Credit Cards Could Be A Wise Investment In 2010 |
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| By: Kevin Mahoney | ||||
Right now banks are being tight with their lending policies, leaving many entrepreneurs and established businessmen alike feeling the pinch. However just because lending has dried up doesn't mean you can't make use of a commercial credit card; it just requires a new approach. That's where secured corporate credit cards come in. With a secured commercial credit card your corporate can make use of all the fantastic power of a credit card without having to pass the new, more stringent requirements for the normal lending of credit. Instead of having to qualify for credit you simply have to provide an initial security deposit on your account. The best thing about secured cards is that the risk is severely limited for both you and the card issuer. Should your commercial need the inability to pay your bill, or should you ever need to be free of your card debt, you can simply request that the account be closed and the outstanding amount be paid with the security deposit. I know it sounds crazy but it really is that simple. By having your card limit set to be the same as the amount of money you deposited with the bank as you opened the account it limits the risks. You are effectively putting a limit on your your losses rather than trying to absorb the major additional costs that can occur with long term interest and fees if you ever don't make payments. Limiting your corporate risks and staying competitive is the name of the game in a recession economy, and a secured card will help your business do both. Having to make interest payments on debt can push your commercial from profit into loss. Don't ever discount how quickly interest charges can mount up and how much damage they can do to your companies cash flow. Aside from the risk limiting feature, you gain all the benefits of credit card use; such as soon as greater fraud protection than debit or cash, and painless record keeping. |
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| Article Source: http://yourfinance.co.za | ||||
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