According to a US Bank study, the vast majority of businesses fail because of cash flow problems. Today, you can find a myriad of options for small-biz payments. So, what’s important to know in this regard? What to expect from Discover? Just read below and you’ll know.
Small Business Payments: Discover It Business Card
Tens of millions of small businesses exist in the US. They account for an enormous influence on the country’s economy by creating jobs, innovating, and bringing economic impact. When it comes to small-biz financing, small business credit cards play an increasingly important role in this concern.
This is especially true of entrepreneurs being ineligible for traditional business loans. Also, this is of special importance to those who can’t access networks filled with deep-pocketed family members, friends, and colleagues.
Let’s take Discover. Small businesses aren’t something new for the payments company. Discover has been playing an active role in the market since the 2000s as the latter began to really take off. However, after the recession of 2008-2010, Discover started to back away from the space.
In September 2018, the payments company added to its commercial card product suite. Namely, the company offers its Discover It Business card as a smart, simple and rewarding option.
As Meera Sridharan, director of small business at Discover Financial Services, has noted, one of the major differences with how small business operation differs from that of a consumer is on the back end, with the organization of purchases. The company has discovered that keeping track of expenses is the top concern for small business owners.
Overall, though there’re higher potential reward costs, card issuers such as Discover take enough interest in the small-biz credit card market.
If you want to make money, you can’t do without spending money. Loans from banks are one of the options entrepreneurs have traditionally been choosing. Small businesses, specifically online ones, usually need less. Whatever it is, today, you have more financing options than years ago, and this is particularly thanks to alternative online lenders.
As you know, the longer a business has been around, the more chances are it’ll go on in the same way. To overcome all the financial hindrances on your way, especially during the 1st few years, you should work with a reliable and experienced funding provider.
Of course, you can find more than one funding option out there such as business loans and credit cards or grant opportunities. However, consider turning to a reputable alternative online lender like FirstAmericanMerchant.com to tap into the world of online lending.
Increasingly, more and more business owners are choosing merchant cash advances and other funding options from alternative lenders like First American Merchant over traditional loans. FAM is rated A+ by the BBB, and is an award-winning processor and funding provider. First American Merchant specializes in the high risk field and offers the lowest rates for small-biz payments in the industry.
By the way, Discover isn’t alone in all this. AmEx (American Express) is also working on launching new cards to meet the demand in the market. In addition, Visa is interested in catering to female small business owners.
According to Forbes, business cards can get you higher risks as compared to consumer cards since the product category is no more a subject to the consumer protections given the Credit CARD Act of 2009. So, take the time to study all the available funding options to make the right choice for you and your company.