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August 5, 2019

How To Get Your Credit Report For Free

Monitoring your credit history is an important habit to foster. Credit can affect many parts of your life, from getting loans to applying for credit cards to employment. Plus, frequent credit-checking can give you a heads up if your identity is stolen. As such, it’s wise to keep eye on what’s going on in your sphere of the credit world.

This is where AnnualCreditReport.com comes in, paving the way for you to access your credit reports from the three major credit bureaus. Luckily, the service is a free (and federally-approved!) way of checking your credit reports once every year. Read on below to find out how AnnualCreditReport.com works!

What Is AnnualCreditReport.com?

AnnualCreditReport.com is a website where you can request credit reports from each of the three major credit bureaus: Equifax, Experian, and TransUnion. The website’s service was mandated in 2003 by the federal government as part of the Fair and Accurate Credit Transactions Act (FACTA). This act amended the Fair Credit Reporting Act’s (FCRA) consumer rights law, which was enacted in 1970.

Under FACTA, you’re able to request each of the three reports once every 12 months. AnnualCreditReport.com is authorized by the federal government to provide users with the ability to request those reports. The site is maintained by Central Source, LLC and is sponsored by Equifax, Experian, and TransUnion.

Just so we’re on the same page, AnnualCreditReport.com’s homepage should look like this:

There are similar websites out there that advertise similar features and have similar names. However, AnnualCreditReport.com is the only site authorized by the federal government to deliver free credit reports.

How To Get Your Report

Getting your report through AnnualCreditReport.com is a fairly easy and mostly harmless process. Here is a step-by-step guide to requesting your report from AnnualCreditReport.com:

Once you’ve loaded AnnualCreditReport.com’s home page, click “Request your free credit reports”.
You’ll then need to fill out a form that includes various data about yourself, including your name, birthdate, Social Security number, and address.
After entering your personal details, you can choose to request one, two, or three reports.
Each report will require a different approval process; however, you’ll generally be asked a set of personal security questions. Note that you’ll be directed away from AnnualCreditReport.com and will complete the process on each credit bureau’s own website.
After you’ve generated your reports, you’ll be able print them or save them to your computer.

If, for whatever reason, you are unable to request your report online, you have two more options:

Request by phone

The next quickest option is by phone. You’ll need to call 1-877-322-8228 and go through the verification process over the phone. You should receive your report through the mail within 15 days.

Request by mail

You can also send your request via the good old-fashioned postal mail. To do this, you’ll need to download a request form through AnnualCreditReport.com. Once you fill out the form, mail it to this address:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

What To Look For When You Get Your Reports

With so much information, your credit report might be confusing at first glance. Between numerous accounts and numerous payments on those accounts, there’s simply a lot of stuff to go over. To help you on your way, here are a few of the key things to look out for when you peruse your report:

Accounts you don’t own or didn’t authorize. This is the big one. If you notice an account you didn’t sign up for, it could mean someone has stolen your data and is using it for fraud.
Incorrect data, such as misspelled names or addresses, or other inconsistencies like wrong opening dates for accounts. If the information you see is incorrect, you’ll need to reach out the bureau with the problematic information (see below).
Negative information. If you spot something negative, you’ll want to understand how you might be able to correct this. Negative marks on your credit history could impact your ability to sign up for credit cards or take out loans.
Negative information that shouldn’t be included because it’s too old. For instance, bankruptcies older than seven years should be dropped from the report. Again, you’ll need to reach out to the bureau in question to correct the error.

What To Do If You Find Mistakes

If you spot an error on a credit report, you’ll need to file a dispute with the credit bureau in question via regular mail or the organization’s online reporting tools. Note that it may take up to 30 days for a bureau to investigate the dispute, plus you’ll need to wait two weeks for them to contact you with the results. With this in mind, it may take up to 45 days before you find out the results of your dispute.

For a deeper dive into how to dispute errors, visit the Merchant Maverick article on the subject.

Are There Disadvantages To Using This Service?

As to be expected, things aren’t all peachy when it comes to using AnnualCreditReport.com. Here are a couple of things to look out for (although they really shouldn’t stop you from using the service):

AnnualCreditReport.com only provides a service for getting credit reports — not credit scores. If you’re after your score, you’ll need to check out a free credit score site.
Credit bureaus have longer to respond to disputes.
Once you’ve gone through the approval process, you may see offers from Equifax, Experian, and TransUnion. These offers are not necessary to view your credit report and should probably be ignored (unless they make sense you personally).
Reports can only be accessed once every 12 months. This certainly is a downside; however, there are plenty of other services out there that can help you monitor your credit report on a more frequent basis.

All told, AnnualCreditReport.com is an excellent tool — despite any potential negatives. It lets you check your credit reports annually, helping you spot if anything is amiss before things get too out of hand. If you haven’t already signed up through AnnualCreditReport.com, it’s highly recommended that you do so at some point in the future.

The post How To Get Your Credit Report For Free appeared first on Merchant Maverick.

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August 2, 2019

Merchant Maverick Interviews Clover CEO John Beatty

Clover continues to be on the cutting edge of trends in the point of sale industry. Within the past year, it has released both new hardware and new software and is adding more services under its already large umbrella. Clover co-founder and CEO John Beatty recently sat down with Merchant Maverick to discuss some of their newer developments and where they see the company headed in the coming months.

On New Clover Products

Clover recently launched its restaurant-specific software, Clover Dining, on the heels of the release of the second generation of its popular all-in-one system, Clover Station. Clover Dining combines a sleek interface with specific restaurant-centric features that Clover hopes will help it become an even more significant player in that industry.

Along those lines, Clover also has released Clover Flex, a mobile ordering unit that frees up employees from a standard desktop unit. Clover Flex is compatible with Clover Station and gives businesses the ability to offer tableside ordering in restaurants. It also gives employees the flexibility to roam around a retail space helping customers and processing payments from anywhere on the floor.Â

According to Beatty:

Itâs a smaller, more affordable form factor that can be used as a payment terminal, as a replacement for a countertop payment terminal, or it can be used for a mobile payment terminal, or it can be used as a full mobile point of sale device to do order and pay at the table, which has been a fantastic complement to our full-service restaurant product offering.

On Clover Dining

On its website, Clover has a pair of purchasing options for Clover Dining: Clover Station plus Clover Flex for larger, more traditional full-service restaurants, and Clover Mini for smaller establishments. Both have an integrated card reader with chip card functionality, freeing up counter space.

Beatty says:

Our hardware strategy was very much driven by the desire to have a best in class product for restaurants, which in the US means a large screen device that has the chip card reader integrated because, in the US, that’s still the predominant workflow. They take your card back to the back counter, where they have the large screen order entry payment device. And so Clover Station has a chip card reader built-in. Virtually everyone else has a device with some other peripheral attached to it, which we think is just less elegant. It’s more pieces to manage. It’s just more complex.

It has also designed its product to maximize efficient turnover in restaurants and to help businesses run effectively with smaller staffs.

We have a flat, per-location pricing structure, so if you want to get, say, three stations and add 20 Flexes or 30 Flexes for maximal efficiency, you can do that, and the SaaS fee doesn’t change. There’s no cost or penalty for adding additional devices onto your service plan.

On Clover Integrations

Clover is making a big push to streamline as many services as possible for its customers. As such, it has expanded its offering of integrations and added some major players across multiple platforms. Clover now integrates with Gusto to help businesses with their payroll and benefits. It also has a new partnership with Nav, a company that, in part, monitors the credit scores of small businesses. They also offer services that can help businesses determine the proper amount of insurance they might need to make sure they are adequately covered.

According to Beatty:

…the theme of both of those is really that Clover’s becoming a one-stop-shop and dashboard for managing your entire business, and really streamlining your entire operations. So those are some of the big thematic things we’ve been doing on the product side, in the past year.

On Clover Hardware & Processing Bundles

One of the more unique things about Clover is that, in the past, you needed to purchase its products with a merchant account, meaning that thousands of banks and merchant services suppliers could offer the product, often at slightly different hardware and processing costs. However, Clover is looking to simplify this process for interested customers as well. Clover.com has recently gone live with the ability to purchase bundles directly on its website with transparent costs and fees.

Beatty explains:

We certainly recognize that there’s a segment of buyers out there, that they want simple, easy, transparent, and self-service, where they just can come to clover.com, they can see the prices, they can see the hardware prices, they can see the processing rates. Everything is bundled all in one.

Clover appears to be committed to innovation in all facets and bettering its products for its customers. Beatty says that the company currently has no plans to open up its payment options to other processing companies besides First Data, which it integrates with exclusively.

If you are interested in Clover or its products, make sure to check out our reviews!

The post Merchant Maverick Interviews Clover CEO John Beatty appeared first on Merchant Maverick.

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August 1, 2019

The Difference Between Revolving And Non-Revolving Lines Of Credit

When your small business needs additional capital, it’s not uncommon to turn to a lender to quickly get the funding you need to operate or expand your business. Fortunately, there are many funding options available to small businesses, from low-interest Small Business Administration loans to lines of credit.

For small business owners that want a flexible form of financing, a line of credit is a popular option. When applying for a line of credit, you’ll encounter two options: revolving lines of credit and non-revolving lines of credit. In this post, we’re going to explore the differences between the two. Which option is best for your business? Read on to find out!

What Is A Revolving Line Of Credit?

A revolving line of credit is also known as open-ended credit. A lender provides you with a set credit limit, similar to a credit card. You can make draws on this line of credit as many times as you wish, provided you don’t exceed your credit limit.

Once you’ve made a draw, you’ll begin to repay the borrowed funds, plus interest and/or fees, on a schedule set by the lender. Repayments are typically made once per month or weekly, although this varies by lender. As you pay down your balance, the funds are replenished and become available to use again and again, giving you easy, on-demand access to the capital you need when you need it.

A revolving line of credit can work for any business. However, businesses that have a recurring need for capital will benefit the most from this type of funding. Businesses in the foodservice or retail industry, for example, would benefit from a revolving line of credit because funds could be used to purchase inventory or supplies as needed.

Let’s take a look at an example. A business has been given a line of credit up to $20,000. The business makes a draw of $2,000 from the line of credit. The business pays back $1,000 of the line of credit. At this point, up to $19,000 is available to borrow. The business makes draws of $5,000. Now, the line of credit is at $14,000. Over the next few months, the business repays $2,000. The business still owes the lender $4,000 (plus interest and/or fees) and has $16,000 available to draw.

What Is A Non-Revolving Line Of Credit?

A non-revolving line of credit is similar to its revolving counterpart in a few ways. Instead of receiving a lump sum of cash as you would with a traditional loan, a non-revolving line of credit gives you access to a credit limit assigned by the lender. You can make one or multiple draws on your line of credit provided you don’t exceed your credit limit.

A non-revolving account does not replenish after you pay your balance. When the funds are depleted, the account is closed. If additional funds are needed, you would have to apply for a new line of credit or other financial product.

Let’s take a look at an example. Let’s say that you have a non-revolving line of credit with a limit set at $20,000. You draw $5,000. Your balance is now $15,000. Even though you repay the $5,000 (plus interest and/or fees), your balance remains $15,000. You draw another $10,000, bringing your balance down to $5,000. After making multiple payments, your balance remains $5,000. Once you’ve drawn the remaining balance, the lender will close your line of credit.

A non-revolving line of credit is still quite flexible, Your funds will be available to use as you need them, and you can make as few or as many draws as you need until you hit your credit limit. Any business can benefit from a non-revolving line of credit. However, these funds can be used for a variety of purposes, including hiring and training new staff, purchasing additional inventory during a busy season, or using to fill in revenue gaps.

Revolving Line Of Credit VS Non-Revolving Line Of Credit

While revolving and non-revolving lines of credit are very similar in a lot of ways, there are a few distinct differences between the two. Understanding these differences can help you make the best choice for your business.

Borrowing Limitations

Revolving and non-revolving lines of credit both allow you to make multiple draws as needed up to your assigned credit limit. However, the primary difference is what happens once your credit limit is reached. For revolving lines, funds are replenished as you pay off borrowed funds. Non-revolving lines do not replenish their funds, and the lender will close the account once the credit limit has been reached.

Maintaining Your Account

In most cases, a revolving line of credit will remain open provided you pay off borrowed funds as agreed. You will not have to submit multiple applications to maintain your account. However, the lender may periodically check your credit or the performance of your business to determine if changes need to be made to your account.

If you receive a non-revolving line of credit, your account will be closed once all of the funds have been used. At this time, you can fill out another application to receive another line of credit. However, if your situation has changed (i.e., your credit score has dropped or your revenues are lower), you may not qualify for the same credit limit, terms, and interest rates as you did before, so this is something to keep in mind.

Interest Rates

Typically, non-revolving lines of credit have lower interest rates than revolving lines of credit. However, you should still shop around. Other factors including personal and business credit profiles, annual revenues, and available collateral can also have an impact on your interest rate.

Maximum Borrowing Amount

If you’re looking to borrow a larger amount of money, you might want to consider applying for a non-revolving line of credit. Non-revolving lines of credit aren’t as risky as revolving lines, so lenders often are willing to offer higher borrowing limits to qualified borrowers. Maximum borrowing limits vary by lender — as well as factors including credit score and business performance — so, again, make sure to explore your options before committing to a lender.

Which Is Right For Your Business?

Still scratching your head deciding which line of credit is best for your business? To help you make the right decision, take these factors into consideration.

Borrowing Limits

As previously mentioned, non-revolving lines of credit pose less risk to lenders, so initial credit limits are often higher. If you need access to a higher amount of capital, consider applying for a non-revolving line of credit or even a traditional small business loan.

Use Of Funds

If you need consistent access to cash for purchases like inventory or supplies, a revolving line of credit that replenishes over and over again will be a better fit for your business. If your capital needs are more occasional, a non-revolving line may be the best choice.

Borrower Requirements

You also need to evaluate the borrowing requirements of each line of credit you’re considering. The lines of credit with the lowest interest rates and best terms typically require a longer time in business, a good-to-excellent credit score, and higher revenues. If you have past credit challenges, there are lenders that offer lines of credit based on the performance of your business. Be aware, however, that these lenders often have higher interest rates and/or fees that raise the total cost of borrowing.

Time To Funding

You also need to consider how quickly you need access to cash. There are many revolving lines of credit available that you can access within just minutes of submitting your application. On the flip side, getting a non-revolving line of credit from your bank or credit union may take longer, but you could receive much better rates and terms.

Collateral Requirements

Your revolving or non-revolving line of credit may be secured or unsecured. If the line of credit is unsecured, a specific asset is used to back the loan. This is typically business assets, such as equipment or real estate. If you don’t make your payments as agreed, the lender has the right to seize the property to repay the debt.

If your line of credit is unsecured, it isn’t tied to a specific asset. However, you may still have to sign a personal guarantee or the lender may put a blanket lien on business assets.

Interest rates are typically lower and maximum borrowing limits are typically higher on secured lines of credit. Both revolving and non-revolving lines of credit can be secured or unsecured, so make sure to understand collateral requirements when applying for your line of credit.

Where To Find Revolving & Non-Revolving Credit

With an understanding of revolving and non-revolving lines of credit, you should have an idea of whether or not this is the right funding option for your business. If so, the next step is to find your lender. There are multiple sources available that offer lines of credit to businesses just like yours.

Banks

Many banks offer lines of credit to small business owners. Lines of credit from banks often have the lowest interest rates, minimal fees, and best repayment terms. The downside is that banks typically have the strictest borrowing requirements, so this option is best for established businesses. To get started, visit your current financial institution, or shop around your options at local banks in your area.

If you’re a new business owner or don’t meet the requirements for a business line of credit, you may be able to apply for a personal line of credit provided you meet the lender’s requirements.

Credit Unions

Like banks, many credit unions offer business and personal lines of credit with competitive interest rates. While borrower requirements may not be quite as strict as banks, all borrowers should have a solid credit profile, steady revenue, and meet other criteria set by the lending institution. To apply for a line of credit or other financial product, you must be a member of the credit union.

Alternative Lenders

The internet has made it easier than ever to get the funding you need by connecting you with a network of alternative lenders around the nation from the comfort of your home or office. Many alternative lenders offer prequalification tools that allow you to see if you’re eligible for funding without taking a hit to your credit score. Alternative lenders may have applications that are fast and easy, allowing you access to funds within minutes of hitting “Submit.”

One of the positive aspects of working with an alternative lender is that most don’t have the strict requirements found with traditional lenders. In some cases, the performance of your business is what qualifies you for funding, so personal credit challenges, a lack of business credit, or even a short time in business doesn’t bar you from approval. On the downside, though, you’ll find that interest rates are higher, additional fees must be paid, and terms aren’t as favorable as those that come from banks and credit unions.

Final Thoughts

A line of credit can be a great way to boost cash flow for your business. However, it’s important that you shop around, understand the cost of borrowing, and ensure that a line of credit is the best option for your specific situation. If you decide that a line of credit is a good fit for your business, check out our list of the best lenders that offer lines of credit. If this funding doesn’t seem like the best fit, consider other financial products such as SBA loans, small business loans, or business credit cards.

The post The Difference Between Revolving And Non-Revolving Lines Of Credit appeared first on Merchant Maverick.

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July 30, 2019

8 Great Food And Restaurant Franchises To Open In 2019

A lot of aspiring business owners ask themselves the question, “Should I buy a franchise?” at some point. A restaurant franchise is a turnkey business, and while the initial investment can be quite high, your parent company provides you with a proven method for success—as long as you have the time and money to get the wheels turning.

However, you have to be discerning when you choose which food franchise to buy into. Certain franchises are more popular and profitable than others, and you don’t want to choose a brand that’s behind-the-times or not performing as well as its peers. If you have the capital to purchase one of the top restaurant franchises on this list, you will have an excellent chance of success right off the bat. In this list, I’ve compiled some top-performing and up-and-coming food franchises that are excellent investment opportunities in 2019.

Â < $500K Investment

1. Kona Ice

Restaurant Type: Shaved-ice trucks
Initial Investment: Approx. $125K
Number of Franchises: 1,000+
Regions Served: All of United States, and some international
Unique Benefits: Quick startup, low overhead, patented “Flavorwave” self-serve system

Kona Ice is a fast-growing food truck franchise that you have probably been seeing pop up lately at community events, concerts, sports games — you name it. With your first bite, it’s obvious that this Hawaiian-style shaved ice is not your typical “snow cone.” It’s more of a gourmet product that’s both delicious and health-conscious—flavors are vitamin-fortified and sweetened with all-natural stevia and pure cane sugar—making it a hit among kids and parents alike. Moreover, this franchise has very a low barrier to entry, only requiring a $20K cash deposit (Kona can offer in-house financing for the remaining portion of the initial investment).

Kona Ice, which currently ranks #67 on Entrepreneur Magazine’s Franchise 500 list, is currently looking for new franchisees across the United States and worldwide.Â Shaved ice carts, kiosks, and trailers are available. If you think you might be interested in starting a food truck business like Kona Ice, learn about the best financing options for food trucks.

2. Ben & Jerry’s

Restaurant Type: Ice cream shop
Initial Investment: $107,685â$429,300
Number of Franchises: <1,000
Regions Served: All of U.S. & Canada, Europe, Australia
Unique Benefits: Globally recognized brand, relaxed liquidity & net worth requirements, fair & ethical corporate culture

Ben & Jerry’s is a classic ice cream brand synonymous with both quality and fun. Originally founded in 1978, the brand is still going strong today. Customers have always been willing to pay a little more for Ben & Jerry’s premium frozen treats, with their inventive flavors, playful names, and quality ingredients. As is the case with many of today’s most popular franchise brands, Ben & Jerry’s exemplifies socially responsible, sustainable business practices. As such, the brand has a dedicated following and its franchisees stand to make a pretty profit, with a successful Scoop Shop owner easily taking home six figures a year.

Furthermore, Ben & Jerry’s locations aren’t too expensive to open—particularly if you operate a kiosk rather than a full-size ice cream shop—and the company is currently seeking new franchisees in almost every region of the U.S., as well as Australia. Ben & Jerry’s is especially interested in franchisees who are socially conscious and active in their community.

Ben & Jerry’s does not directly offer financing to franchisees, but as long as you have $100K in liquidity and a $350K net worth, the company has no problem with you obtaining a franchise loan from other sources. Depending on whether you are opening a new location or purchasing an existing Ben & Jerry’s, you might also be eligible for a business acquisition loan.

3. Maui Wowi

Restaurant Type: Coffee/smoothie cart
Initial Investment: Approx. $100K
Number of Franchises: 450+
Regions Served: Across U.S., some international
Unique Benefits: Low-cost, mobile business, veteran-friendly

Founded in 1982 and franchising since 1997, Maui Wowi Hawaiian Coffees & Smoothies offers mobile operating units, perfect for selling at events and venues such as arenas, sporting events, and concerts, or at a permanent site that has high foot traffic. This franchise capitalizes on both the coffee industry and the smoothie industry, appealing to consumers looking for a healthy frozen treat or a caffeine fix at a large event, college campus, or busy downtown street corner. Maui Wowi has a place on both the Inc. 500 list of fastest-growing private companies in the United States and Franchise Times’ Top 200 Franchise Systems.

Maui Wowi, currently looking for new franchises located anywhere in the U.S. or internationally, is also unique in that it offers veterans a 20% discount on the franchise fee. Ideal candidates have $40K-$50K in liquid assets, but the company offers optional in-house equipment financing and partners with third-party financing sources to help you come up with the rest of the money for the franchise fee, inventory, and other startup costs. The $30K franchise fee allows you to operate up to three mobile or fixed operating units. If this franchise opportunity appeals to you because you are a veteran, you can also look into small business loans for veterans.

$500K â $2 Million Investment

4. Sonic Drive-Thru

Restaurant Type: Drive-in/drive-thru fast food
Initial Investment: Approx. $2 million
Number of Franchises: 3,600+
Regions Served: All of U.S.
Unique benefits: One-of-a-kind “drive-in” experience, boasts the largest fast-food drink selection

Both iconic and trendy, Sonic has been a beloved drive-in/drive-thru fast-food brand since the 1950s, known for its yummy burgers, scrumptious shakes, and to-die-for cherry limeade. In recent decades, however, Sonic has reached new heights of success, embracing both nostalgia and forward-thinking technology. Customers order from and eat in their parked car, while friendly servers deliver orders on rollerskates. You could almost believe you’re in the 1950s—except you’re ordering and paying from a lit-up digital touchscreen POS.

QSR names Sonic as one of the top 50 quick-service and fast-casual restaurant brands, and Entrepreneur Magazine ranks Sonic #8 on its own (top 500) list. Sonic boasted an average net sales per-store of $1,257,000 in 2018, up from $1,072,000 in 2012, noting that the biggest portion of sales come from its endlessly customizable fountain drink selections. Sonic is currently looking for new franchisees throughout the United States, though you should be aware that they require the franchisee have a minimum net worth of $1 million, as well as liquid assets of at least $1 million.

5. Dairy Queen

Restaurant Type: Soft serve/fast food
Initial Investment: Approx. $1.5 million
Number of Franchises: 6,800+
Regions Served: U.S., Canada, and International
Unique Benefits: Leverage a classic American brand dating back to 1940s with 95% consumer brand recognition (according to DQ)

Dairy Queen is a high-performing, time-tested brand that represents tradition and good times. Soft-serve never goes out of style, especially when you have proprietary treats you can’t get anywhere else, like the DQ Blizzard. Also, while most ice cream/soft serve chains stick exclusively to frozen dessert products, Dairy Queen has the distinction of offering hot food at their “Chill & Grill” locations. Fun fact: famously discerning investor Warren Buffet loves DQ, so much that he bought the company in 1998.

DQ ranks #6 on Entrepreneur’s Franchise 500 list and is considered one of the higher-profit fast-food franchises. For owner-operated franchisee locations, the average annual profit is $194,000, while absentee-managed franchisee locations earn an average profit of $117K.

It will cost you at least a cool million to open your own DQ franchise, but unlike a lot of top franchises, single-unit domestic opportunities are available. New franchisees only need liquid capital of $400K and net worth of $750K, which are more relaxed terms compared with some other top food franchise brands. Also, DQ does not require you to have prior restaurant management experience, as long as you hire someone (or partner with someone) who does.

6. MELT SHOP

Restaurant Type: Elevated fast-casual
Initial Investment: Approx. $500K
Number of Franchises: <10 (with 25 new international locations in the works)
Regions Served: U.S. and international
Unique Benefits: Get in on the ground floor of an emerging franchise

Grilled cheese is back in a big way, in case you haven’t noticed, and MELT SHOP is part of the “upscale grilled cheese” trend currently manifesting in hip neighborhoods everywhere. New York-based MELT SHOP only recently started franchising, but some people are saying this fast-casual chain could be the next Shake Shack or Chipotle (neither of which are currently franchising, unfortunately). MELT SHOP sells melted sandwiches and other comfort food, as well as salads, craft beer, and those trendy little wines in a can. All of these offerings are served in and an elevated fast-casual dine-in experience, with delivery and take-out options. MELT SHOP’s fresh, high-quality ingredients and casual but aesthetically pleasing atmosphere appeals to families and hipsters alike.

MELT SHOP claims that it offers exemplary support and resources to interested franchisees, and though the six-year-old brand is not yet time-tested, it might be worth taking a chance on this up-and-coming opportunity. MELT SHOP estimates an average per-location annual sales range of $1,016,984â$1,640,406, which is not too shabby. The company is looking for franchisees who are experienced in developing multi-unit restaurants, though they may accept single-unit franchisees too.

Multi-Unit Investment

7. Panera Bread

Restaurant Type: Bakery-cafÃ© fast-casual
Initial Investment: Approx. $1 million (per location, with 15 locations minimum)
Number of Franchises: 2,000+
Regions Served: All of U.S. and Canada
Unique benefits: GMO-free, high-profit, meets consumer demand for healthy, socially responsible fast-casual

Panera Bread is a health-conscious bakery-cafe chain that has proliferated across America (and Canada) throughout the first two decades of the 2000s. The brand is known for its health-conscious food and socially responsible practices —think free-range eggs, a GMO-free menu, and community giving campaigns. If you can afford this franchise opportunity, you stand to make high profits—according to Forbes, the average Panera franchise takes home nearly $2.5 million a year.

Panera is a hot opportunity for seasoned restauranteurs who can develop multiple units; the brand is currently only interested in franchisees who will open at least 15 units over a period of 6 years. You will also need to have a net worth of at least $7.5 million and $3 million in liquid cash to become a Panera franchisee. If you are interested in opening a Panera-style business but don’t meet those qualifications, you might think about starting your own coffee house.

8. Darden Restaurants

Restaurant Type: Full-service & fine dining
Initial Investment: The Big Bucks
Number of Franchises: 1,700+
Regions Served: U.S. and international, but currently focused only on international markets
Unique Benefits: Effective corporate leadership, be part of largest American full-service restaurant group

Darden is a large, multi-brand restaurant group that owns a number of popular restaurants, including Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V’s. Some of these restaurants are more on the casual sit-down side, while others can be considered fine dining. What they have in common is that they are almost universally high-performing in recent years, particularly since the company reorganized operations in 2014, adopting a franchise model and ditching Red Lobster from their lineup.

The bad news for most readers is that you will have to have very deep pockets to open an Olive Garden or another coveted Darden Restaurant—currently, they are only looking to partner with experienced, “well-capitalized” partners interested in opening 15+ restaurants in international territory. But if this happens by any chance to describe you, becoming a Darden franchisee could be an extremely lucrative opportunity. Darden is also open to “non-traditional, domestic franchise locations (e.g., airports, campuses, military bases)” and acquisition opportunities.

Final Thoughts

Restaurant franchise ownership can be a smart choice for driven individuals who want to purchase a turnkey business. Franchises don’t run themselves, but with your personal dedication and industry tools such as franchise management software, you can run your food franchise like a well-oiled machine.

If you’ve decided that you want to purchase a restaurant franchise, but don’t have the initial investment just yet, that’s okay. Many franchises will let you finance part of the purchase cost, whether through an in-house financing program for franchisees, or through a franchise loan you obtain from a bank or an online lender. There are also SBA loans for franchises, so be sure to check whichever franchise you’re interested in against the SBA franchise list to see if you’re eligible for SBA financing.

The post 8 Great Food And Restaurant Franchises To Open In 2019 appeared first on Merchant Maverick.

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July 30, 2019

What You Need To Know About Funding Your Startup With A Home Equity Loan

You’ve made up your mind, and you’re ready to ditch the traditional 9-to-5 and forge your own path to success. You are geared up to take the next step by launching a startup. You’ve determined your legal structure, you’ve written out a business plan, and you’re ready to bring your idea to fruition. There’s just one problem: you don’t have the funds to get your business off the ground.

Finding funding for any business can be a challenge, but startups face even more obstacles. This is because most lenders reduce risk by working with more established businesses that have a track record of success. Even if you do find a lender that works with new businesses, you may face excessive fees, high interest rates, and short repayment terms.

To get an affordable loan with terms that work best for your startup you have to get creative. If you own your own home, one of the ways you can fund your startup costs is by applying for a home equity loan.

Of course, like other types of funding, home equity loans come with benefits and drawbacks that you should carefully weigh before submitting your application. In this post, we’re going to explore the pros and cons of using a home equity loan to fund a startup. Read on to find out more.

What Is A Home Equity Loan?

To understand a home equity loan, you first need to understand equity. Equity is the difference between the value of the home and the amount owed on the home. So, for example, if the value of your home is $500,000 and you have a remaining loan balance of $200,000, the equity you have is $300,000. Equity can grow as you pay down your first mortgage or if the value of your property increases.

You can use this equity as collateral for funding that can be used for any purpose, including launching your business, by receiving a home equity loan. A home equity loan is also known as a second mortgage, and it provides you with a lump sum of cash that you repay in monthly installments over several years.

If you want a more flexible funding option, you may want to consider a home equity line of credit (HELOC). A HELOC allows you to use your home’s equity for a flexible line of credit. With a HELOC, you’ll enter into the draw period, which typically lasts one year. During this time, you may draw from your line of credit up to the limit set by the lender. At the end of the draw period, you enter the repayment period, where borrowed funds are repaid through scheduled installments. Once the funds have been repaid, you may be eligible to begin drawing funds again.

Want to learn more than just the basics? Find out everything you need to know in our post, The Complete Guide To Home Equity Loans For Business Purposes.

How Home Equity Loans Can Be Used To Start A Business

One of the best things about home equity loans and HELOCs is that there are no restrictions on how you use your funds. While many business loans have restrictions on how funds are used and what industries qualify, these same restrictions do not apply to home equity loans and HELOCs. As long as you meet the criteria for borrowing, you can use your funds any way you choose, including funding startup costs.

Some of the ways that you can use your home equity loan include:

Purchasing or leasing commercial property
Buying equipment
Purchasing inventory
Hiring and training staff
Marketing campaigns
Paying taxes
Business insurance

But the possibilities don’t end there. If you don’t want to start a business from scratch, a home equity loan opens up additional opportunities for entrepreneurship. You can use your loan to acquire an existing business, or you can open up a franchise. The flexibility offered by home equity loans and HELOCs is just one of the many reasons that aspiring entrepreneurs choose this type of funding.

Equity Loans For Starting A Business: Pros & Cons

Before you jump online or head to your local bank to apply for a home equity loan, it’s important to take a look at the overall picture. Sure, home equity loans offer many benefits and could be the right option for funding your startup costs. But these loans also have their own set of drawbacks that you should consider before filling out an application.

Pros

Flexibility:Â Some lenders offer financial products that come with restrictions. For example, you may not be able to use your funds if you work in a certain industry, or you may be limited to only making specific purchases (i.e., equipment financing that is used to purchase equipment). Home equity loans don’t have these same restrictions, allowing you to spend your funds as needed to launch your business.
Low Interest Rates:Â Lenders evaluate risk, and often, small businesses are seen as risky investments. While established businesses with high revenues and solid credit profiles may qualify for affordable loans, new businesses may face high interest rates and excessive fees. With a home equity loan, the equity in your home serves as your collateral, resulting in less risk for the lender and lower interest rates for you. In addition, the interest you pay may potentially be tax-deductible.
Longer Repayment Terms: If you want a loan that you can pay back over a longer period of time, a home equity loan may be the right choice for you. In general, expect to get between 5 to 15 years to repay your loan.
Easy Application Process:Â Applying for a home equity loan may be much easier than receiving a small business loan. Typically, there are fewer paperwork requirements, and the process may be even faster if you work with the lender on your first mortgage.

Cons

Putting Your Assets At Risk:Â If you pay back your home equity loan as agreed, you won’t lose your property. However, if you default on your loan, your lender can foreclose on your home. If you’re in a particularly risky industry such as retail or food service, make sure you understand exactly what’s at stake before applying for a home equity loan.
Qualifying May Be Difficult:Â Although home equity loans allow you to bypass many of the requirements of small business loans (i.e., time in business and annual revenues), you will still need to meet the criteria of the lender. This includes but is not limited to having a solid personal credit profile, meeting the lender’s loan-to-value requirements, and having enough equity in your home.
Upfront Costs:Â Some fees are required before you can receive your funds from a home equity loan. Some potential fees include origination fees, underwriting fees, recording fees, and closing costs.

Final Thoughts

Finding financing options for your startup business can be a challenge, but home equity loans can help you get the money you need at an affordable cost. However, as with any other financial product, it’s important to weigh out the pros and cons and explore all options before signing on the dotted line.

Unsure if a home equity loan is the right choice for you? Check out other startup loan options that may be a better fit for your situation.

The post What You Need To Know About Funding Your Startup With A Home Equity Loan appeared first on Merchant Maverick.

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July 23, 2019

What Is An Issuing Bank?

If you have a Visa or Mastercard, then you already have an intuitive understanding of what an issuing bank is. It is the bank whose name is on the card, alongside the Visa or Mastercard brand. It is the bank where you applied for the card, the bank that sends you a bill each month, and the bank that you (hopefully) pay each month. As a cardholder, the issuing bank is the only entity you work with, and you probably donât care how the money you charged eventually ends up with the merchant.

If you are also a business owner, however, you do indeed care about how the money gets to you, and the issuing bank plays an important role in the process. Read on to find out what an issuing bank is, and why it is important to a merchant.

Defining An Issuing Bank

The credit card business can be complicated. Its technical terms can make a personâs head spin, and one of these terms is issuing bank or, sometimes, issuer.

The issuing bank is the entity that owns the relationship with the cardholder. The issuing bank finds the consumer it wants to do business with, investigates the creditworthiness of the consumer, issues the consumer a revolving line of credit in the form of a credit card, fronts the money for the consumerâs purchases, and then collects all or some of the money in one invoice to the consumer every month. They assume some of the risk if the consumer is unable to pay back the credit card debt.

There are four major credit cards brands in the US: Visa, Mastercard, American Express, and Discover. Each card has a slightly different relationship with its issuing banks.

Visa and Mastercard

With Visa and Mastercard, it is easy to identify the issuing bank of each cardâthe bankâs name is always on the card. The reason this is so has a lot to do with how the modern-day credit card got started.

Visa was formerly called BankAmericard. It was the first successful consumer credit card, and it was started by Bank of America in 1958. Mastercard came along soon after. It was formed by a consortium of banks who wanted to compete with Bank of America in the credit card business.

In the beginning, BankAmericard was only available in California because that was where Bank of America did business. As the card became more successful, Bank of America wanted to expand the card into other states. However, at that time, a bank from one state could not operate in another state, so Bank of America had to license the cardâs name to individual banks authorized to operate in specific states.

BankAmericard became a franchising business and the licensee banks found their own consumers and issued their own cards, but all under the BankAmericard name. They used the payment infrastructure from Bank of America to move money from the cardholders to the merchants to pay for the goods and services.

Mastercard grew in a similar way with a similar business structure. It started out as a consortium, so it had always been a licensing business.

The BankAmericard continued to belong to Bank of America until 1970, when it became an independent company. In 1976, it changed the cardâs name to Visa, and became the company we know today.

Because of this history, with Visa and Mastercard, the name of the issuing bank always appears on every card along with the cardâs brand. Because each individual bank had the responsibility of finding new cardholders, the cardholders worked with the issuing banks whenever a payment or purchase issue arises.

American Express

The American Express card originally started as a charge card instead of a credit card, and only the American Express company issued the card.

Charge cards are slightly different than credit cards. There is no stated limit on a charge chard–it changes as the creditworthiness of the cardholder changes, so it can change on a month-to-month basis. Charge cards must be repaid in full at the end of every month. In contrast, a credit card is a line of credit with a stated limit that can be paid back over a longer period of time.

American Express still issues charge cards, and the issuing bank for these charge cards is American Express itself (it became a bank holding company in 2008). However, American Express also offers a line of credit cards, and the credit cards can be issued by third-party banks such as Bank of Hawaii (actually owned by Bank of America), MBNA, Citibank, Wells Fargo, and quite a few others.

So American Express is sometimes its own issuing bank, but it also works with other banks to issue credit cards. When an American Express credit card is issued through a third-party bank, the issuing bankâs name is on the card, along with the American Express logo.

Discover

Discover works a little bit like American Express because it functions as the issuing bank. That bank is called the Discover Bank, but its name does not appear on the card. It is the only issuing bank of Discover cards in the US. (There are international arrangements, so a few banks outside the US do issue Discover cards in their respective countries.)

Discover began its life in 1985 at Sears, when Sears wanted a general-purpose credit card in addition to its own store card. When the card started, it was issued by The Greenwood Trust Company located in Delaware, which Discover bought in the same year. Even to this date, the trust has one physical location, in Delaware. Discover changed the trustâs name to Discover Bank and the bank continues to issue Discover cards as well as offer a suite of traditional financial products like checking accounts. You can explore its traditional banking services online on Discoverâs website.

Now that we understand how to identify an issuing bank for each card, letâs look at the issuing bankâs role in payment processing.

The Issuing Bank’s Role In Payment Processing

As mentioned above, the issuing bank owns the relationship with the cardholder. The issuing bank is the entity that investigates the creditworthiness of the cardholder, grants the line of credit to the cardholder, and fronts the money for purchases made with the card to send to the merchant.

A highly simplified flow of the process is as follows:

Cardholder presents the card to pay.
Merchant takes the information and contacts its own credit card processing entity, which, for the sake of simplification here, is a bank (called the acquiring bank).
Acquiring bank contacts the issuing bank.
Issuing bank verifies the cardholder’s funds and sends the purchase amount to the acquiring bank.
Acquiring bank pays the merchant.
Issuing bank recoups the money from the cardholder based on a regular billing cycle.

As can be seen above, as a merchant, you do not have to deal with the issuing bank in this normal process flow. However, sometimes the cardholder disputes the charges, maybe because of buyerâs regret, maybe because they never got the goods/services, or maybe because the charge is fraudulent in some way.

The cardholderâs relationship is with the issuing bank, so they file a complaint with the issuing bank. The issuing bank then works with the acquiring bank and the acquiring bank might come back to you and ask you about the disputed charge. Note that the issuing bank has a direct business relationship with the cardholder while you have no direct business relationship with the issuing bank–your relationship is with the acquiring bank.

Unfortunately, it is the issuing bank who has the final say on disputed charges, and it often decides in the cardholderâs favor. This results in a chargeback and you end up not only having to pay the money back, but also pay a fee for the investigation. Even if you do win the dispute, you may still not get the investigation fee back.

Issuing Bank VS Acquiring Bank

There are a few things to note about the acquiring bank or acquirer. First, this is the bank that owns the relationship with the merchant. It fronts the credit card payment to the merchant and then shares some risk with the issuing bank on not being able to eventually recoup the money from the cardholder. Some acquiring banks work directly with a merchant, others farm out the work to another specialized entity called the payment processor (who then owns the direct working relationship with the merchant), yet other acquiring banks do both.

In the above simplified flow, the acquiring bank is a bank different from the issuing bank. Real life, however, is never this simple. As discussed above, the first widely accepted credit card was started by Bank of America. They had to build an entire backend infrastructure to pay the merchants, so they were their own issuing bank as well as the acquiring bank. Even to this date, Bank of America continues to be both an issuing bank and an acquiring bank. Many other big banks work the same way.

As a merchant, the most important bank for taking credit card payments is the acquiring bank, so it is worth your time to get a deeper understanding of what they are and how they work. We have a terrific in-depth article on acquiring banks, so be sure to check the article out.

How Important Is The Issuing Bank To Merchants?

If you have a business credit card, then, of course, the issuing bank is important to you because you work with the issuing bank on your businessâs purchases. As a merchant who accepts credit card payments, however, the issuing bank is only important when a chargeback occurs.

If your business experiences very few chargebacks, then you would have to deal with the issuing bank only occasionally. If you have a lot of chargebacks, you would have to deal with issuing banks often, but only indirectly. Because you do not have direct contact with issuing banks on chargebacks, it could handicap your ability to dispute a chargeback. It is, therefore, not the actual issuing bank that is important to a merchant, but the role of the issuing bank in the credit card processing that is important to the merchant.

How often do you have to deal with issuing banks? Is there an issuing bank you found particularly difficult or easy to work with? Leave us a comment below.

The post What Is An Issuing Bank? appeared first on Merchant Maverick.

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July 18, 2019

How Much Money Do You Need To Start A Business?

Startup capital is a necessity for virtually all businesses. However, the cost to start a business varies widely depending on what kind of business you are starting. For example, a home-based endeavor such as a dropshipping company or an Amazon business can cost less than $1,000 to get off the ground; the same goes for a business that doesn’t require an office or much equipment, such as a pet sitting business. On the other hand, opening a business that requires more equipment and office space—such as an autobody shop or a coffee shop—could cost $100,000 or more.

In this post, I’ll go over the main costs associated with starting a business and what you can expect to pay for each of them.

Surprisingly, there aren’t too many official statistics available on how much it costs to start a business, probably because the costs vary so much. There was a study conducted by the Ewing Marion Kauffman Foundation way back in 2009 that found the average cost to start a business at that time was $30,000.

Below, we’ve put together our own startup business cost figures, but keep in mind that the amount you’ll spend will vary greatly depending on various factors, such as your industry and location.

Common Small Business Expenses

Startup Expense	Estimated Cost
Business Licenses & Permits	$200
Business Insurance	$1,000 (annually)
Equipment & Supplies	$10,000
Inventory	$1,500
Office Space & Utilities	$5,000 initially, then $2,000 monthly
Employees	$8,000 (monthly)
Marketing	$700 initially, then $200 monthly
Business Software	$200 (monthly)
Professional Services (e.g., legal services)	$600
Misc. Other	$1,000
Total estimated cost: $28,200

Business Licenses & Permits

As a new business owner, you will need to register your business in your state and apply for a local business license/permit in your city or county. Depending on your industry, you may also need to obtain an industry-specific business permit. These initial business registration costs are usually minimal (less than $500).

Business Insurance

There are several types of business insurance for startups and which type(s) you need depends on various factors. Insurance is a significant, ongoing business cost. Most businesses will need general liability insurance and business property insurance, and if you have employees, you will also need to pay for workers compensation insurance and health insurance. Commercial vehicle insurance and product liability insurance are some other business types you may or not need.

Equipment & Supplies

All businesses require some sort of equipment or supplies, but these costs vary significantly depending on what type of business you have. Examples of equipment and supplies include:

Restaurant kitchen equipment
Office furniture
Office supplies
Business vehicle(s)
Medical equipment & supplies
Computers
Product manufacturing equipment
Point of sale equipment (cash register, credit card reader, etc.)

The type of equipment and other materials you need to run your business really depends on your industry—for example, if you’re starting a wedding planner business, you’ll probably just need a computer and office supplies, whereas a trucking company will need commercial vehicles, etc.

Office Space & Utilities

If you need to rent or buy an office space, this will be a significant ongoing expense, and a big startup cost too, as you will need to pay a security deposit, first and last month’s rent, etc. Internet, gas and electricity, a business phone, and data plans will also factor into the infrastructure costs of your office space. Most businesses start out as home-based or rent a business space initially, instead of purchasing or building property.

Inventory

If you sell a physical product, you need a certain amount of inventory to start out with (and have on-hand on an ongoing basis). Retail stores need a certain number of finished products on hand, while food-based businesses such as food trucks, for example, need to stock up on raw ingredients before they can open up shop. This, of course, does not apply to information-based businesses, such as consulting businesses or various other service-based businesses.

Employees

You may or may not start your business with any employees. If you do have employees, you need to factor in payroll costs, payroll taxes, insurance costs (workers comp. and health insurance), and training costs.

Marketing

Modern business marketing includes not only business cards, advertisements, signage, etc., but also digital marketing costs such as SEO, social media marketing, and website maintenance costs. As far as your digital marketing, at the very least you will need a website and social media presence. Tip: Be sure you register your domain early on in the process of starting your business, as your website will be the foundation of your online marketing.

Business Software

Some different types of business software you might need to launch and run your business include:

Accounting software
Booking software
POS softwareÂ
eCommerce/shopping cart software
Invoicing software
Inventory software
ERP software
Website builder software
Project management software
Shipping software
Email marketing software
Industry-specific business software (for example, specialized software for dentists, auto mechanics, etc.)

Some small business software programs combine multiple functions. For example, a restaurant management software system might include POS functionality as well as accounting, inventory, employee management, and maybe even email marketing functions. An accounting program like QuickBooks combines accounting, payroll, and invoicing functions, with POS functionality as an add-on.

Generally, most business software apps are no longer large programs that you install onto a computer as a one-time expense; rather, today’s business software is usually app/cloud-based, meaning you can sign in from any internet-connected device. And rather than paying for the software as a large, one-time expense, today’s software-as-a-service (SaaS) model is based on monthly payments with no down payment or long-term commitment. So, initial investment for business software will likely be much less than you would have paid for a comparable program 15 or 20 years ago. Some business software is even free to use.

In addition to software, don’t forget to factor in the cost of the associated hardware you’ll need to run the software into your equipment costs. For example, most businesses will need point of sale equipment, a laptop or iPad, a wireless router, etc. For very small businesses requiring only a basic app to take payments, it’s possible that the only hardware you might need is your smartphone.

Professional Services

This category can include legal fees, consultancy fees, accountant fees, and fees for any other professional services you use to help launch your business. While some businesses require minimal professional services, most businesses should at least consult a lawyer and/or professional accountant during the startup phase.

Other Costs

You’ll more than likely find out that there are more startup costs than you initially anticipated. Thus, it’s important to have a certain amount of your budget set aside for miscellaneous expenses that will inevitably come up. Some various costs you’ll need to include in your budget may include:

Organizational dues
Travel costs
Shipping fees
Loan interest
Repairs/renovations
Credit card processing fees (once you start making sales)

Of course, you’ll also need to make sure you have enough money to support yourself before your business becomes profitable, so make sure this cost is included as well.

How To Calculate Startup Costs

The SBA has a very useful startup cost worksheet that outlines common business startup costs with sample figures that you can personalize to calculate the true cost of starting your business. Simply enter the estimated cost for each category (rent, utilities, inventory, employees, etc.) and you’ll be able to get a rough estimate of how much money you might need for your initial investment.

It’s also a good idea to make a sales forecast, in which you estimate how much you will sell in the first 6â12 months of opening your business. How long will it take for your business to make a profit? How long ’til you can pay off your startup expenses? With your prospective revenue in mind, you’ll have a better idea of how much you can afford to spend on ongoing expenses such as payroll and inventory.

If the total seems unaffordably high, look for areas you might be able to cut costs. For example, could you operate your business out of your home for the first six months? Could you subcontract workers instead of hiring employees? Could you use dropshipping to deliver goods to customers directly from the manufacturer, instead of buying inventory upfront?

Once you have a good idea of how much startup capital you might need for your first 6â12 months in business, you can decide how you will finance your venture.

What To Do If You Donât Have The Money

Startup funding can be difficult to procure from a traditional bank, especially if you don’t have any significant assets or previous experience owning a business. However, that doesn’t mean you don’t have any options. Online technology has actually made it a lot easier to find small business funding. Here are some options you might try to finance your business.

Online Loan: This category includes both online business loans and online personal loans. Generally, online business loans for startups are limited to short-term, high-interest loans; you won’t qualify for better terms unless you’ve been in business at least two years. Still, it’s definitely worth looking into to see what kind of loans and rates you might qualify for. Some online lenders might even offer access to SBA loans for entrepreneurs, such as SBA microloans. Look at our startup business loan comparison chart to find some startup-friendly loan options.
Business Credit Cards: If you just need a few thousand dollars to get started, a business credit card can be a smart choice. You can use a business credit card to charge startup expenses, and/or to get a cash advance (though make sure you check the terms on the advance because they usually charge high interest). You could also use a personal credit card, though business credit cards typically have more business-specific benefits, such as cash-back for common business expenses. Look at our best small business credit cards comparison to see some of the top business cards’ requirements and perks.
Equipment Financing: If your main startup expense is the equipment you’ll need to run your business — for example, restaurant kitchen equipment, manufacturing equipment, office equipment, etc. — then you can simply finance the equipment itself, in the form of an equipment loan or lease. Similar to automotive financing, equipment financing involves monthly payments (either to lease or own), and does not typically require good credit or any collateral other than the equipment itself. Check out our equipment financing comparison chart to see your best options.
Line Of Credit: A business line of credit is similar to a credit card in the sense that you can have it on hand to pay for expenses, but you only have to repay what you use. Like a business loan, you can get a line of credit from an online lender or a traditional bank. However, startups will have better luck finding a line of credit online; there are several online line of credit providers that only require only 6 or fewer months in business, whereas banks typically will not extend a line of credit to startups. Check out our line of credit comparison page to find some startup-friendly LOC options.

Other startup financing ideas:

Loan from friends/family
Crowdfunding
Seed investors
Business grant
Nonprofit lenders
Personal retirement savings— rollover a retirement account using a ROBS (rollovers as business startups) plan

Our team at Merchant Maverick has also written many informative articles about startup financing that can help you on your journey:

Crowdfunding For Startups: 8 Tips For Launching
Don’t Let Bad Credit Stop You From Getting A Startup Loan
The Best Business Cards For Startups And Entrepreneurs
SBA Loans For Startups
How To Find A Startup Grant
14 Types Of Alternative Financing For Small Businesses
The Best Business Credit Cards For People With Bad Credit

Tax-Deductible Startup Costs

If your total startup costs are $50K or less, you can write off up to $10,000 of startup costs on your taxes in the year that you start the business, including up to $5,000 in business startup costs and another $5,000 in organizational expenses (legal fees, state incorporation fees, etc.). If your startup costs exceed $50,000, the amount of your allowable deduction will be reduced by that dollar amount, and if your startup costs are more than $55,000, you are not eligible for the deduction.

Certain startup expenses are not tax-deductible—for example, the costs to qualify for doing business in your industry, such as real estate licensing costs, are not deductible as a startup expense. Additionally,Â business assets (one-time business expenditures such as vehicles and equipment) are not deductible as startup expenses, but may be deductible in a different category (amortization).

(In case you were wondering, business loan interest is, indeed, tax-deductible.)

Final Thoughts

It may be a cliche, but it is also true that “it takes money to make money.” Startup business costs can range from under $10K to over $100K, depending on a number of factors. It’s okay if you don’t have all the money right now: the important thing is to put together an accurate estimate of how much you will need, what you will spend the money on, and how/when you’ll be able to repay any borrowed monies with your revenue. You can then incorporate this estimate into your business plan and the loan proposal you will use to demonstrate to lenders that you are a good candidate for financing.

With the numerous financing options available to entrepreneurs these days, there is a great chance that if you have a sound business plan and accurate, reasonable startup cost estimate, you will be able to find a lender that can meet your startup financing needs.

The post How Much Money Do You Need To Start A Business? appeared first on Merchant Maverick.

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July 10, 2019

Digital Wallets VS Mobile Wallets

If you’re reading this article, chances are that some of your customers have recently asked whether you accept Apple Pay or Google Pay. Your preliminary research has yielded the terms digital wallet and mobile wallet, but while you may have heard of these forms of payment before, you don’t yet know many of the details.

What do these terms mean? Is there a difference?

The short answer is that digital wallet is a broad term covering software that electronically stores credit card numbers, debit card numbers, loyalty card numbers, etc. on your laptop, tablet, phone, or the cloud. A mobile wallet is a type of digital wallet that lives only on your phone and allows you to “tap to pay” in stores, often using NFC technology.

Below is a more detailed explanation of what these wallets are, as well as how they might affect your small business.

What Is A Digital Wallet?

A digital wallet is an electronic method for storing payment information. It is a broad term covering many types of functionalities, and not every wallet offers every type of functionality. Below is a list of major functions typically found in digital wallets.

Store Credit & Debit Card Information: All digital wallets can store credit and debit card information. Some, like Apple Pay, Google Pay, and Samsung Pay, will allow payment directly from the card. Others, like PayPal, draw funds from a stored credit or debit card but pay out through the service itself.
Pay At A Store: Many digital wallets will allow a user to pay for purchases made at a brick-and-mortar location. Apple Pay and Google Pay both allow this type of payment when an NFC-capable point-of-sale terminal is available.
Peer-To-Peer (P2P) Payments: Most digital wallets allow users to transfer funds to one another. Typically, these payments are small amounts used to split a lunch bill, pay a babysitter, or even pay a share of the rent. The Cash app, Venmo, Zelle, Apple Pay, and Google Pay all allow users to transfer money this way.
Online Payments: Digital wallets can be used to pay for online purchases. At checkout, a merchant who takes digital wallet payments will display the appropriate button for the appropriate wallet. PayPal is the most well-known wallet having this type of pay with button, but Apple Pay and Google Pay have similar buttons.
Hold Funds: A digital wallet can store cash in the same way a gift card can hold cash. The funds are held in a cash account, and a user can link a bank account or a credit card to this cash account to cover shortages. Square’s Cash app and PayPal’s Venmo are examples of digital wallets that hold funds, and they even provide their users with physical prepaid cards (Visa for Square and Mastercard for Venmo) so the cash can be used at brick-and-mortar stores.
Hold Coupons & Loyalty Cards: Many digital wallets can hold coupons or loyalty cards so a user can be given the appropriate credit or discount for using a particular card or for shopping at a particular store. Apple Pay, Google Pay, and Samsung pay all hold coupons and loyalty cards.
Store ID: Some digital wallets will allow a user to store IDs. For instance, Apple Pay will allow a college student to store a student ID and use it to access various buildings or even pay from a student account.
Store Transit Tickets: A number of digital wallets allow users to store transit tickets. Users can tap the phone (or a wearable linked to the phone) on a reader to enter subway or bus stations in an increasing number of cities in the US and abroad.
Security: All digital wallets have security features that keep the stored information safe. The information is not only protected by password or biometrics (fingerprint scan, iris scan), but is also encrypted in many ways. Credit card information, for instance, isn’t even kept on the phone. Only a token that represents the information is kept on the phone.

Given that digital wallet is an overarching term that includes all the above features, is there a meaningful difference between a digital wallet and a mobile wallet?

How Is A Mobile Wallet Different From A Digital Wallet?

An easy way to distinguish mobile wallets from mere digital wallets is that mobile wallets let the user make a payment at a storeâs point-of-sale terminal. The payment is usually pulled directly from a credit or debit card rather than from a cash balance kept in the digital wallet.

With a mobile wallet, a user typically pays by tapping on a credit card terminal with a smartphone or a wearable device like a smartwatch or a fitness tracker. The device then transmits the payment information from the phone to the terminal via Near Field Communication (NFC) technology. Other mobile wallets (e.g. Dunkin’ Donuts, Walmart) send payment information through QR codes that a merchant can scan or the user can import through the phone’s camera. A third technology proprietary to Samsung (Magnetic Secure Transmission (MST)) mimics a magnetic swipe and transmits payment information that way.

As a side note, the popularity of NFC technology for payment processing has a lot to do with security. In the US, NFC is favored because it transmits the information only over very short distances. This way, there’s less likelihood that a snooping device can steal the payment information. In comparison, QR codes are less secure because a user can innocently scan a rogue code and be tricked into sending money to the wrong destination.

In this article, we try to draw a distinction between digital wallets and mobile wallets, but, in truth, the nature of these wallets is still in flux. When most people speak of mobile wallets, they tend to only be thinking of Apple Pay, Google Pay, or Samsung Pay. While digital wallets like PayPal and Cash can be loaded onto smartphones as apps, they cannot make NFC-based payments, so they are technically not mobile wallets. (PayPal can be linked to Google Pay and Samsung Pay, so it is still possible to pay at a store with PayPal, but the app itself is not capable of handling NFC payments.) However, Google Pay and Apple pay do let users make P2P payments and send cash, and these features tend to be major functions of pure digital wallets. Google Pay and Apple Pay, therefore, blur the line between digital wallets and mobile wallets.

If the line between digital wallets and mobile wallets is blurry, is there even a reason to draw a distinction between them? For a consumer, the answer is likely “no,” but for a merchant who wishes to take these payments, the difference can be significant.

What Mobile & Digital Wallets Mean For Merchants

For a merchant, there is a subtle but meaningful difference between a mobile wallet and a digital wallet. If you operate an online store or sell through a mobile app, then you can take digital wallet payments, but likely it will take a little work because you must add new code to your web store or your app. If you can’t handle coding yourself, you’ll need to hire a developer to implement these payment options. This is a bit different than some other online payment options that allow you to accept credit cards with minimal setup.

If, however, you operate a brick-and-mortar store where your customers pay through a point-of-sale terminal, then you can probably take mobile wallet payments without doing anything extra. If you have an NFC-enabled terminal, then you are all set to take Apple Pay, Google Pay, or Samsung Pay. If you are still using an older terminal that only takes a magnetic stripe card, then you can still take Samsung Pay because it has that the proprietary MST technology that mimics a magnetic strip card swipe.

Below are some of the additional advantages of taking digital and mobile wallet payments.

Payment Security

Digital and mobile wallets are secure. Digital wallets store payment information on a specialized, super-secure environment called the Secure Element (SE). Apple uses an SE chip embedded in the phone while Google and Samsung use one in the cloud.

When a customer makes a purchase, instead of the real credit card number, only a tokenized number is sent to the merchant. Hereâs a more detailed explanation of credit card tokenization, but for quick reference, a credit card token is just a random number with the same number of digits as a real credit card number. Only the credit card company has a way to match that random number to a customerâs real credit card number. So, if a token is stolen, the credit card company simply issues another token and disallows payment requests made with the stolen token. The real credit card number is kept safe and other purchases made with the real number (or other tokens) can continue.

From a merchantâs standpoint, the explanation above just means that tokenization takes you out of scope for PCI compliance (meaning less work for you) and you won’t be held responsible for fraudulent charges made with a stolen credit card. Thatâs a great reason for taking digital or mobile wallet payments.

Fast Checkout

Digital and mobile wallets make checking out faster. Whether you operate online only or have a brick-and-mortar store, faster checkout typically translates to more sales.

If you have a webstore or an app that takes in-app purchases, digital wallets often can populate all the payment fields with the push of a button. This means your customer wonât have to dig out a credit card, enter a long series of numbers, triple check to see the number is entered correctly, enter in their email twice, etc. etc. Being able to pay easily and quickly makes a better overall purchasing experience, and that means a better chance of a returning customer.

At a brick-and-mortar store, payment with an NFC enabled phone or wearable also makes checking out faster. Tapping a phone or a smartwatch over a point-of-sale terminal takes a mere second or two. Compare that to digging out a card from a wallet, dipping a card into the reader, waiting for the reader to approve payment, and making sure the customer does not forget to retrieve the card, you can see the time savings right away. Whatâs more, all the customers behind the one making the payment can see their time savings as well. The more happy customers you can move through your checkout, the more sales you can make.

Convenience

In line with faster checkout, taking digital and mobile wallet payments offer additional conveniences to your customers. These days, most people pay for their purchases with a credit or debit card, and mobile wallets are increasingly being used to store these cards, especially by the young and/or tech-savvy. Millennials and Gen Z’ers transfer cash between friends using mobile wallets without a second thought and never seem to carry actual cash on them.

For these customers, it would be convenient to consolidate spending into one wallet, so they can easily keep track of their cash, credit, and debit spending. Most digital and mobile wallets also allow users to pay faster by approving a purchase using stored information. PayPal has a one-touch feature that allows a customer to instantly approve a payment with stored data. Google Pay allows a user to approve a purchase by just unlocking the phone and hovering the phone over the payment terminal without ever opening the Google Pay app.

Of course, digital and mobile wallet users won’t stop patronizing your store just because they can’t pay with their mobile or digital wallet. But, if you do allow it, they might come back to you more often because you take payments in the way they prefer to pay.

Do You Need To Accept Mobile & Digital Wallet Payments?

You probably do not absolutely need to take digital and mobile wallet payments, but allowing them might bring you more sales. If you have an online store, then you might have to invest some time or money to connect up to the wallet services. However, if you own a brick-and-mortar store, you likely already can take them. In fact, if your customers tend to be tech-savvy and/or young–or you want to attract more such customers–the ability to pay with digital or mobile wallets will offer them the convenience they want and induce them to do more business with you.

Whatever you do, if you decide to take digital and mobile wallet payments, be sure to advertise it properly. You can request signs and stickers from the wallet providers and of course download logos and the appropriate buttons for your webstore. Once this is done, you are on your way to taking digital and mobile wallet payments.

If you already take digital and mobile payments, what has been your experience so far? Have you increased your sales? Have you gotten positive comments from (hopefully pleasantly surprised) customers that you have improved your technology to allow for this new way to pay? Leave us a message in the comments!

The post Digital Wallets VS Mobile Wallets appeared first on Merchant Maverick.

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July 4, 2019

Credit Cards With Car Rental Insurance: The Complete Guide

Travel often? Tired of paying extra for your rental carâs insurance? If you can find the right credit card, you may be able to skip forking over cash for a rental car companyâs coverage.

Included as a benefit on many travel cards, credit card car rental insurance can cover your rental car in case of damage. This means that if you book your rental through your card, you can decline any coverage offered by the rental car company.

Of course, not all credit card insurance is created equal. Plus, using your card in lieu of a rental car company waiver comes with its own set of headaches. To help you along, this guide is meant to give you insight into the nitty-gritty of credit card car rental insurance.

In some cases, business owners may need to opt for a personal card to receive proper car rental insurance while earning rewards that match their spending habits. This isnât a bad thing; personal cards can still work great for business expenses.

How Credit Card Car Rental Insurance Works

Car rental insurance is a benefit provided by numerous credit cards (especially those marketed as travel cards). Depending on the card, this benefit can act as primary or secondary insurance in case you are involved in a crash with a rental car. As is the case with most things surrounding credit cards, youâll need to check with your cardâs terms and benefits to see exactly what coverage you have.

As long as you have a credit card with solid car rental coverage, youâll be able to decline the rental car companyâs collision damage waiver (CDW) or loss damage waiver (LDW). This can save you moneyâitâs not unheard of for a waiver to cost as much as $30 per day.

If you are using a business credit card note that youâll likely need to be using the rental car for business purposes for the credit cardâs insurance to kick in.

Primary Insurance VS Secondary Insurance

Some credit cards will offer primary insurance, while others offer secondary insurances. Whatâs the difference?

Primary insurance: If your card offers primary insurance, then it can replace any other insurance you might have. By having a card with primary insurance, youâll be able to decline a CDW or LDW when the rental car associate asks you.

Cards known to come with primary car rental insurance include Chase Sapphire Preferred and Reserve, United MileagePlus Explorer and MileagePlus Club, Ritz-Carlton Visa Infinite, and the J.P. Morgan Reserve Card. Overall, there are fewer cards on the market that offer primary insurance for rental cars (compared to those with secondary insurance).

Secondary insurance: For those with secondary insurance on their card, your cardâs insurance will only activate after youâve gone through another insurance. This means youâll need to file a claim with a different insurance first (such as with your primary driving insurance, or the rental car companies).

Note that in some cases, if your card advertises secondary insurance, but you donât have primary insurance (for instance, if you donât own a car) the cardâs insurance will become your primary insurance on a rental car. Before declining the rental companyâs waiver, however, contact your issuer to make sure this option is available.

What Car Rental Insurance Typically Covers

Generally, your credit cardâs car rental insurance wonât cover damage to property outside the rental car, injury to others, and potential lawsuits. Additionally, you likely wonât be covered if your belongings are stolen from inside the car, nor if you have to pay ambulance bills. Of course, some of these situations may be covered by your normal car insurance, your health insurance, or your homeowner’s insurance.

In most cases, credit cards neglect covering rented luxury cars. However, there are a couple of exceptions. Chase Sapphire Preferred and Reserve holders can receive coverage for âselected modelsâ of BMW, Cadillac, Lincoln, and Mercedes-Benz. Citi also offers a few cards that simply cover up to $100,000 worth of damage to road-worthy four-wheeled vehiclesâregardless of make or model. American Express also provides a premium protection program that covers pickups, vans, sport-utility vehicles, and luxury vehicles valued above $50,000.

You also may be unable to utilize a cardâs insurance on car-sharing services like ZipCar or car2go. Instead, youâll probably only be covered on rentals via traditional car rental companies. To see if your card covers car-sharing services, check with your issuer.

Additionally, some credit cards do not provide coverage outside the United States. Other cards do, but they may exclude certain countries. Commonly excluded countries include Israel, Ireland, and Jamaica. Youâll need to confirm with your issuer to check if the country youâre visiting is included in your cardâs coverage.

In some cases, you may also not receive coverage if you book your car rental completely on points. If this is the case, you may need to pay with your card for at least one day to trigger coverage. Note that Chase is an exception to this; booking through Chase Ultimate Rewards while using points obtained from either Sapphire Preferred or Reserve still qualifies for rental insurance coverage.

Finally, some cards wonât cover car rentals that last longer than 31 days. There are also some that only cover up to two weeks. If you are planning to rent a car long-term, youâll likely need to end the rental within your cardâs insurance window. Then you can start a new rental.

How To Check If Your Credit Card Has Car Rental Insurance

If you are unsure if your credit card has car rental coverage, the easiest way to check is by reading through your cardâs terms and benefits. If you do not have an up-to-date copy of your terms and benefits, contact your issuer to get a new version sent to you. You may also be able to access a digital copy through your credit cardâs online portal.

You can also call your cardâs customer service line and ask your representative if your card has car rental insurance and what that insurance covers.

How To Use Your Credit Cardâs Car Rental Insurance

While using your credit card for car rental insurance may save you money, it doesnât come without its own set of hassles. Those looking for simplicity might want to sign the rental car companyâs waiver instead. Hereâs a look at what using your cardâs insurance may entail:

How To Apply Insurance To Your Rental

After youâve confirmed that your credit card offers car rental insurance, youâll usually need to book the rental with your card. Once you do that, youâll then need to decline the rental car companyâs CDW or LDW.

In some cases, rental companies require proof that your card offers insurance. If this is the case, it may be handy to print out a copy of your cardâs terms and benefits that you can show the rental car associate.

You also must make sure that all potential drivers of the car are listed on the rental agreement. This is especially true of the driver at the time of the accidentâyour issuer may void the insurance coverage if a different person is behind the wheel.

How To File A Claim

Processes vary from issuer to issuer, so youâll need to contact your cardâs issuer to find out what youâll need to submit a claim and how. In most cases, youâll be asked to share documents related to the rental car and any damage sustained. These documents could include an accident report, a police report, a rental agreement, repair estimates, and photographs.

Final Thoughts

If you book a rental car with the right credit card, you may be able to save lots of money while still receiving proper collision coverage. This means you can travel without worrying about spending money on unnecessary expenses. With plenty of credit cards to choose from, youâll likely be able to find one that matches your spending habits, too.

Curious which cards are best overall for travel? Check out the Merchant Maverick article on the best business credit cards for travel perks.

The post Credit Cards With Car Rental Insurance: The Complete Guide appeared first on Merchant Maverick.

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July 3, 2019

How To Register Your Business: The Complete Guide

Registering for things is one of those annoying but unavoidable parts of life, whether you’re registering for school, a fishing license, or a business permit. For businesses in particular, registration legitimizes your business as a legal entity in the eyes of your local, state, and federal government. Registration also offers certain protections for your business—for example, when you register your business’s name, other businesses in your state are prevented from using that same name. Whether you’re starting a T-shirt company, a coffee shop, or even an Amazon business, your business will be subject to certain registration requirements.

Read on to learn about the various ways to register your new business to ensure that you meet all of the legal requirements you need to open up shop.

1. Decide On A Business Structure

If you haven’t already decided on a legal structure for your business, now’s the time to do it. If you have a small, one-person operation or run your business with your spouse, you may choose to register as a sole proprietorship. Other popular business structure options include a limited liability company (LLC) or corporation (C-Corp). In all, the most common types of business structures include: Some other types of business structures include:

Sole Proprietorship
General Partnership
Limited Partnership
Limited Liability Partnership
Limited Liability Limited Partnership
C-corporation
S-Corporation
Limited Liability Company (LLC)
Nonprofit
Cooperative

Be sure to read up on the pros and cons of each business type before deciding on which structure works best for your business. Check out our guide to types of business structures to learn more.

It may help you to know that most small businesses are sole proprietorships. With a sole proprietorship, you may run your business under your own legal name, or under a different name or DBA (“doing business as”) if you wish to separate your personal and business identities.

2. Register Your Business Name

The way you register your business name will be slightly different, depending on the type of business structure you are using.

Sole Proprietors: If you are using a DBA (company name other than your legal name), you will likely need to register your business name with your state or county by filing a DBA, also sometimes called a fictitious business name registration. Registering your business name prevents anyone else from using the same business name, and is also required in most states. Usually, you should be able to file a DBA with your state or county clerk’s office. Before filing, you’ll also need to make sure no one else is using your chosen business name.
LLCs & Corporations: When you set up an LLC or corporation, you will register your business name with the state at the same time. Again, the rules and processes vary from state to state, so you will need to check with your state to find out how to register your LLC or corporation at a state level.

Optionally, you may also wish to register to trademark your business name, which protects the name of your business and its goods/services on a national level. Check with the US Patent and Trademark Office if you want to register a trademark for your business name or logo.

3. Register Your Business With The IRS

Next, it’s time to register your business with the IRS to get your Employer Identification Number. An EIN is like a social security number for your business that identifies your business to the IRS for tax purposes. If you do not have any employees, registering with the IRS is optional and you can use your social security number to file taxes instead. Aside from sole proprietorships and single-owner LLCs with no employees, most other businesses will need to register with the IRS and get an EIN.

4. Register For Business Licenses & Permits

The local business licenses and permits you need vary depending on your location. For example, in the city where I live, all businesses are required to file for a “Business Tax Certificate,” which registers you to pay local business taxes.

You may also need to apply for state-issued business permits, depending on your industry. Plumbers, dry cleaners, restaurants, and various other business types all have state-regulated permits they need to apply for. For example, if you plan to open your own catering business, you will need a state health permit.

Federal business licenses are also required for certain industries. For example, if you are opening your own bar, you will need a federal permit to sell alcohol.

5. Register With Your State’s Revenue Office

If you live in a state where you are required to charge sales tax, you will need to apply for a sales tax permit, also called a sales tax ID or license. This applies to almost all businesses that sell tangible goods—even if you only sell online. Typically, you apply for a sales tax permit through your state’s Department of Revenue. Your state may ask for your EIN during the tax registration process, so make sure you register with the IRS before applying for your local tax ID. You may also need to supply your business license and business bank account.

Certain types of businesses may not be subject to sales tax; make sure you know the rules and regulations in your state before you assume that you don’t need to charge sales tax.

Do I Need To Register My Small Business?

Not all businesses need to register at a state or federal level. If you have a sole proprietorship operating under your legal name and with no employees, you don’t need to register as a business entity with your state or register for an EIN. However, even freelancers will likely still need to file for a local business permit in their city or county and will be subject to local business taxes. Of course, all businesses will also need to pay federal and state business taxes come tax season.

Other Important Things You Need To Start A Business

Domain Name: While not legally required, a website is essential for most businesses, and the site’s domain name matters. In fact, the domain name matters so much that you should check domain availability before choosing your business’s name. Your domain name doesn’t have to be the same as your business’s registered name, but it should be chosen carefully and in accordance with your brand and services. You can register your domain name with any qualified registrar.
Business Bank Account: This isn’t really a type of registration but it’s an important part of establishing your business as its own entity. You should be able to open a business bank account once you have legally registered your business’s name, received your EIN, and received your local business license.
Merchant Account: A merchant account is another important business establishment step for most businesses. You will need to set up a merchant account with a bank or payments company before you can process any electronic payments for your business. Merchant accounts are kind of our thing, so I encourage you to read our in-depth article on the best credit card processing companies for small businesses.
Business Insurance: Business insurance provides essential protection for your business and should be set up early on in the process of starting your business. Learn about the different types of business insurance so you can figure out what kind(s) of insurance you might need for your business.

Final Thoughts

Almost all businesses are subject to some registration requirements, such as registering your business name with your state, registering for your federal tax ID, and registering with your state tax board. Realtors, bar-owners, mechanics, and other specialized businesses will require additional permits and licenses. Yes, business registration can be a pain, as it’s one more thing to add to your to-do list, but it’s pretty easy and straightforward in most cases.

Once you are all registered with the appropriate entities, you may need to start shopping around for business insurance, business financing, accounting software, and other startup necessities. Lucky for you, we have posts on all those topics and more in our Merchant Maverick Blog, so head on over for a wealth of free business startup information.

The post How To Register Your Business: The Complete Guide appeared first on Merchant Maverick.

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What Is AnnualCreditReport.com?

How To Get Your Report

What To Look For When You Get Your Reports

What To Do If You Find Mistakes

Are There Disadvantages To Using This Service?

On New Clover Products

On Clover Dining

On Clover Integrations

On Clover Hardware & Processing Bundles<img class="alignnone size-full wp-image-26448" src="https://www.shopping-cart-reviews.com/wp-content/uploads/sites/9/2019/08/merchant-maverick-interviews-clover-ceo-john-beatty-2.png" alt="" width="2000" height="1331" />

What Is A Revolving Line Of Credit?

What Is A Non-Revolving Line Of Credit?

Revolving Line Of Credit VS Non-Revolving Line Of Credit

Borrowing Limitations

Maintaining Your Account

Interest Rates

Maximum Borrowing Amount

Which Is Right For Your Business?

Where To Find Revolving & Non-Revolving Credit

Final Thoughts

Â < $500K Investment

1. Kona Ice

2. Ben & Jerry’s

3. Maui Wowi

$500K â $2 Million Investment

4. Sonic Drive-Thru

5. Dairy Queen

6. MELT SHOP

Multi-Unit Investment

7. Panera Bread

8. Darden Restaurants

Final Thoughts

What Is A Home Equity Loan?

How Home Equity Loans Can Be Used To Start A Business

Equity Loans For Starting A Business: Pros & Cons

Pros

Cons

Final Thoughts

Defining An Issuing Bank

The Issuing Bank’s Role In Payment Processing

Issuing Bank VS Acquiring Bank

How Important Is The Issuing Bank To Merchants?

Common Small Business Expenses

Business Licenses & Permits

Business Insurance

Equipment & Supplies

Office Space & Utilities

Inventory

Employees

Marketing

Business Software

Professional Services

Other Costs

How To Calculate Startup Costs

What To Do If You Donât Have The Money

Tax-Deductible Startup Costs

Final Thoughts

What Is A Digital Wallet?

How Is A Mobile Wallet Different From A Digital Wallet?

What Mobile & Digital Wallets Mean For Merchants

Payment Security

Fast Checkout

Convenience

Do You Need To Accept Mobile & Digital Wallet Payments?

How Credit Card Car Rental Insurance Works

Primary Insurance VS Secondary Insurance

What Car Rental Insurance Typically Covers

How To Check If Your Credit Card Has Car Rental Insurance

How To Use Your Credit Cardâs Car Rental Insurance

How To Apply Insurance To Your Rental

How To File A Claim

Final Thoughts

1. Decide On A Business Structure

2. Register Your Business Name

3. Register Your Business With The IRS

4. Register For Business Licenses & Permits

5. Register With Your State’s Revenue Office

Do I Need To Register My Small Business?

Other Important Things You Need To Start A Business

Final Thoughts

On Clover Hardware & Processing Bundles

$500K â $2 Million Investment

What To Do If You Donât Have The Money

How To Use Your Credit Cardâs Car Rental Insurance