Reviewing business credit cards

andrea

Reviewing business credit cards is an important step when getting a business credit card. Not all business credit cards are the same! In fact, there are some credit cards you should avoid completely.

When reviewing  business credit cards, be sure to consider:

Interest rates:

When reviewing different business credit cards, be sure to compare interest rates.  If you’ve got a lot of financial flexibility and do not have cash flow problems, interest rates may not be as important a consideration as the perks.

Perks:

If you’re planning on putting all business expenses on a credit card and paying down the principal every month, then make sure your business credit card offers perks and benefits. There are a variety of perks, from AirMiles, cash back, gift cards, points and much more. Note that most credit cards that offer substantial benefits charge an annual fee.

Annual fees:

Do not be fooled by the concept of free flights or cash back without considering how the annual fee affects the financial benefit. For example, if it takes three years to collect enough points for $600 off your next flight and your annual fee was $200 per year, you are simply breaking even. Always read the fine print when reviewing business credit cards.

Your business’ overall financial situation:

Is a business credit card really what you’re looking for? Should you be considering all the options, such as debt consolidation, instead? Before reviewing business credit cards be sure to review your overall financial health.

Have you had success reviewing business credit cards? Has reviewing business credit cards saved you money?

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Negotiating credit card rates

andrea

Negotiating credit card rates… You hear about it all the time: people walk into a bank and reduce their business or personal credit card rates from 19% to 10% or even less. But does negotiating credit card rates really work?

Negotiating credit card rates simply means requesting that your interest rate be lowered so that more of your payments go towards the principal sum (reducing the debt) as opposed to going to interest (paying the bank).

The self employed sometimes find themselves in a quick pinch and unable to pay off their credit cards. When in a bind, negotiating credit card rates right away is a great first step.

Consider these tips when negotiating credit card rates:

  • Take a deep breath. Negotiating credit card rates doesn’t have to be painful.
  • Educate yourself.  Before negotiating credit rates take an hour to remind yourself of your goals and your financial situation, such as the rates you’re paying.
  • You are not alone. Debt is normal. Be confident and assertive.
  • Contact another banking institution and enquire about moving your credit card debt elsewhere for a better rate. You can use this information as leverage when negotiation your credit card rate with your existing financial provider.
  • Decide whether you will be negotiating credit card rates over the phone or in person.
  • Go ahead and start negotiating credit card rates!

If you’re interested in negotiating credit card rates it probably means that you carry a balance on your credit card and are paying interest on your credit card purchases. If you’re in this circumstance, it’s time to evaluate your financial strategy. Credit cards are one of the worst ways to gain access to credit because credit cards tend to carry high interest rates, such as 19% or even higher. If you need access to additional credit, consider other financial products (such as debt consolidation or a secured line of credit) before maxing out your credit card.

Negotiating credit card rates is certainly a good idea, because a lower interest rate means less money wasted on interest. But when it comes to finances it’s wise to take a step back and reevaluate your financial strategy. What may have worked for you in the past may not work for you today, so be sure to assess your financial strategy at least once a year.

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What’s your biggest financial concern
Small business debt consolidation
Business car insurance
Medical insurance coverage

Getting a business credit card

andrea

Getting a business credit card is the first of many financial questions for people who are self employed.

The best was to ensure success when getting a business credit card is to do your homework–and legwork–as early as possible.

Common questions regarding getting a business credit card:

1. When should I start getting a business credit card?

When setting up your business, you might as well apply for a business credit card right away. Remember that getting a business credit card doesn’t mean purchasing items that you can’t afford. The savvy self employed use their business credit cards as a way to ensure that business expenses are properly tracked and accounted for.

2. How do I go about getting a business credit card?

Before rushing into applying for a credit card, compare interest rates. Look for the business credit card with the lowest interest rate in case you have to carry a balance at some time in the future.

If you’ve found a reasonable interest rate, start by contacting your current financial institution and see if they can match the rate. Explain your financial and business circumstances, and ask for the credit card that they feel will best suit your needs.

Getting approved for a business credit card is contingent on a few factors, such as credit rating, other debts, and income.

3. Will getting a business credit card solve my problems?

When considering getting a business credit, start by considering your overall business banking strategy. What purpose does getting a business credit card serve? Business credit cards are best used as a way to charge business expenses, and, ideally, your business credit card should be paid off every month because of credit cards’ high interest rates. If you’re considering getting a business credit card to help you pay off debts, you may be better off investigating small business debt consolidation instead.

Getting a business credit card is a wise idea for all self employed people. What do you think? Do you have a business credit card? What is your interest rate? How do you use your business credit card?

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Small business debt consolidation
Business car insurance
Medical insurance coverage

Small business debt consolidation

andrea

Small business debt consolidation may be an option for your business if your company’s finances are facing the squeeze. Life can throw an unexpected curve-ball your way at any time, be it due to the economy, your client base, medical emergencies or debilitating injuries. Finding out more about small business debt consolidation is a proactive strategy for your business and your livelihood.

Small business debt consolidation is a simple debt-management strategy. In its basic form, small business debt consolidation is when a lender offers a large loan which your business uses to pay of its debts to multiple creditors.

Is small business debt consolidation a viable solution or is small business debt consolidation a stop-gap measure? The answer depends on your loan term debt management strategy. The answer also depends on the interest rate your small business debt consolidation loan lender offers.

If you are seeking small business debt consolidation it means that your company is in a pinch, possibly because minimum payments were being missed. If small business debt consolidation loans are to be undertaken, a change is in order. Spending may need to be restricted or a solid plan for the future is needed. However, sometimes the situation is not as dire.

If your company is on the verge of a product launch and sizable returns are to be expected, small business debt consolidation may be a good option for seeing your business through to a lucrative future. If this is the case, small business debt consolidation may be the option for your business. If so, shop around for the best interest rates, and consolidate your small business debt.

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What’s your biggest financial concern?

andrea

Whether it’s searching for a credit card, line of credit, business loan, medical insurance, business continuity insurance or some other financial product, financial concerns tend to show up on the radar of the self employed.

Disability insurance coverage

andrea

Disability insurance coverage is integral because disability can strike anyone at anytime. What is disability insurance coverage? It is coverage that replaces a portion of your regular income if you are unable to work due to disability.

Every insurance company defines “disability” in a different way, and the concept of “total disability” will differ greatly depending on your profession. For example, a broken foot might render a professional fitness trainer “totally disabled,” whereas the same injury will not render a computer programmer “totally disabled.”

In general, if you are eligible for disability coverage at the time that you became disabled, your coverage should continue even if you no longer hold the coverage after the fact. However, there are maximums to the amount of time that you can claim benefits. For example, many disability insurance coverage plans will expire at age 65. Another exception is that certain types of disabilities, for example certain mental or nervous disorders, will have a maximum benefit period of two years. In addition, many insurance policies will not cover pre-existing conditions.

In today’s culture of high household debt, disability insurance coverage is more important than ever. According to Great-West Life, on average one in three people will be disabled for over 90 days at least once before they reach age 65. Disability insurance coverage is something that everyone should carefully consider. Are you covered? How would you pay your bills if you were suddenly unable to work?

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Self employed medical insurance

andrea

Self employed medical insurance is an important consideration, because often people who are self employed are not covered by any specific medical insurance. It then becomes up to the self employed person to seek out medical insurance on their own.

If you are newly self employed, first investigate whether you can keep the insurance you recently had through your previous employer.  The US Department of Labor has a program that falls under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which gives former employees the right to temporary continuation of health coverage at group rates for a limited time after employment ends. Invoking your COBRA rights can cost more than you were paying while you were an employee, but the program is worth investigating as every circumstance is different.

If you are unable to invoke your COBRA rights and continue your coverage, you will want to explain other options.

If your spouse is employed and has a desirable insurance package, it is generally preferable to add yourself as a beneficiary to his or her plan. This is usually the most cost effective way for the self employed to obtain adequate medical coverage.

You may also consider joining business groups, such as the Chamber of Commerce, who sometimes offer group rates to their members.

If you cannot obtain coverage through a spouse or a membership-based organization, you may want to obtain coverage from a private company. If you are going this route, be sure to consider your options carefully. When it comes to self employed medical insurance, all insurance companies are not created equally!

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Business car insurance

andrea

Adequate business car insurance can make or break a company in the event of an accident. The reality is that businesses that use vehicles in their operations need commercial insurance. This is because commercial business car insurance covers some of the additional parameters that are relevant to business, such as provisions for other drivers.

If you are self employed or if you own a small business and you need business car insurance, try your current insurance agency first to see whether your coverage can be changed.

However, if you represent a large organization, you may wish to obtain business car insurance from an insurance agency that specializes in commercial insurance. When speaking with an insurance agent about business car insurance, be sure to explain your circumstances as clearly as possible.

As with any important business administration strategy, be sure to keep adequate records relating to your business vehicles. Track mileage, repairs and drivers. Assume that at some point you will need to make a claim–or assume that a claim will be made against your organization.

Consider business car insurance and the administrative tasks surrounding your vehicles as preventative measures that will protect your company in the event of an accident or incident.

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Medical insurance plans

andrea

Medical insurance plans can vary greatly in scope, cost and coverage. No matter how you are covered, for example through an employer or private insurance agency, you will want to become very familiar with your medical insurance plan.

Medical insurance plans operate by covering just enough so that you feel covered, but they do have a heavy list of exclusions and regulations. Often there are caps, minimums, maximums and limitations that most people do not learn about until they  make a claim under their medical insurance plans and discover that they are not covered.

Do yourself and your family a favour by reviewing your medical insurance plans carefully so that you have a firm understanding of what is–and is not–covered.

Medical insurance plans differ, but frequently low cost plans have the most exceptions and exclusions. When it comes to your health and your family’s safety net, you may not want to risk going with the cheapest medical insurance plans. That being said, just because an agency wants to charge you an arm and a leg for a plan, it doesn’t necessarily mean that their coverage is better.

The best way to deal with the confusion surrounding coverage and medical insurance plans is to sit down and compare different plans. Run through some examples that are relevant to your family, and understand how your medical insurance plans will treat each circumstance:

  • What if your spouse is diagnosed with a debilitating disease?
  • What if your mobility should be impacted?
  • What if your child should require numerous operations?
  • What about dental care?
  • What about long-term disability?

It’s easy to assume that your current coverage is adequate; however, that may not be the case. Review your family’s medical insurance plans and adjust as necessary to meet your needs. Are you satisfied with your medical coverage?

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Discount medical insurance

andrea

Discount medical insurance may sound appealing and scary at the same time, but it doesn’t have to be. The best way to navigate the complex waters of discount medical insurance is to educate yourself and take responsibility for your coverage.

The basic principle of obtaining quality discount medical insurance is to understand the nature of medical insurance. Insurance agencies want you to pay out over the long term, and they want to spend the least amount of money on you. The way they try to limit what they will pay out is by excluding conditions and setting limits on coverage.

Now that you understand the principles behind discount medical insurance, you will understand what you need to look for. In order to protect your family, you need to analyze the details of every discount medical insurance plan that you encounter. Find out what the limits are. Do not assume anything.

Start by imagining a realistic scenario that may affect your family. What if you should be debilitated in a car accident and unable to work? Run this scenario by each discount medical insurance agency. How does each company fare? Do this again and again with a number of examples relevant to your life circumstance.

You will quickly discover that all discount medical insurance companies do not have the same policies. And you may also be surprised to learn that price isn’t always correlated to better coverage. Many organizations will charge more and offer inadequate coverage. They can do this because many people will assume that if you pay more you get more. This can be the case, but there are many exceptions to this rule.

Discount medical insurance is worth investigating, but you must familiarize yourself with the basics so you can make a decision that you can feel confident in. You do not want to find yourself with inadequate coverage. Please spend some time investigating coverage now. You won’t regret it.

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Car insurance for business – tips

andrea

Car insurance for business is a serious topic. Understandably, most large businesses recognize that car insurance for business must be treated differently than personal car insurance. However, many small business owners don’t realize that once they’re using a vehicle for business purposes the parameters change. Depending on circumstance, commercial car insurance may be required.

Car insurance for business sometimes requires commercial car insurance because it covers additional parameters for other drivers, passengers and so on. Depending on the type of business, the insurance process can be complex. For example, a taxi will cost more to ensure because the coverage can include passenger injury and it can limit the driver’s liability in the case of an accident.

Car insurance for business costs more than regular car insurance, because it covers more parameters for the business’ protection. Policies can often be tailored to the needs of each business, and insurance agencies are accustomed to navigating complex business car insurance applications.

Be sure to review the fine print, because you must ensure that you adhere to regulations. There may be age restrictions on other drivers, for example, the coverage may only be valid for drivers over 25 and under 75. Or there may be regulations regarding explicitly naming all drivers who will be driving the vehicles.

If you have any questions about your current car insurance, be sure to call your agent and clear up any questions you may have about car insurance for business.

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Information on this site is meant as a guide only. Check your local jurisdictin for details.

Self employed disability insurance

andrea

Self employed disability insurance is something many self employed entrepreneurs don’t stop to think about. As a successful self employed person, it’s easy to feel invincible.

Medical insurance coverage

andrea

Medical insurance coverage is something we must all consider carefully. Even minor medical needs, such as prescription drugs or minor health problems, can add up if you do not have adequate medical insurance coverage. In the case of major illness or accident, which can happen to anyone at any time, proper medical insurance coverage is invaluable.

What is medical insurance coverage?

In its simplest form, medical insurance coverage is a trade-off. You (or your employer) will pay an insurance agency a small amount over a long period of time. In turn, the insurance agency hopes that by the time your coverage expires you will have paid in more than you will have used.

The reality is that many lucky individuals will make the insurance companies money, because those that pay into it have not needed to use the benefits that they have paid for. If this is the case, consider yourself lucky, because many people of all ages will find themselves in a medical emergency, be it illness, accident, chronic problems, disability or another medical issue that requires medical insurance coverage.

How to get medical insurance coverage

Depending on your location and the type of work that you do, medical insurance coverage is generally acquired through government, through an employer or is purchased directly from a private insurance company.

What is excluded from medical insurance coverage?

The types of illnesses or procedures that are covered or excluded can vary greatly. Here are a few examples of the types of coverage that are often excluded from coverage:

  • Behavioural problems, for example ADHD;
  • Hospital fees;
  • Home care or private nursing;
  • Cosmetic surgery;
  • Prescription drugs;
  • Dental care;
  • Vision care;
  • Hearing care;
  • Alternative medicine;
  • Pre-existing conditions;

There are often limits and caps to medical insurance coverage, as well.

When purchasing medical insurance to keep you and your family safe, do not assume that you are covered for all circumstances. Be sure to familiarize yourself with the policy and have an understanding of what is included, what is excluded and what the maximums are.

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Self Employed Rates launches

andrea

Welcome to SelfEmployedRates – your source for rates on all sorts of financial issues for the self employed. No matter what kind of micro business or small business you run, we hope you’ll turn to use for information on researching, understanding and even negotiating rates and fees, such as:

Stay tuned!