On today’s episode we are going to answer some listener questions again. Today’s questions have to do with credit. You guys asked us, “How do I build business credit?” and “Why should I use credit vs. cash?”

We answer these questions today and give you some insight into how interest rates and loans work for businesses.

The points for “How do I build business credit?”

• Why it’s important to have good personal credit.
• Issues that can affect a bank loan.
• Why time changes credit negotiations.
• Why you need PayPal to do business overseas.

The points for “Why should I use credit vs. cash?”

• The benefits of credit.
• Credit as a tool.
• Cash as a tool.
• How to keep money in your company, while keeping up with inventory.
• How to build credit with vendors.
• Why you should only use credit for inventory.
• What are “net terms?”

Some of the other topics we discussed today:

• How to negotiate free shipping.
• Why you should always use cash if possible.
• What is the best percentage of interest?
• When to say no to the interest.

This turned out to be a pretty deep subject today. We’re glad we can offer some help or insight for you guys.

Resources:

Cuttingboard.com

Color It

If you have any questions or anything you’d like us to discuss on the podcast please go to ecomcrew.com and fill out the contact form. Also we would really appreciate if you would leave us a review on iTunes. Thanks for listening!