Credit Cards Replace Small Business Loans

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August 27, 2008
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NEWS  THIS WEEK'S TOP STORY Credit Cards Replace Small Business Loans As commercial loans become harder to find, small business owners give in to aggressive credit card marketers and get slammed with 30% interest rates SLIDE SHOW > >

Inside: This Week in SmallBiz While data on small business borrowing is scattered, indications show that entrepreneurs are increasingly relying on credit cards to finance their businesses, especially early-stage companies. But relying on cards, rather than on fixed-rate loans or credit lines, can saddle small companies with unexpected and expensive debt. Check out our story on this disturbing trend, then weigh in with your thoughts in the comments section at the bottom of the page. Also on tap: For a sense of what it's like to do business in Afghanistan, check out this month's Entrepreneur's Journal. Then tune in to a podcast interview with "The One Minute Manager" co-author Ken Blanchard on the attributes of successful entrepreneurs. Finally, hear about how companies are using Facebook and "preward" gift cards to market to young people. --Nick Leiber SEND FEEDBACK  |  E-MAIL A FRIEND  |  GET RSS  |  NEWSLETTERS

MORE SMALLBIZ NEWS BWSMALLBIZ -- FRONTLINE McCain and Obama on Small Business Issues Where McCain and Obama stand on small business issues, and where they differ SALES & MARKETING Marketing to Millennials Teens are historically difficult to reach, but small businesses are finding some success online through Facebook and "preward" gift cards TECHNOLOGY Making Remote Check Deposit Real The technology to deposit checks remotely is here. Small banks gain convenience—and a way to compete with their larger counterparts ENTREPRENEUR'S JOURNAL Doing Business in Afghanistan Rangina Hamidi's Kandahar Treasure helps Afghan women sell embroidered goods in a war-torn country where security is a constant concern SMART ANSWERS Selling Online to Industrial Buyers Overseas Linda Rigano, director of strategic alliances at ThomasNet, shares online marketing strategies for small businesses selling in international markets SMALL BUSINESS FINANCING How to Negotiate a Term Sheet, Part II In this two-part series, columnist Tom Taulli defines key terms and sketches out common pitfalls for entrepreneurs negotiating a term sheet with venture capitalists   SMALLBIZ SLIDE SHOWS SMALL BIZ Evaluating Small Business Credit Card Offers Credit-card issuers have turned their attention to the small business market as the consumer card market has become saturated SMALL BIZ Slide Show: Fresh Entrepreneurs Welcome to our ongoing series profiling startups from across the country. We'll be asking for your suggestions and adding profiles on a regular basis   SMALLBIZ PODCASTS Selling a Business in a Down Market Small business owners who want to sell have an advantage. Even in a down market, there are always more buyers than sellers. But this year getting the best price will require creativity, says Peter Johnston, author of "Negotiating With Giants"   SMALLBIZ SPECIAL REPORTS Home- Based Business Branding Franchising Raising Capital The ABCs of Business Plans Best U.S. Entrepreneurs 25 and Under SMALLBIZ  BUSINESS DIRECTORY Need Help? Find experts in your area in: Accounting Advertising and Marketing E-Mail Marketing Legal Services Public Relations Search Engine Marketing Web Design Web Marketing Web Hosting  BW MALL   SPONSORED LINKS Effectively Manage Your Employee Time  Software & hardware allow you to integrate time tracking & payroll. View a 5-min demonstration here. Get Your No Hassle Business Loan Quote  With a ForwardLine business loan you could be approved in days and have your money in about a week. Solar Stock Pick - EVSO  Solar Energy Growth Investment. Stocks, Trading, Investing. Alternative Energy. Financial Management Resource Center  Register For SAP’s FM Resource Center. Optimize Working Capital Accelerate Cash Flow Improve Returns. Emerging Growth Investing Never Tasted so Good  Spicy Pickle - proven franchising model poised for high growth future in $70 billion industry. Buy a link now! This newsletter is a FREE service provided by BusinessWeek.com. To sign up for other newsletters, cancel delivery, change delivery options or change your e-mail address, please go to our Newsletter Preferences page. If you need other assistance, please contact Customer Service or contact: Wanda Cooper BusinessWeek Customer Rights Communications Data Services 1995 G Avenue Red Oak, IA 51566 Phone: 1-800-635-1200 View our corporate privacy policy here. To learn more about how BusinessWeek.com applies this policy, you can contact our Marketing Department. Copyright 2008, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use | Privacy Notice

BLOG The New Entrepreneur >> According to today's WSJ, Italy's tourist board has spent some $66 million and five years building a Web portal to attract tourists and boost the country's global image. Apparently one of the reasons floating about as to why the site has been such a disaster is the combination of too many people involved (and too many governments) in producing it as well as the staggering amount of money thrown at the project. There must be a lesson in here somewhe... -- Stacey Perman Visit Our Other Blogs Auto Beat Bangalore Tigers Blogspotting Brand New Day Byte of the Apple Economics Unbound European Insight Fine On Media Games, Inc. GreenBiz Hot Property Investing Insights Management IQ New Technology in Asia NEXT: Innovation Tools & Trends NussbaumOnDesign Tech Beat Working Parents POST YOUR OWN COMMENTS ADVERTISEMENT Get Options Trading Ideas for Major Currencies Get currency options trading ideas with Trading Central's free FX Options Trade Alert. See opportunities as they arise, based on technical analysis. SMART ANSWERS KAREN E. KLEIN >> Starting a Business Development Center in Nigeria A goal of helping Nigerian entrepreneurs takes passion and motivation. To make it happen, you'll need a thorough business plan—and plenty of patience SEND YOUR QUESTIONS TO KAREN >   VIEWPOINT CARMINE GALLO >> Olympic Training for Your Presentations What an Olympic athlete like Michael Phelps can teach you about the preparation and mindset needed to win over your audience MORE CARMINE GALLO COLUMNS >>   Advertisement   Reader Poll: Special Issue Trouble at the office? In surveys, blogs, polls, and social media, BusinessWeek collaborated with readers to identify problems at work. Together we found answers.   Today's Tip Sales & Marketing You can give presentations and demos until you're blue in the face, but often it's not until an industry peer tells his or her story that it starts to click. It is important to identify those premier customers and work with them to mine their vision, package it, and make it available to the mainstream buyer... --Jim Hemmer, CEO and President, Antenna Software READ MORE >   IN YOUR FACE: BRACING FOR U.S. INFLATION Reader Rose Ley Writes: "At the heart of this monetary disorder is borrowed, leveraged money upon which interest must be paid. Who loses when it gets lost in a binge of gambling?" Tell Us: Are You Banking on Double-Digit Inflation? >   BusinessWeek has teamed with J.D. Power and Associates to let you compare customer satisfaction and product quality ratings. Automobiles Cable/Satellite Providers Consumer Electronics Copiers Digital Cameras TVs Insurance Auto Insurance Collision Repair (Auto Insurance) Home Insurance Financial Services Full-Service Investing Mortage Service Online Trading Telephone/Wireless All-Distance Phone Providers Wireless Service Internet Service Providers   Advertisement   VIDEO VIEWS >> High-Tech Banking Banks around the country are using systems that allow business customers to make deposits from their office computers. We explore this and other tech advances in the banking industry     SUBSCRIBE TO BUSINESSWEEK SmallBiz Print Table of Contents Get SmallBiz Free With Your Subscription To BusinessWeek Subscribe Now Customer Service SMALLBIZ FREE ONLINE COURSES Instructor-led classes on the latest topics for registered BusinessWeek users. Sign up now • The Wireless Mobile Office • Designing and Equipping Your Home Office • Setting Up a Wireless Home Network • Start-Up Basics for the First-Time Entrepreneur • Writing a High-Impact Business Plan • Raising Capital for Your Small Business