There’s a lot of talk in the news and around the world regarding the state of the global economy.  Many people trace back the problems to the US mortgage crisis, but its difficult to ignore the debt problems and commodity issues around the world.  At the end of the day, money is tight for 99.9% of the world and there’s just no easy solution that can be mutually agreed upon.  Analysts, strategists, and financial planners are doing their best to predict where this winding road will go in enough time to steer the ship in a more favorable direction, but the situation we are currently in is unlike any other in history and we are all learning as we go.

From our perspective, we see a lot of small businesses struggling to get by.  Most suppliers and vendors have eliminated credit terms and raised prices to maintain certain standards in their own businesses and this has put a squeeze on many business owners.  In addition, consumer spending continues to walk a fine line.  Many business owners are also hesitant to take on any debt during this time for fear that it could create a cash flow issue somewhere down the road, and it is this concern that I’m most inclined to address.  Fear is a powerful motivator, but it can also paralyze us from acting.

While it may seem like wisdom to be cautious of entering into a financing agreement, the way the economy grows is through small business expansion and lending.  You may be able to maintain the status quo for a while, but eventually improvements will need to be made, renovations perhaps, and its important to continue to update product lines and services to better serve your clients.  All of these things cost money and unless you have a surplus laying around, you will probably need financing at some point in the next few years.

As is understandable, lending markets continue to tighten up and for many companies, existing, performing accounts are the only ones getting money anymore.  Securing a reliable business funding partnership is almost more important than the financing itself.  When the economy goes bad, history, and comfort go a long way towards rebuilding, which is why it is so important to establish a funding partnership now, before the economy gets worse, or before lending availability dries up.  So even if the need for funding is not immediately present, it may be a good idea to secure a partnership with a lender now so that when you do have need, you will have a place to turn for quick and easy funding.

There are already a number of lenders in the market who are not accepting new applications and are only servicing existing clients, and they are the businesses that are most likely to survive any economic turmoil thanks to the partnership.  We have excellent loyalty programs at Sure Payment Solutions and work tirelessly for our existing clients as much as we do to create new relationships.  So don’t hesitate to establish a partnership with us, it promises to be mutually beneficial for years to come as we weather the economic storm together.

Here’s a link to an interesting article in Business Week about the ups and downs of being self-employed and owning/operating a new business over the past 4 or 5 years.  There are a bunch of interesting statistics describing how people have been forced into starting their own businesses but have struggled through the process.  The article is extremely relevant to the core of our business which is all about helping small business owners save money, acquire working capital, and sustain a working business.

This article takes the angle of looking at the importance of creating jobs by assisting new businesses in opening and staying open, something our economy has not done a very good job at over the past 5 years.  I highly suggest any small business owners or entrepreneurs take a look at this and consider the available funding options and take the necessary steps to ensure you’re able to stay on your feet.

It’s no secret that the amount of lending going on in this country is down as compared to pre-recession levels.  The NY Times article I posted yesterday seeks to blame the lack of lending on the business owners of America.  They claim that applications are down due to a general fear among business owners in regards to taking on debt.  The claim further goes on to state that business owners aren’t concerned with growth right now, instead they are simply concerned with staying afloat.  While it should be every business owner’s goal to stay afloat, growing and staying afloat are not mutually exclusive and any business owner who is not constantly looking to grow and expand is deciding to throw in the towel.  So, we’re here to encourage you to think about growth and imagine how you can take advantage of the current state of things to grow your business instead of sustain it.

Others, like myself, believe that the lending markets are down due to excessive declines by the nation’s lending firms, banks, and credit unions.  And that it is these declines that have stopped business owners from applying for credit.  There is the stigma out there that no one has any money to lend and capital is simply not changing hands despite low interest rates.  While this may be true of traditional banks and other lenders, it is not true for entire financial community.  In fact, in the wake of the first recession, many companies sprouted up to offer loans and loan alternatives to small business owners.  The recession was viewed as an opportunity to help the struggling business owners.

That’s pretty much where we are now, with hundreds of independent lenders seeking out small businesses that require financing.  One of the major problems with this system is the box that each of these lenders prefers their clients fit into.  The target market is so specific that it’s difficult for business owners to apply for the right kind of financing with the right company.  Luckily there are many companies whose sole purpose is to match a lender and a borrower together so that they do not have to search for one another anymore.  This matching process involves many steps but the most important is the industry type.

Most lenders offer funds to only a handful of specific industry types and any other applicant is declined simply for the type of business they run.  While this is very common, it is also very undesirable.  We’ve launching a new industry specific lending program designed to make a realistic and fair offer to any applicant no matter the industry or size of the business.  This is not to say that there won’t be declines, as there will be.  This is to offer everyone a fair chance at some financing regardless of their industry type.  In addition, we’ve broadened our programs to create stronger offers for the industries that have historically excelled with this program.

We’re confident that we’ll be able to provide you with some form of financing or working capital regardless of your business type.  The one restriction we have still yet to get passed is the time in business filter.  We have not found a successful way to navigate the start up market yet, despite trying our best to offer everyone a chance.  Still, we are working tirelessly to create a funding product for start ups that we hope to be ready for the launch of 2012.  Check back occasionally for more updates regarding new funding programs we are rolling out.

Here’s an article from the New York Times about the struggles that the nations major banks are dealing with.  It’s a good article that touches on the low lending levels.  I find it interesting that the author more or less cites fear as the reason lending is down, blaming business owners who are too scared to take loans to expand and are more concerned with standing fast and steadying the ship.  While this may be true to a degree, with interest rates being held low for at least the next couple of years, it’s the perfect time to be taking out a loan, and there’s an angle here that the author fails to cover in regards to the fear of banks to put money on the street.

It’s important to note that while the major banks are suffering, independent lenders are thriving as a result.  We are pleased to say that our business has continued to grow in light of the economic hardships simply because there is real need out there for working capital and for business loans.  We’re still catering to the needs of the American business owners and have no plan to stop doing so.  If you fall into the category of someone who has looked for a loan from your local bank and been declined, then contact us.  Let us help you meet the right lender and you’ll be back on the track to success in no time.

We are proud to announce a new Loyalty and Gift card program that we’ve been working hard to bring you before the holiday season.  Loyalty cards are something we all use as consumers concerning ourselves with which credit card gives us the best cash back rate or the most miles on our favorite airline.  We use our best loyalty credit card more than our other cards because we like the rewards, and at the end of the day, if the interest rates are comparable, why wouldn’t we use the best loyalty card?  Loyalty programs are great way to increase top line sales by keeping your customers coming back for more and offering them free rewards for using their cards frequently.

We’ve partnered with the best in the business at custom loyalty and gift cards to bring you branded cards and the most comprehensive tracking system available on the market.  With our systems, you’ll be able to track every customer, when they visit, when they use their cards, how much they buy, what points they’ve earned, and how often you can expect to see them.  In addition, our email marketing system allows you to send out automatic or manual email marketing blasts to your loyalty card members offering new promotions, or just inviting them in when you’ve got something new going on.  These programs work for any business that has or aims for repeat customers from retail, to restaurants, to service oriented businesses.

There are a few ways loyalty cards can improve your top line:

1.  Increase Average Ticket Size – Accepting loyalty and gift cards impacts your average ticket size.  It’s statistically proven that the average ticket size of merchants after they begin a loyalty program increases by 15 – 20%.  Customers are more likely to purchase more goods if they know they are going to earn points/rewards for their purchases.  It gives a customer the freedom to purchase without guilt and that leads to more sales and larger sales.

2. Reduce Customer Attrition – Once your customers have opted into a loyalty card program they are significantly less likely to seek out a competitor.  With rewards points accruing, customers are hooked into your brand and will remember to shop at your establishment if you have something they need instead of looking elsewhere.  In addition, they will visit your business more frequently.  The significance of these benefits will depend somewhat on your industry, with customer frequency being higher for businesses like restaurants and other daily services, and the reduction in customer attrition being more prevalent for retail and service oriented businesses where the customer knows they can get x, y, and z at your store instead of somewhere else.

3. Maximize Word of Mouth Advertising – Marketing is a huge part of any business owners job, and most business owners will agree that word of mouth advertising is the most successful, despite being a small part of the actual marketing budget.  Loyalty programs improves word of mouth advertising as it gives customers something to talk about with their friends.  These programs are still fairly uncommon among non-financial institutions, so a friend who has a loyalty card with your business and uses it is likely to tell their friends about the program and how great it is.  This advertising is priceless and is one of the many benefits of these programs.

In addition to these benefits, managing your loyalty program is extremely easy with a simple web portal that helps you track your customers, their points, and their visits.  This can help you determine what marketing strategies to use for different types of customers.  Our portal helps you come up with marketing ideas to use as well and facilitates the email blasts you’ll want to take advantage of to stay in touch with your customers.

We’ll also help you customize gift cards that fit your business attitude.  You will get to work with a designer to come up with a custom design including images, logos, and even custom card shape and size.  This is a great opportunity for creative marketing to try and grab your customers with a feeling you want to project.  An interesting card design can be the difference between having a few customers enrolled and increasing your customer base simply as a result of the innovative card.

Lastly, our gift and loyalty programs are compatible with just about any other existing program allowing us to roll over any current gift or loyalty program you may have in existence without your customers losing points or rewards.  Enrolling in our program is simple and only takes a few minutes.  Contact a Sure Payment Solutions representative or follow this link to fill out a form to discuss a loyalty program today.