New Business Financing

Submitted by peacockrancher on Sun, 09/07/2008 - 16:43

I posted another post here on the money and budgeting, but I have another question.

Would I be better off establishing a small credit line vs a credit card? What are the benefits to having either one? Right now I just have a small savings account under this business and have put money in and taken money out as needed for business purposes, however there are a few things that I would like to get into. I would like to purchase an incubator that costs right around $500, it is a lot easier to deal with a credit card number when ordering online and through a hard copy catalog, that is one of the reasons that I have been thinking about a card vs a small line of credit, unless it comes with a card.

This is all new to me, I used the savings account and would just shop at local stores, so it was just a simple stop at the bank and take out the cash. Run to the store and pick up what I mean.

I am just looking for some guidance here and hope that there are some people here that can provide that. thank you in advance.

I am going to the insurance forums to inquire about insurances to cover what I have. I will be back a little later to see if anyone has responded.

A line of credit may or may not come with a card you could request a card to go along with it, most of them come with blank checks that you write out for whatever you want, you may have the option of a card, you would have to consult with your banking institution and find out.

You could also take some money from your savings account and put it on a prepaid card, that would also give you the function of a card that you are looking for if you still need to order from a catalog or a card.

These are just some options that I think you could explore, I am sure that others here will come along and add some more information on the credit card end of it and what the benefits are to that. Hope this helps.

Sun, 09/07/2008 - 17:39 Permalink

I have seen the pre loaded card that you are talking about, in fact just the other day I was in the customer service line at Walmart and seen they had them there, I will have to pick up a brochure. I pondered the gift card, but the pre loaded would act more as a credit card right? I am sorry to be so naive on some of this stuff but I am used to doing things the old fashioned way, I had real trouble with direct deposit, that is the only reason that I have a bank account period.

I am opening up to a few more ways of doing things, I do like the sounds of the preloaded card, I will pick up a brochure and look more into it. I appreciate your input on this, If I get the Walmart card I can probably load and maintain it right at the stores customer service desk, that would be really convenient because my bank is right there near Walmart.

I feel like I am getting a bunch of good information here, I honestly do thank you for your time.

Sun, 09/07/2008 - 20:35 Permalink

I think that you will find out they are safe and that they are really easy to use. I think that you will find yourself comfortably shopping for your items in no time.

I don't know how familiar you are with the online services but paypal also has an account that you can use. You have three different levels, personal, premier or business, you can get a card that you can use with the premier or business accounts. They do charge a little bit but it is not much. You should look into it and see what you think.

Sun, 09/07/2008 - 20:56 Permalink

Hi peacockrancher, welcome to the forum, I hope that you are finding what you need here, seems as if goodnatured has answered all your questions about the cards.

I have used prepaid cards and they are very similar to the gift card system except the gift cards are for one particular place and the prepaids can be used anywhere just like any regular credit cards.

Starting a small business can be tricky, you are smart to want a strong foundation to build on. Whatever you do try to establish some type of credit, you will not do this by using prepaid cards, you will actually have to apply for a real card through a company that deals in the cards. I see many advertised on television. You will need to do some research here and on the web, there are alot of people here to help, so fire away with your questions.

Mon, 09/08/2008 - 01:55 Permalink

Hi Peacockrancher
Lines of credit has a lower interest rate that distinguish it from credit cards. Moreover it has low risk and have higher available credit limits. But credit cards are much more convenient especially when you are making on line transactions. In case of credit cards, you need to just enter your card number and make transactions, however, in case of credit lines you need to depend on the bank for making payments.

Mon, 09/08/2008 - 05:14 Permalink

Goodnatured,

I do have a pay pal account however I do not have the card for it, I never got one.

Anthony,
Thank you for the information on lines of credit and the credit cards, I guess they are apples and oranges? So they are two different animals altogether.

I am looking at the prepaids, I can use them like credit cards for now. However, I do realize that they will not build a credit history and I will need to apply for a credit card sooner or later here to get that started.

I appreciate all the input, I have enough to work with now and going to go with the prepaid until I figure out what credit card to apply for. Anthony do you have any suggestions for a card that will meet my needs.?

Tue, 09/09/2008 - 00:04 Permalink

Hey pcr, If you are just starting out I wonder if you wouldn't be better off woth the line of credit that carries the lower interest rate. Beind a new business it usually takes at least a couple years before you are in the positive and getting return money on your investments. Even the prepaid may be better. I am not sire if there is a charge or how in fact they work.
A card I have found to have a pretty good interest rate as opposed to some is the Discover. Usually you can get a starter interest rate of 0% for one year. Maybe Anthony will stop back and put in some more advice.
GN, sounds like she may know her stuff to.

Tue, 09/09/2008 - 01:22 Permalink

I have used the prepaid cards, they do have a small fee along with them but it is not much, way cheaper than what you would pay if you add up the intrest and fees on a credit card.

Guess it is a personal choice, pcr will have to figure out what route he wants to go. I guess it will depend on what type of rate he can get, doesn't sound like he has much credit built up so that may be an issue on the credit card rate. They may be a little leary on issuing a card. I guess all he can do is apply and find out.

I am sure that Anthony will be along to further advise on what pcr has questioned about the card. I sure can not recommend any.

Tue, 09/09/2008 - 01:31 Permalink

GN that is a good point you make when comparing the interest rate on a regular credit card to the small fee that may be affliated with the prepaid. I had not thought of that. It does sound like the OP is just starting out. I guess I was a little surprised at the peacock business but it may be in demand in the posters area (not sure if he/she). I know out here in my area it is veal (which totally stinks for miles) and doves.
I have never dealt with anything business wise but I am sure there is lots of good information to be found around the forum.

Tue, 09/09/2008 - 01:37 Permalink

Fireyone
My business is very small at this point, I only have two sets of breeder birds. It all started because I love the color of these beautiful birds, however, my birds are going on three and three year olds and between the two sets I had 17 eggs this year. None were fertile because they have their first laying years as somewhat of a practice run, now next year they will breed and I will have fertile eggs. Fertile eggs can go for $20 for two of them on ebay and more depending on the color of your birds. I have paid $25 for a bird that was only two months old.

My thing is that I only want a few birds, so I figured if they are going to breed I may as well make some money off it right? I can not imagine what I would have done with all those peeps if those eggs would have been fertile.

so it all started as a hobby and now I am considering a small business venture, there are actually resturants that sell the meat as a specialty, not for me of course. Some people eat the eggs, again I will pass on it. I am just seeking advice to see where this all leads as next year at this time I do believe that I will have my hands full with baby birds.

Tue, 09/09/2008 - 23:19 Permalink

Okay I am done puking now!!!!! It does sound like it could be a good money making idea. I know nothing about birds so this is pretty informative for me. I had cockatiels once but gave them away..they squacked too much. I can not believe someone would pay $20.00 for two fertile eggs. Here I thought $2.09 a dozen was expensive.

Tue, 09/09/2008 - 23:27 Permalink

Fireyone
These eggs are then hatched out and the people that buy them have new bloodlines for their brood, just like anything else you want to keep a healthy blood line and introduce new or better traits. I have never shipped eggs before, I do know that you can have them out of the nest for like 7 days. These are some very hardy characters in and out of the shale. My birds stay out in winter hail storms and all inclimate weather.

There are many ways to make some money off these birds, I will work on crafting this winter with the feathers that I have collected. Hopefully it is something that I can sell on ebay and make enough for some feed. I would like them to pay for themselves.

Wed, 09/10/2008 - 01:55 Permalink

Okay I know you are not familiar with my troubles before. I answered this post already but I do not see my response listed. I hate when that happens. Anyway you can make them pay for themselves by selling these eggs and making crafts. I am sure there are other ways to go about getting a return on your investment. Can I say maybe if you google your birds something will come up that will catch your eye more than their beautiful feathers?

Fri, 09/12/2008 - 14:33 Permalink

I have seen some beautiful thinks made of peacock feathers, have you thought about selling them to local craft shops, you should check this out.

Sat, 09/13/2008 - 01:38 Permalink

There are several ways to make money if you get big enough, at my size right now with only two breeding pair it would take me forever to get enough feathers to make anything descent in quantity. I am a little leary about shipping eggs, but I guess people do it all the time, they also ship live peeps.

I don't know where this will all lead, I basically came here because I thought I needed a credit card. I found some good ideas about prepaid and went and purchased on of those. It gets the job done, so I will continue with the prepaid cards until I figure out what I want to do.

Sat, 09/13/2008 - 02:48 Permalink

I believe you may have some good ideas here with your birds. I just think you need to do a little research in the field to see where the opportunities lie. Is there any farms around your area that specialize in these birds? Have you surfed the net as a buyer, instead of o seller to see 1. How much the eggs sell for 2. How much the peeps sell for 3. How common these criitters are and how well liked?
Act as if you yourself would be interested in buying the birds or their by products. Just like you would do a car. I think you will find alot more answers this way.

Sat, 09/13/2008 - 13:03 Permalink

Great suggestion fireyone, I have purchased these birds from a local breeder and have been in contact with a gentlemen in Texas who has all types and colors of these birds. I have emailed him some pictures and he says that I have the potential to throw white or what they refer to as pye birds, they are beautiful, like white lace with the eyes of gold.

Some people actually use these birds as watch dogs, mine however are quiet and don't make a lot of noise unless they are disturbed, they are pretty content. Usually if my husband fires up the chain saw or something that they are not used to they will get a little upset. Once they are used to the sound though they settle down.

Sun, 09/14/2008 - 02:29 Permalink

I know people who have chinese geese as watch dogs and they will come after you, I am actually more afraid of them then I would be there dogs. They hiss and come at you, they are nasty buggers. mean as hell.

Sun, 09/14/2008 - 16:01 Permalink

Reminds me of my sisters rooster. I went to visit her one day and it came up to my car. I swear all I said was "cock a doodle do" to it and it went bezerk. I couldn't even get out of my car without it wanting to eat me alive. She found this rather funny and stood on her porch laughing. So much for sisterly support. Let me tell you I am deathly afraid of these birds to this day. I won't go near them at my other sisters or brothers house..Sometimes they even get their rocks off chasing me with one. I ended up with a bad laceration from my bro doing this.

Mon, 09/15/2008 - 00:37 Permalink

LOL, I had a pretty nasty rooster, I used to have to carry an aluminum chair with me to the garage or get flogged, hated that thing, the coon dogs got it when it flew over the fence, no hard feelings here.

Wed, 09/17/2008 - 01:59 Permalink

I wouldn't have felt bad either. Nothing better to me than a dead rooster...like the ones in my kitchen.

Thu, 09/18/2008 - 01:35 Permalink

You are too funny there fireyone, did you have trauma with a bird that you have such harsh feelings about them. Roosters can be very territorial, they can get down right mean and look at everyone as a potential threat and there they go a flogging. I think it is just in their nature.

My peacocks are pretty mello, they will present themselves with all their feathers up but I have never had one actually come after me. I know that they are known to kill some pretty big snakes. Especially in India, they kill the cobra snakes.

Tue, 09/23/2008 - 14:03 Permalink

I think thet is why the peacocks do not appeal to me. A little too much like roosters for my blood. It really could be a good investment. You must look into all the various ways this could earn you a few extra dollars. Have you done any research as of yet?

Tue, 09/23/2008 - 18:29 Permalink

Hey - I'm new here, and just jumping in, but I thought I might be able to give you a great big tidbit of advice. Check out www.sba.gov. They will help you to find out about financing for small businesses. The best place to start is with a business plan.

I attended a couple of courses at my local community college that was offered (at no charge) to small business owners to help them out with just this subject.

Best of luck to you (and your birdies!!)

Tue, 10/14/2008 - 05:37 Permalink

Hey peacock..where ya been? A business plans sounds like a great move. My sister is interested in getting a couple birds. She lives on a farm and started collecting different animals and yes, birds.

Sun, 10/19/2008 - 02:16 Permalink