowest default risk. Individual borrowers usually don’t get loans at the prime rate, but large corporations do. Because corporations rarely default, banks can charge the lower prime rates rather than the higher rates they charge to high-risk customers. 

The prime rate is also a benchmark for consumer loans. Commercial banks put an additional interest rate on top of prime when they award loans to their customers. This additional amount is called a margin. 

For example, if prime is two percent and banks add a margin of three percent, borrowers pay a five percent interest rate on their loan. Banks use credit scores to determine how high to set the margin.

Why Do These Rates Matter?

The two rates let the Federal Reserve speed up or slow down the economy. When they rate the Federal Funds Rate, banks stop borrowing from each other. They also slow their lending to consumers and corporations. 

When the Fed wants to speed up the economy, they lower the Federal Funds Rate to get consumers spending and banks lending. Mortgage rates do not have to follow suit because other factors affect mortgage lending. 

How Is the Federal Fund Rate Established?

The Federal Fund Rate fluctuates based on the supply and demand. An organization called the Federal Open Market Committee determines the rate based on a target that depends on funds and what banks need to cover their loans. 

Banks need to have a reserve requirement for their deposit liabilities. The reserve funds sit in the Federal Reserve. Interestingly, all of the dollar amounts are on paper, as the Federal Reserve and banks do not exchange physical cash. Bank reserves must be a percentage of their total liabilities. Often, the percentage is as small as three percent. 

Who Sets the Federal Fund Rate?

The Federal Reserve also sets a target for the Federal Fund Rate by moving U.S. Treasury securities. As the Federal Reserve Bank buys more securities, the Federal Fund Rate falls. The opposite happens when the Fed sells its securities, as bank reserves fall, causing the Federal Funds Rate to rise. 

The process of setting the Federal Fund Rate is complicated, as it sets important monetary policy. 

Federal Funds Rate vs. Discount Rate

Since the Federal Funds Rate and the Discount Rate do similar things, it is helpful to understand the differences. The Federal Funds Rate is the rate that banks, credit unions, and other financial institutions charge each other for short-term, overnight loans. When the Federal Reserve Bank gives a loan, they charge the Discount Rate.

Is the Federal Funds Rate Higher Than The Discount Rate?

The Federal Funds Rate tends to be lower than the discount rate. Looking at the Federal Funds Rate vs. Discount Rate vs. Prime Rate, the lowest is the Federal Funds Rate. When the Federal Reserve Bank charges the Discount Rate, the percentage serves as collateral, so the bank repays the Fed. 

What Is the Relationship Between the Federal Funds Rate and the Prime Interest Rate?

The Federal Funds Rate does not directly affect the Prime Rate. However, Prime Rate tends to change if the Federal Funds Rate changes. The Federal Funds Rate and Discount Rate work together to help financing institutions stay flush with cash. 

Why Doesn’t the Federal Reserve Target the Prime Interest Rate?

The Federal Reserve gives banks some leeway with the Prime Interest Rate. Banks use the Federal Funds Rate as the target, then adjust accordingly. The prime rate is 300 points or three percent above the Federal Funds Rate. Variable interest rates are connected to the Prime Rate, and banks can set their own prime rates. Banks can also choose the published Prime Rate. 

What Is the Prime Rate Today 2022?

The Prime Rate today is 3.25%, 300 points above the Federal Funds Rate, which is between 0% and 0.25%. This rate determines how banks set their prime rates because they don’t have to follow a set rate, so they can set variable and fixed rates. 

Why Learn About Economic Interest Rates

Understanding the difference between federal funds, prime, and discount interest rates helps consumers understand how the economy moves. When the federal funds’ rates change, bank deposits like savings accounts and money market accounts have changes in interest. It has a major effect on adjustable rate mortgages.