Lending Library

The unemployment level in the United States is at its lowest point in 50 years, which means different things to different sectors of the economy.

For many workers, this is generally good news–it shifts the power dynamic toward employees. The theory is that they have more choice, although other factors are at play that prevent us from saying that 2019 is an unambiguously great time for labor.

Small business owners, however, may look at the statistics with some queasiness. An environment of low unemployment makes it harder to attract and keep good employees.

Some companies might respond to this environment by trying to “churn and burn” your staff. By reducing pay and the amount of training a workforce needs, some businesses attempt to adapt to a future where a constant stream of workers are hired for short amounts of time before they quit or are terminated.

Not only is this strategy morally dubious, but it is also costly. Studies show that the price of losing an employee can amount to tens of thousands of dollars, even for small businesses. One study contends that the cost of losing and replacing an employee can cost up to double the lost employee’s annual salary.

A survey of human resource managers found that some businesses believe over half of staff turnover is caused by employee burnout, defined as job dissatisfaction marred by poor pay and an overwhelming workload.

“As the economy continues to improve, and employees have more job options, companies will have to provide more compensation, expand benefits and improve their employee experience,” business author Dan Schawbel said of the findings. “Managers should promote flexibility, and ensure that employees aren't overworked, in order to prevent employee burnout that leads to turnover.”

Employee burnout appears to be an issue at businesses of all sizes across the country, but the survey, conducted by analyst firm Kronos, said it seems to get worse as employers grow in size.

“Though burnout touches organizations of all sizes, larger organizations seem to suffer more,” the researchers said. “One in 5 HR leaders at organizations with 100 to 500 employees cited burnout as the cause of 10% or less of their turnover while 15% of HR leaders at organizations larger than 2,500 employees say burnout causes 50% or more of annual turnover.”

Treating your employees well can have benefits that go far beyond the walls of your business. Happy employees are happy customer –a business that treats and compensates its workers fairly can impact its whole region.  

“Beyond boosting companies’ competitiveness, improving service workers’ jobs could have a huge impact on the US economy,” Zeynep Ton wrote recently in the Harvard Business Review. “It would increase the earnings and spending power of the working poor and reduce the enormous amount of public assistance they receive.”

Many HR experts today think about employee “engagement,” a term that attempts to explain how to hire and maintain top talent. Ideally, not only does an engaged employee have a decent work-life balance, but he or she feels fulfilled, at least on some level, by the job.

“Engagement has been the workforce buzzword for the past decade,” explained Mollie Lombardi, an expert in hiring matters, in a statement. “We talk about ensuring that employees are challenged, appreciated, and in sync with strategic objectives, but even when they have an intellectual or emotional engagement with their work they sometimes still feel overwhelmed.”

She recommends that employers take a customized approach to each employee. Compensation and workload are huge elements for keeping employees happy, but so is a feeling of achievement and community as part of a staff.

“While not all burnout can be eliminated, much of it can be avoided using critical strategies that balance consistency and personalization of schedules and workload; leverage managers as models for how their team can achieve work/life balance; and implement tools and technology that proactively manage burnout or otherwise support these efforts,” Lombardi continued.

Probably the oldest customer service mantra is that the customer is always right. 

Writing in Forbes, customer experience expert Shep Hyken believes that we should adapt this motto toward how we treat employees, with a bit of the Golden Rule thrown in for good measure.

In essence, an employer should treat employees the way you want your customers to be treated.  

“If top management berates those in middle management, leadership cannot expect line-level employees to be well-treated by their direct supervisors–even if there is something in a mission statement somewhere that makes the proper treatment of employees a high priority,” Hyken maintains. “The do as I say, not as I do approach doesn’t work.”

While the dynamics between the nation’s employees and employers will continue to shift, treating your staff with dignity is a time-tested method for growing a business and saving money in the long run.

Started in 1939 by the proud son of small business-owning parents, Rick Segal, Mom and Pop Business Owners Day is celebrated every March 29. Mom and pop businesses make up 54% of all small businesses in the United States and are quintessential examples of the American Dream — hard-working men and women building companies of all kinds from the ground up.

The Challenges Mom and Pops Face

However, running a business is not always as dreamy as many business owners would like, especially when it comes to finding funding. According to a recent Lendio study, on average, mom and pop businesses take on significantly smaller loans than other businesses, but they leverage a greater percentage of their monthly sales in order to take on that financing.

“Unfortunately, the traditional lending ecosystem isn’t set up to support mom and pop shops,” says Brock Blake, CEO and founder of Lendio.

Mom and pops have an average credit score that is 30 points lower than other businesses. Additionally, their time in business tends to be nearly two years less than non-mom and pops,  and their monthly revenue is $35,000 less on average. These facts often sink a mom and pop shop’s chances of getting funding from traditional lenders.

Mom and Pops’ Unseen Value

Access to small-dollar loans allows mom and pop businesses to keep their doors open and increase their economic impact. According to a national study on the economic benefits of online lending to small businesses, for every dollar lent to a small business, its sales increased an average of $2.31. Even more, that same borrowed dollar creates an average of $3.79 in gross economic output to local communities.

The importance of independent businesses is undeniable. Local restaurants return more than twice as much money per sales dollar to the local economy than national chains. And in retail, independent stores return more than three times as much per dollar in sales than their big-box competitors. But their contributions extend far beyond the economic value they provide.

Mom and Pops in the Community

“Mom and pops aren’t solely focused on their own success,” says Blake. “These businesses create neighborhoods, enhance the sense of community, carry on local traditions, and contribute to local causes that big businesses just can’t.”

Lendio’s mom and pop customers come from all over the U.S., representing industries ranging from restaurants and healthcare to manufacturing and education. Lendio is proud to support these independent businesses on Mom and Pop Business Owners Day and beyond. Mom and pops represent 53% of the customers funded through Lendio’s online marketplace, and their loans account for 34% of the total loan volume funded. Through more than $260 million in loans, Lendio has facilitated financing for more than 7,000 mom and pop businesses across the country.

Yes, credit card interest is deductible for businesses. But with recent changes, how much you can deduct has changed.

Is business credit card interest deductible for small businesses?

Credit cards are a great tool that many businesses use to keep themselves running. If you don’t pay your balances in full at the end of each billing cycle, you’ll probably end up paying some interest.

The long answer to whether or not you can deduct credit card interest on your taxes depends on the situation. Let's take a quick look at when you can write off your business credit card interest:

• Most (if not all) business-related credit card interest. Interest you pay on business credit cards is deductible when used for business-related expenses. The interest deduction also applies when the debt is directly related to your business operations, even if it's a cash advance. As long as it went toward operating your business, you can write it off.
• Different forms of interest within the paid year. You can only deduct qualified interest during the year in which you incurred the debt or made the payments.
• Your business credit card's annual fee. Some business credit cards come with an annual fee. If you have one of these credit cards, then you can write off the annual fee on your taxes.

Remember to keep your credit card statements and receipts to smooth the process of filing your small business tax returns. The IRS provides a host of resources to help you understand this process better, but in some cases, it may be a good idea to hire a qualified professional to do your taxes.

When is your business credit card interest not tax deductible?

One reason to opt for a business credit card rather than using a personal credit card for your business is that interest on a personal credit card isn’t usually tax deductible. Unless you can separate expenses from personal ones on your personal credit card, it can be hard to write off the interest.

Additionally, how much interest you can deduct has changed with the Tax Cuts and Jobs Act. When you file your taxes, businesses can only deduct up to 30% of their interest payments.

How to make claiming credit card interest easier.

Claiming credit card interest on your taxes might sound difficult. Here are some steps to make it easier for you:

• Don’t use a personal credit card for business purposes. Maintain separate credit card accounts for easy accounting.
• See if you can find an automatic way of tracking your credit card expenses and the interest that you pay on them.
• Hire a professional accountant or tax lawyer who will evaluate your specific business situation and give you a clear picture of how you can take full advantage of your small business tax deductions.

Small business tax deductions can add up to a significant amount of money back in your pocket each year. Remember that hiring a professional can help you maximize your tax return so that you can continue investing in your business.

Congratulations. You’ve beaten the odds and turned your retail dream into a small business success story. Maybe it took a few years, or maybe it happened much faster. Either way, your hard work has paid off and you’re at the helm of a profitable business, or at least one that’s breaking even month in and month out.

So, what’s next? If you’re like other ambitious business owners, the answer is probably pretty straightforward. It’s time to start growing your retail operation. You might have some ideas for getting started. It’s also possible that growing your business is a new topic, and you could use a little inspiration.  

In either case, the following tactics will help. We’ll give you proven growth initiatives that you can use for creating your own retail expansion strategy. If you already have ideas of your own, you can validate them against our list, and if you need some inspiration, our practical tips will make getting started a breeze.  

1. Target a Broader Audience

One of the most straightforward ways to expand your retail business is to target a broader audience. For example, maybe you run a retail shop that specializes in vintage women’s clothing. To begin targeting a broader audience, you could start selling men’s vintage clothing as well. Depending on the demographics of your market, this move could effectively double (or more) the size of your target audience.

There is, of course, some risk in making such a drastic change to your underlying business strategy. To mitigate this risk, we recommend starting small. For example, perhaps you stock a few men’s accessories like sunglasses, wallets, and rings instead of adding a full line of men’s clothing to your inventory. This technique allows you to test your audience’s appetite for this new product line. The goal is to avoid investing too much capital in inventory you may not be able to move.

Another approach you can take is to participate in some kind of a local market or to host a pop-up shop of your own. The goal of these events is typically to introduce yourself to a new audience, which makes them a perfect testbed for your expansion strategy. Shoppers will approach your brand without the biases or preconceived notions of your regular shoppers, allowing you to test a broader audience’s appetite for a more diversified product catalog.

Regardless of which approach you take, if you see initial success, begin further initiatives that’ll help you better reach this new audience. For example, you may want to send a few emails informing your customers that you now offer men’s merchandise and update your shop’s interior design. Similarly, you may want to move from offering a few accessories to a full line of clothing. 

2. Expand Your Product Offerings

Another approach to expansion is to begin offering a wider variety of products. While similar to the first strategy, there are some differences. It’s not quite as dramatic a shift as beginning to target a very different secondary market. Instead, the goal is to better serve your primary audience by offering them more products that they can purchase from you.

The best approach is to consider complementary product lines. If your retail shop specializes in cooking supplies, you could begin offering bartending or mixology tools. If you’re a bookstore or a record store, you could blur the retail lines a little bit and set up a small cafe so your shoppers can sip drinks while they browse books or listen to music.

Similar to our first point, you will want to expand in small steps. For our cafe example, you could start with a hot plate and a stovetop espresso maker before investing in a full-size machine. Once you’ve run enough tests that you’re confident in your new offering, it’s time to take the next step and invest capital in the equipment and inventory you need to fully commit to this new segment of your business.

3. Kickstart Your Marketing

No, you don’t need to be Don Draper, but if you want to grow your business, you do need to market it effectively. That means you should do more than send a monthly email or run an advertisement in the local paper. You need a comprehensive strategy that markets your business in the channels and mediums your potential customers use to find and research new businesses.

Up until the advent of the internet, marketing was tough for small businesses. Most of the channels and media for reaching customers like TV, radio, and billboards were expensive and dominated by larger brands. But the internet leveled the playing field. We’re generalizing a bit here, but the way your customers consume media has almost certainly changed. People rely more on online tools like social media, review sites, search engine queries, and online videos to find businesses and engage with brands than they do traditional media.

This shift helps you because marketing online is often far more affordable and targeted than traditional media. Not only can you maintain a sizeable marketing presence cost-effectively, but you can ensure the money you do invest only goes toward reaching your specific target audience.

The specific marketing tactics you use will depend heavily on the preferences of your audience, as well as your skill level and available financial resources. With that in mind, here are a few ideas that can get you started:

• Customer reviews: Despite the shift toward digital marketing, word of mouth is still king. Claim your profiles on popular review sites like Yelp and Google, then incentivize happy shoppers to leave you great reviews.
• Email marketing: It may be one of the oldest digital marketing channels, but email is still highly effective. Make it a habit to regularly send a variety of marketing messages including promotional email and newsletters.
• Social media: You don’t need a presence on every platform. Instead, focus on the ones your customers use most. For retail, Instagram is particularly powerful because of its visual nature.
• Targeted advertising: Using social media platforms and Google AdWords, you can run highly targeted and cost-effective marketing campaigns.

Outside of these tips, you’ll want to ensure that you have the right tools at your disposal. One of the most powerful for retailers is a modern point of sale system (POS). This system can help you reach new customers and build repeat business with tools like customer loyalty programs, gift cards, and integrations with marketing platforms like email marketing software. Many POS allow you to collect email addresses right at the point of purchase where they’re automatically synced to your email list and available to receive your next marketing emails.   

4. Start Selling Online

Tapping into the booming world of e-commerce is another surefire way to expand your retail business. According to Statista, retail e-commerce sales are expected to reach over $550 billion in 2019. And with e-commerce platforms more affordable and easier to use than ever, there’s never been a better time than now to start selling online.  

Here are a few tips to help you start selling online:

• Pick the right technology: Use a reputable e-commerce platform like BigCommerce or Shopify. Ideally, it will integrate with your POS system and other business tools to streamline your operations.
• Brand your shop: Your online store is an extension of your online business, and as such, it should represent your brand. Incorporate colors, imagery, and even tone of voice into your online store’s design.
• Marketing matters: Your online shop is almost a separate business of its own. To succeed, you need to set aside marketing dollars and create a dedicated strategy for reaching new customers. This plan and investment should be distinct (but it can integrate) with what you’re doing to market your brick-and-mortar business.
• Consider online marketplaces: Getting started on eBay, Amazon, and other marketplaces is often easier than building your online store. Plus, you can tap into shoppers that are already on those marketplaces and ready to buy.
• Use experts if necessary: E-commerce isn’t easy, especially if you aren’t tech-savvy. Don’t be afraid to hire a freelancer or agency to help you with everything from store design to marketing to operations and logistics.

Adding an online store to your business can certainly be a challenge. As we mentioned earlier, it’s like running an entirely separate business, so be sure you have the time and resources to commit to its success.

5. Open a Second Location

It’s a sizable undertaking, but opening a second location for your business is another proven method for expanding your customer base and revenue. However, outside of opening an online store, it’s also the most expensive and time-intensive. You shouldn’t head down this road unless you’ve done your homework and can commit the time, capital, and effort to making it work.

To help you start the planning process and avoid the most common pitfalls along the way, let’s look at some strategies and tips to consider:

• Max out your main market first: Before opening a second location, you want to ensure you’ve done all you can to tap into your local customer base. Otherwise, you’re wasting an opportunity unnecessarily.
• Location is everything: Ideally, you want to locate your second shop in an area where you already have some name recognition, but you want it to be far enough away that it won’t cannibalize your primary store’s sales.
• Formalize processes: When you add a second location to your business, complexity increases. Standardized processes can help you maintain operational efficiency so you can better manage inventory, as well as financial and human capital.
• Set goals: Clear goals will help you stay focused on why you’re opening a second location while also giving you a straightforward way to measure performance.
• Get your financing in order: Expanding locations isn’t cheap. It’s likely that you’ll want to want to seek outside financing in the form of a retail business loan from a bank or other entity. You might also consider venture capital funding if you want to avoid traditional loans.
• Seek expert advice: In your local small business community, there are likely entrepreneurs that are running or have run multi-location businesses. Fellow business owners are often friendlier than you think. Buy one of them a coffee in exchange for a little bit of expert guidance.

There you have it —  proven tactics to power your retail expansion strategy. While none of these tips are easy, they’re all straightforward, proven paths toward growth. It’s unlikely they all will work for your business or situation right away. Our recommendation is to think long and hard about the objectives you’d like your retail expansion strategy to achieve. From there, select the tactic that you think will get you where you want to go most efficiently.

Ready to get financing to fuel your expansion strategy? Learn more about retail business loans.

A survey done by the National Federation of Independent Business (NFIB) showed that record-breaking levels of small businesses are experiencing growing profits and, in turn, investing significantly more money into investing, hiring, and continued growth.

Small businesses are making a number of capital investments, such as purchasing new equipment and vehicles, as well as improving their infrastructure. Many other industry experts predict that small business startups will continue to rise.

Inspired by the success of their peers, entrepreneurs across the country are  springing into action and starting their own businesses. But 30% of new businesses fail during their first two years. About half fail within the first five years.

These figures may seem intimidating. After all, starting a new business is expensive, and you may be putting up your life savings to get it going.

But you shouldn’t be afraid. If you're interested in starting your own small business, here’s what you’ll need.

1. Time

Many businesses fail within their first year because the owners can’t invest enough time in their business. In a market saturated with small business owners, the competition is fierce. Time is one of the most important things you’ll need to create a business plan that will make your enterprise successful.  

2. Money

As a business owner, you’ll need enough cash to hit the ground running. If you don’t have the financial resources you need, you will have to be willing to take out a loan or get a credit card to start funding your business. If you have a solid business plan, the time you need to devote yourself to your business, and the courage to make it grow, you shouldn’t fear taking out a loan.

There are lots of things a small business loan can help you cover costs for:

• Advertising, including a website or business cards
• An accountant or accounting software
• Point of Sale processing equipment
• Licenses and permits
• Business insurance
• Retail, office, or warehouse space
• Legal fees
• Equipment including appliance, office furniture, and machinery

3. Patience and Confidence

The bottom line is that as an aspiring entrepreneur, you need to be patient and confident. There may be things you have to deal with, such as stagnant profits, the loss of money, regulations to adhere to, and more. The overarching point is that staying in the game is worth it. Being patient and having confidence is what it's going to take to make your business succeed.

4. Information and Research

Another thing to research is market trends. You may think you have a brilliant idea, but unless you do research, there’s no way of predicting whether your idea will be successful. You’ll also want to research costs that you’ll need, such as raw materials, space, employees, and everything else that goes into running a business.

The Final Word

It’s a new year, and you know what that means: it’s a great time to consider planning for financial success in 2019.

You probably don’t relish thinking about tax time, but this year’s tax season could be a game changer for your business, bringing with it some new opportunities to save money. Significant alterations to Section 179 were made in the Tax Cuts and Jobs Act (TCJA) of 2017 that can lead to improved cash flow, and that means more funds available for your company.

There's good news in the bonus depreciation allowance, too, with an increased depreciation rate that can be claimed sooner. Both these measures allow you to deduct the assets you need for business activities more quickly and for higher amounts than you could before.

It’s always a good idea to review your options thoroughly before you file taxes. You could find new opportunities for the growth of your business in the fine print. Here’s what you should know about Section 179.

Section 179

Section 179 was first established in 1958, with the intention of stimulating small business investment in goods that benefit the business, simplifying accounting, and reducing the tax burden.

In order to qualify for the deduction, you must use the goods for business for a minimum of 50 percent of the time. The cost of the goods can be deducted in the tax year the goods were “placed in service”—that is, ready to be used in the business.

Under TCJA, the list of assets that are eligible for Section 179 deductions has been expanded and the maximum deduction has been increased, along with the spending threshold.

You might find differences between your local authority and the IRS when it comes to definitions of tangible personal property and real property. Remember that qualifying property for the Section 179 deduction is defined by the IRS and not controlled by local law.

The IRS provides a complete list of qualifying property in Publication 946.

Tangible Personal Property

Tangible personal property is defined by the IRS as tangible property that is not real property. Examples of tangible personal property include fixtures inside or attached to a building, such as refrigerators, office equipment, printing presses, testing equipment, and signs. Numerous improvements to the interior, roofs, heating, security, and fire protection are also acceptable Section 179 expenses.

Machinery and equipment used for manufacturing, production, or extraction, or to provide transportation, communications, electricity, gas, water, or sewage disposal services are considered tangible personal property. Research facilities needed for business activities qualify for the Section 179 deduction, and air conditioners and heaters put into service after the tax year 2015 are also eligible.

Livestock qualifies for Section 179, as well as single-purpose structures for livestock and horticulture. Facilities used in relation to distributing petroleum or primary products of petroleum are also allowed.

Another potential deduction is off-the-shelf computer software purchased and put in service from 2003 and forward

Real Property

Certain property placed into service in the tax year can be treated as Section 179 property. Qualified real property includes certain leasehold improvement property, qualified restaurant property, and qualified retail property.

Generally, the property must be non-residential and meet requirements set out in the Internal Revenue Code. The IRS provides detailed information in "Special rules for qualified section 179 real property" in Publication 946.

Section 179 Limits

Section 179 is subject to two limits: an investment limitation and an income limitation.

Investment Limitation

You can deduct up to $1 million of qualified expenses per year, purchased and placed in service for your business in 2018 and following tax years. A dollar-for-dollar phaseout begins when expenses for the year exceed $2.5 million to a limit of $3,500,000—Section 179 deductions stop at that threshold amount. Both amounts are indexed to inflation.

Investment limitation amounts cannot be carried forward for future tax years.

Income Limitation

Section 179 deductions are not allowed to exceed the taxable income of the business, including wages and salaries. The limitation is calculated after the investment limitation. For example, if the taxable income of your business is $50,000, and qualified expenses total $75,000, Section 179 deductions are limited to $50,000.

Allowances that can't be used because of the income limitation can be carried forward indefinitely.

Bonus Depreciation Allowance

When you have exceeded the limits for Section 179, you're able to recover capital expenses for your business over a longer period and at a slower rate, by claiming depreciation deductions under Section 168(k), referred to as bonus depreciation. A few changes have been made to this allowance, too.

The Bonus Depreciation Allowance (BDA) applies to used qualified property now, as well as new acquisitions. The depreciation limitation has also been accelerated in the TCJA to temporarily allow you to deduct 100 percent of such purchases for the same year.

The cost of goods placed into service from September 28, 2017, through to the end of 2022 is eligible. Starting in 2023, the percentage for depreciation is scheduled to decrease in increments, down to zero percent by 2027 and after.

Though both Section 179 and bonus depreciation are available in the same tax year, claims must be filed in the right order. Claim Section 179 allowances first; then you may proceed to claim bonus depreciation for the amount that remains.

By accessing deductions under Section 179 and the bonus depreciation allowance, you could potentially deduct nearly all the expenses incurred for qualified acquisitions for the tax year—as long as the deductions are claimed appropriately.

Start the Year Right

Beyond researching Section 179, there’s a lot you can do at the beginning of the year to set yourself and your business up for financial success. Stay on top of all the changes to the tax laws, key tax dates, and other essential financial tasks with this Q1 financial planning checklist.

--

This guest article was contributed by Irene Malatesta of Fundbox. Fundbox and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Advertiser Disclosure: Lendio receives compensation for the credit card offers. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Lendio does not include all card companies or all card offers available in the marketplace.

This editorial is from the viewpoint of Lendio, and not endorsed by any 3rd party. The information is accurate at the time of publication. 

*All information included in this article was current on its publication date (June 26, 2018) and is subject to change.

We’ve all been caught in an unexpected spring rain storm. Maybe you thought the worst had passed and you dashed out the door only to be hit by another sudden downpour. For small business owners, those rainy days can happen at any point during the year. That’s why it’s critical to be prepared with a rainy day fund for your business.

While rainy days in business do come in the shape of literal storms causing damage to your property or equipment, for most small business owners, unforeseen expenses pop up rain or shine. Like a trusty umbrella or a shelter from the storm, things like an emergency savings account, a line of credit, or a business credit card are critical for helping your business weather unexpected storms.

Keep your business afloat with an emergency savings account

Most small business owners don’t even think about having a savings account because their budget is so tight. That’s exactly why you should be building savings into your budget. If you treat savings like a monthly expense, you can slowly build a reserve that can help your business stay afloat in an emergency. An account like this can also help your business in the long haul if an opportunity strikes to launch a new product line, expand, buy out a competitor, or purchase some extra inventory at a good price.

How much should you keep in your business emergency savings account? According to SCORE small business advisors, “historical spending patterns are a good starting point in considering future spending plans.” Most experts say six months of operating expenses is ideal for an emergency fund.

Put your mind at ease with a business line of credit

A business line of credit is like keeping an umbrella by your front door in case of unexpected rain. You may not always need it, but knowing it’s there gives you a sense of security. A line of credit gives you capital to draw upon to meet a variety of business needs.

The great thing about a business line of credit is the funds are always there, but you don’t have to use them until you really need them. You only have to pay interest on what you use, and as you pay the line down, you also eliminate the interest charged.

Use a business credit card when you get caught in a downpour

Emergency savings funds and lines of credit are useful and can put your mind at ease, but sometimes, your unexpected business expenses require a more instant source of funding. Having a business credit card or two is a not only a great option for businesses that don’t qualify for traditional small business financing, it’s useful for every business owner to have this type of quick, easy access to working capital.

Another great feature of a business credit card is the ability to earn points you can funnel back into your business. Particularly handy for rainy day emergencies, these points can be saved up and redeemed when they’re needed most. For example, with the The Blue Business® Plus Credit Card from American Express, you can earn 2x the points in select business categories, which you can translate into cash toward business travel expenses, including those last-minute business trips that may pop up.

Rainy days will come—in both business and life. Having emergency funds in place will help you weather the storms, and most importantly, put your mind at ease so you can focus on building your dream business.

This editorial is from the viewpoint of Lendio, and not endorsed by any 3rd party. The information is accurate at the time of publication.