Notarealsignguy
Arial - it's almost helvetica
On small stuff sometimes but bigger stuff I usually say no. Online sales we take CC but that's different. Most of our main customers have terms, it's the easiest way for me
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"Here, try this one."
- Thread starter Robert Armerding
- Start date
Robert Armerding
Listen Sharp
When it comes to credit card use by the owner of a sign shop, the recommended standard that I go by is to pay off every credit card, every month. Never let any balance carry over to the next month. The only exception is in the case of an extreme emergency.
Let’s continue with the theme of this thread. If you own/run a sign shop and if you have credit cards that are maxed out or almost maxed out, then this thread is for you. Please keep reading.
I am going to list several steps in order of importance.
First, clearly define the problem. Make a complete spreadsheet list of all your cards. Show how much is the total due for each card. What is the percentage rate? What is the minimum monthly payment? How much is still open? Are any of your cards past due? If so, how much?
Sort them by percentage rate, highest to lowest. Create a column to rank them.
Sort again by how much credit is still available. Again, create a column to rank them. If you wish, create as many columns as you would like to rank them.
Now you will start to think about finding a way to get out of debt. At the same time, start to think about which credit cards you rank as your best to continue using.
I want to let you know that I am here to help you. I will make time in my schedule to work with one Signs101 member to begin to resolve their credit card problems. You see, I was once in the same position. I resolved my credit debt problem, learned a lot, and want to help you.
Let’s continue with these first steps. (Down the road, we want to find the root cause.) For now, we have a major fire that needs to be put out. Determine for yourself just how bad is the problem. Do you see a way out in say three or four months? Or, is it worse than that?
If it is worse, here are your next steps. Do a Google search for “credit card debt forgiveness.” You will see three million results. Several “Ad” results at the top. Hundreds of other listings. Begin to look at several to see if any information catches your interest. Take your time. Please do not jump too fast. Begin to make a list of potential companies. But also look for those who provide guidance. And, see if any of the companies offering to work with you have reviews. Again, go onto Google and type in the companies name followed by the word reviews. Even then, proceed with great caution.
Lookup on Amazon. See if any books might be helpful.
Lookup on YouTube. See if any videos offer information that might be helpful.
Contact your local lawyer referral service. Ask them to connect you with a debt relief attorney. In many counties, the fee is under $50. There are some things you can do all on your own.
Before you take any action, give yourself two or three days to think about it. The road is full of land mines.
To my reader, if you have any questions, please feel free to raise them right here or privately. Remember, I am here to help.
Let’s continue with the theme of this thread. If you own/run a sign shop and if you have credit cards that are maxed out or almost maxed out, then this thread is for you. Please keep reading.
I am going to list several steps in order of importance.
First, clearly define the problem. Make a complete spreadsheet list of all your cards. Show how much is the total due for each card. What is the percentage rate? What is the minimum monthly payment? How much is still open? Are any of your cards past due? If so, how much?
Sort them by percentage rate, highest to lowest. Create a column to rank them.
Sort again by how much credit is still available. Again, create a column to rank them. If you wish, create as many columns as you would like to rank them.
Now you will start to think about finding a way to get out of debt. At the same time, start to think about which credit cards you rank as your best to continue using.
I want to let you know that I am here to help you. I will make time in my schedule to work with one Signs101 member to begin to resolve their credit card problems. You see, I was once in the same position. I resolved my credit debt problem, learned a lot, and want to help you.
Let’s continue with these first steps. (Down the road, we want to find the root cause.) For now, we have a major fire that needs to be put out. Determine for yourself just how bad is the problem. Do you see a way out in say three or four months? Or, is it worse than that?
If it is worse, here are your next steps. Do a Google search for “credit card debt forgiveness.” You will see three million results. Several “Ad” results at the top. Hundreds of other listings. Begin to look at several to see if any information catches your interest. Take your time. Please do not jump too fast. Begin to make a list of potential companies. But also look for those who provide guidance. And, see if any of the companies offering to work with you have reviews. Again, go onto Google and type in the companies name followed by the word reviews. Even then, proceed with great caution.
Lookup on Amazon. See if any books might be helpful.
Lookup on YouTube. See if any videos offer information that might be helpful.
Contact your local lawyer referral service. Ask them to connect you with a debt relief attorney. In many counties, the fee is under $50. There are some things you can do all on your own.
Before you take any action, give yourself two or three days to think about it. The road is full of land mines.
To my reader, if you have any questions, please feel free to raise them right here or privately. Remember, I am here to help.
Notarealsignguy
Arial - it's almost helvetica
Some may not agree here but just don't use credit cards even if you pay it off every month. Is that measly 1% you get back really doing something for you? Even if you spend $1mil a year you would only get $10k back . Really though, if you had $1mil a year in expenses, $10k should be chump change.
Vendors will give you terms that are much more favorable than any credit card. If things get rough you can string them out and not hurt yourself in the process.
Vendors will give you terms that are much more favorable than any credit card. If things get rough you can string them out and not hurt yourself in the process.
White Haus
Not a Newbie
I get what you're saying, but we have a TD Travel Visa (Ha.....remember travel?) and we easily accumulated over a million points just by paying our suppliers with it. Still have Net 30 terms, but just pay by Visa before due date then transfer the funds onto the card same day. As long as you pay attention (we just paid $60 in interest charges for the first time ever - punishment for NOT paying attention) then it's a nice little bonus.
I would never EVER use it if we didn't have the funds to pay it off immediately. We don't use it for credit, we just use it for points.
Texas_Signmaker
Very Active Signmaker
I have a business card that gives 2% back... I run everything I can with that thing. I think I made $5k last year off it
CanuckSigns
Active Member
We're the same way, our travel card gets enough use to pay for an all inclusive down south every year for the family, we pay the bill off in full every month so it costs us nothing. Now getting the time to take a week off is another story...
White Haus
Not a Newbie
And being allowed to travel down south is another story..........lol. First winter not going away in 6+ years. Oh well, there's always next winter!
Notarealsignguy
Arial - it's almost helvetica
I use a credit card online, not a visa debit card either. I more meant to not make a cc your staple means of payment for everything under the sun or as a line of credit.
Actually, how many people here keep an open line of credit? That's what you should be using in a pinch, not running up credit card balances.
Whether or not to use credit of any kind really gets down to self discipline. The numbers say that most don't have self-discipline. Issuing banks know that the vast majority of people will lapse a payment or carry a balance.
Points are paid by processing fees charged to our vendors, who typically pass those costs on in the price of their product. So really, when you take a vacation using points, you've just skimmed profits from your company that may have been used for something else. Nothing wrong with that if you own the company, but I wouldn't want my employees spending points that I could use to pay for things the business needs.
I wonder how many suppliers would provide a cash discount if asked? I do.
Points are paid by processing fees charged to our vendors, who typically pass those costs on in the price of their product. So really, when you take a vacation using points, you've just skimmed profits from your company that may have been used for something else. Nothing wrong with that if you own the company, but I wouldn't want my employees spending points that I could use to pay for things the business needs.
I wonder how many suppliers would provide a cash discount if asked? I do.
Notarealsignguy
Arial - it's almost helvetica
I'm seeing more and more companies charging a surcharge for using a credit card. It wouldn't surprise me if this becomes the norm for many places.
Gino
Premium Subscriber
I'm not sure if this is what you are referring to, but at our shop, when we take a customer's credit card, we no longer pay the fees. That's how it was for years. A few years ago, we went with this company who now charges the card holder with all fees. Customers don't like it, but we tell them, use a check or give us cash, instead. So, they say, just do it. It adds up after awhile. And we used to pay that.
The OP was about use of credit cards (I think) so hopefully still on topic.
Think of it this way. If you have $1 million in sales and 10% net profit (which is almost double the industry average of 5.2%) that's $100,000 net profit. As a seller, If you absorb 3% in credit card fees on half of your sales, that's 1.5% or $15,000 of your top line. In other words 15% of your net profit.
My point being we may be tempted to look at credit card fees as insignificant, but in reality they potentially have a major impact on profit.
( profit assumption refer to: https://askwonder.com/research/typical-profit-margins-commercial-print-industry-bgwopx606 )
Think of it this way. If you have $1 million in sales and 10% net profit (which is almost double the industry average of 5.2%) that's $100,000 net profit. As a seller, If you absorb 3% in credit card fees on half of your sales, that's 1.5% or $15,000 of your top line. In other words 15% of your net profit.
My point being we may be tempted to look at credit card fees as insignificant, but in reality they potentially have a major impact on profit.
( profit assumption refer to: https://askwonder.com/research/typical-profit-margins-commercial-print-industry-bgwopx606 )