Finance/Capital Access

As a merchant it is important to keep abreast and know where the future of credit cards is heading. It is with this in mind that we review four important trends of innovation and technological advancement in the credit card space.

Multi-function Cards

A common challenge faced by the global credit card industry is combating attrition and diminishing wallet share, particularly as the use of debit over credit continues to increase. Historically, rewards programs were used to encourage consumers to choose a particular card over another. As these programs decrease in perceived value, issuers are searching for another tactic to encourage customer loyalty. One way is with a single, multi-function card.

Multi-function cards have the capability of giving the holder access to multiple accounts on a single plastic. The most common multi-function card structure gives consumers the ability to access both a debit and credit account on the same card. While multi-function capability has generally been used to enable consumers to choose between credit and debit accounts, the functionality can also allow different categories of accounts or different modes of credit to be accessed. (more…)

Jargon within the payments industry can be extremely confusing. Have you ever stumbled through a document that mentions ACH, EMV, CVC and MICR all in the same paragraph? We know the payments industry isn’t the friendliest of authors and, while we can’t make all of the financial institutions, processors and authorizers out there toe the line on a new, friendlier way of speaking, we can give you the tools to speak their language.

Have you ever stumbled through a payments industry document? Jargon and abbreviations can be extremely confusing. We know the payments industry isn’t the easiest to understand, but we can give you the tools to speak their language.

A

ACH: Automated Clearing House. A regional organization used by member banks to electronically transfer funds between members.

AMEX: Abbreviation for American Express®, an organization that issues travel and entertainment cards and acquires transactions. (more…)

While crowd-funding sites have opened the door for many entrepreneurs that otherwise couldn’t obtain outside financing, it’s still not the best option for everyone. This would apply to entrepreneurs with a highly confidential business model. However, you shouldn’t always consider the absolute worst case scenario when sharing your ideas with others. A crowd-funding site may provide you with instant market feedback that you may not gain from an individual investor or a consortium of angel investors. So, what are your other options?

Explore Angel Networks

Have you reached out to accredited investors in the angel community? Nowadays, there are many online angel communities such as AngelList and Gust that provide early stage companies with immediate access to accredited investors and vice versa. (more…)

By Nicole Russo, Marketing Director

Credit scores, including credit history, are one of the primary factors in obtaining the best SBA loan offers and terms. Every small business can benefit from tips to improve credit scores.

While a new business has no alternative but to rely on the personal credit score of the owner, it is good practice to build a business credit score as quickly as possible. Business credit is comprised of rent or mortgage payment history, tax payments, equipment financing, credit cards in the business name and any other related credit payments. Businesses need a tax EIN in order to build credit, and can also apply for a Dun & Bradstreet DUNS number.

A Commercial Credit Score (CCS) through Dun & Bradstreet is used by banks and lenders to determine the likelihood of a business paying its obligations on time. The score ranges from 101 to 670, with 670 being the highest score. (more…)

What do established companies looking to expand and start-ups in the earliest planning stages have in common? They want access to money and credit without having to provide a personal guarantee. This sentiment is consistently and strongly expressed by entrepreneurs I work with. It’s no secret that building and expanding a business credit profile has become a greater challenge over the last few years. Many established small companies’ cash flow sheets were hit hard during the recession and as a result, many lenders and suppliers have either added a personal guarantee policy or modified their current policy.

Most business owners know Experian, Equifax and TransUnion as the three major credit bureaus that provide information about their personal credit; however, they also may provide a credit profile about your company’s creditworthiness. Dun & Bradstreet (D&B) is the most well-known provider of business credit profiles among business owners because their business model serves them, whereas Experian, Equifax and TransUnion primarily exist for the benefit of creditors. (more…)