Adequate finance is required to meet the various commitments arising out of
business transactions. The financial requirements of business can be broadly classified into two categories, viz., short-term sources and long-term sources.
Short-term finance is required to meet the working capital requirements of a business firm. These are the funds required for a period up to one year. The sources of short-term finance are trade credit and bank borrowings.
Trade credit refers to the type of credit provided to customers by suppliers of goods in the normal course of business transactions. This is a kind of deferral payments on the part of buyer. It is the most popular type of credit among the traders. Small firms depend on this type of credit heavily as they find it difficult to obtain bank finance. Trade credit is usually granted on an open account basis. This implies suppliers sending goods to the buyers on credit and buyers accepting the same and agreeing to make payment as per the terms and conditions.
Trade credit becomes a routine activity between the suppliers and the buyers. Trade links are established between them. The open account credit appears on the buyer’s balance sheet as sundry creditors. Trade credit also takes the form of bill payables. This happens when the buyer signs and accepts a bill of exchange to evidence the credit sale transaction. A Bill of Exchange recognizes an obligation on the part of buyer.
Banks constitute an important institutional source of financing the working capital requirements. Banks consider various aspects such as production and marketing plans of the customer while determining the credit requirements. The amount so determined by the bank is known as credit limit. Bankers are required to fix separate credit limits for various types of credit facilities to be extended to various types of borrowers.
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Tags: business credit, Business Credit Cards, Business Lines Of Credit, small business credit cardsbusiness credit, Business Credit Cards, Business Lines Of Credit, small business credit cardsShare This
My system teaches people that the proper use
of credit is the fastest way to speed up your profits
in
real estate investing.
And you can use this system no matter what your
own credit score is.
What you must understand is how to use a newly
created business name to go out and get business
credit cards and lines of credit for your real estate
investing activities.
My step by step program shows you exactly how
to do this the right way. So you can get the cash
you need to buy and flip property for a quick profit.
Some people wonder why it is so good to get cash
for real estate investing with this trick.
Well here are a few reasons -
1. No matter how much cash I get with these business
cards, this debt has no impact on my credit score. It
is invisible and will not show up on anyone’s personal
credit report.
2. Low cost to access cash from business lines of credit,
unlike your typical refinance charges.
3. I want to defer any expense I can with a business
credit card until the property is sold, even if that is not
for 5 years.
4. Everyone gets a much better cash on cash return
when you defer expenses with business credit.
5. In many cases my mortgage forces me to make a
principal payment every month. So now I can return
that cash flow back into my pocket without costly
refinance charges every 2 years.
6. And finally, I can triple my cash flow every
month, which lets me purchase more great real estate
3 times faster, and retire in luxury 20 years faster
than the average american!
HERE ARE THE TRICKS —————————
But, you need to know some of the dirty tricks
the credit card companies try to pull on you when
you are following this system.
—some business lenders will randomly pull credit
to see if you are personally carrying a lot of debt as
it relates to your available credit. If you do not
keep most of your debt shifted to the name of a new
business you create you can get a nasty surprise.
The bank will sometimes raise your interest rate when
you begin to carry a lot of debt in your own name. This
is another great reason to keep debt out of your own
name when possible.
—some business credit cards will lock down your line
of credit during the first month you start using it while
they wait for you to make the first payment. So if you
think you will need all the cash before the first monthly
payment is made, just take all the cash out at once
when you get the card.
—and my favorite way to use these cards that no
one else talks about is to transfer an existing personal
credit card balance onto a new business card you just
received.
You can call up the bank that issues you a brand new
business credit card and tell them you want to make a
balance transfer. Then you can give them the account
number for one of your maxed out personal credit cards
and they will put that debt into the business credit card.
This is the best way to make your personal debt
disappear from public records and improve your personal
credit score!!!
Of course you must still pay this debt back the same
as if it was still in your personal name. But when it’s
on your business credit card it’s invisible and your credit
score will jump up!
——————- ——————–
And see why my HOW TO BEAT THE SYSTEM in
real estate investing, is the ultimate NO MONEY
DOWN system that will make you rich quickly.
When you buy real estate with cash from a business
line of credit you are a CASH BUYER, but you have
not used any of your own money for the down payment.
My system shows you how to do this no matter WHAT
YOUR CREDIT SCORE is!
Don’t limit your real estate investing to gimmicks
like creative financing.
Buy anything you want with real CASH. Just go out and
get it using my HOW TO BEAT THE SYSTEM in real
estate investing.
Sincerely, Thomas Kish
President of CashFlowExperts.Biz
Tom is a full time real estate investor. He has purchased and sold over 5 million dollars worth of real estate in less than 2 years.
Tom is an expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM of real estate investing!
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Tags: business credit, no money down, real estate, real estate investingbusiness credit, no money down, real estate, real estate investingShare This