You need to set up a corporate structure, hire a book keeper, separate the business money from your personal expenses (corporate bank account, business credit card etc.) You should be on top of the financials from day one.
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Other popular methods are borrowing money from family and friends, using home equity lines of credit, bank loans, Small Business Association loans, and even credit cards (Hisrich, et al., 2010, p. 310-313).
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Outsourcing services, whether a bank outsources its credit-card business or a hotel its reservations, is harder to manage than outsourcing the manufacture of chips or tyres.
By late last year it was clear that Bank One's credit-card business had deteriorated.
According to the Federal Reserve, only about one-third of small-business applications for bank lines of credit were approved in 2009.
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For a bank to boost capital by withdrawing credit or exiting important business lines would be counterproductive.
The biggest doubt is over Bank One's credit-card operation, a business in which it and Citibank are the market leaders.
This bet on the strengthening consumer and business credit borrower may help the bank boost earnings in every quarter this year.
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The total service fees that Bank of America earns from its debit and credit card business was relatively stable prior to 2009 aided by high interchange fees and card fees in the US relative to the rest of the world, which helped generate strong revenues for the card industry.
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Worse, credit quality in other parts of the bank's lending business has been falling too.
It pursued the credit card business in a way that no other bank was doing at the time.
The sting in the IMF tail appeared to be calls for the government and the bank to do more to protect the poor, get credit to business, invest more in infrastructure and, if growth continues to flatline, to consider a temporary cut in VAT in future.
In January, some small-business borrowers at Bank of America were asked to repay their credit lines in full.
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It's unclear why Credit Suisse Strategic Partners, the secondary fund business of the bank, pursued the Reijtenbagh venture.
The bank is exploring a sell-off of its branches and credit-card business in America, to refocus on corporate banking there.
After 23 years in business the couple relies on a patchwork of bank lines and credit cards, with interest rates from 12% to 15%.
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The extension of credit to a small business is one of the riskiest things a bank can do, but it wins taxpayers' unequivocal support.
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Tired of earning profits through conservative business loans, the bank branches out with an aggressive purchase of credit card clearing company in Miami, ICon.
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"They are like a partner in my business, " he says of the credit-card networks and bank issuers.
Small businesses that do tend to carry balances may want to consider using cards from Bank of America, the only major credit card company that has voluntarily implemented small-business-friendly protections.
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Today a bad credit score can make it even harder to get bank financing for starting or expanding a business.
Already armed with a small business card from Capital One, she figured why not use the bank's credit card-processing services, too?
Almost any bank with a lot of retail business except for sub-prime lending and perhaps credit cards can expect its minimum capital to fall.
The growing adoption rates of payment technologies by small-business owners might partially explain why credit demand for working capital from small firms remains stubbornly low, even as their balance sheets and credit-worthiness improve, according to Robb Hilson, head of Bank of America small-business segment.
This is unlike the case witnessed in all its competitors like Credit Suisse, Deutsche Bank and Morgan Stanley who posted considerable growth in their debt trading business for the quarter which saw a marked improvement in the debt markets from growing optimism on recovery plans for the Eurozone and the prospect of a sustained US economic recovery.
The truth is that the bank's bosses worry that the untried debit card might cannibalise some of its highly profitable credit-card business.
He said that he foresees continued strong results as the bank builds more branches it currently has 50 and develops its newly opened credit-card business.
It's not uncommon for a bank to increase interest rates on the customers they assume in a merger, said Erik Salmon, business credit advisor at BusinessCreditSuccess.com.
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Banks could rightly protest that as long as they are healthy, their dividends are not the regulators' business, but bank regulation is now simply another weapon in the government's arsenal against the credit crunch.
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The bank's credit culture is consistent throughout the cycle, meaning that it loses market share in boom times and wins business in environments like this one.
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