Since the recent earth shifts in Haiti, Chile, Taiwan and Indonesia many government officials and President Obama, are shifting their attention to relief-efforts for these devastated countries. What better reason to stop and think about the value and fragility of life. However, because of the recent attention on other countries, efforts to ease our economic disaster have been temporarily been put on the back burner. With $379 Million  in U.S. Taxpayer dollars spent on Haiti alone, the U.S. economy is maintaining its recession. In other related news, the 9.6% unemployment rate of February continued its consistency all through the beginning of this month.

Despite these humanitarian efforts, small business owners maybe getting the bad end of it. With the governments focus elsewhere, the hiking taxes, budget cuts and lay offs, the small business owner may feel as if his economic crisis to save his business and possibly family, may not be a priority on the U.S. government’s agenda. Despite disaster of both economic and geographic proportion, business owners still have the choice of choosing EZ business loans to maintain their businesses. In essence, although the disaster apart from the U.S. the business owners and citizens themselves must see to it that they are getting the funding they need to thrive when the government officials remain complacent from the more serious world issues.

The credit card act of 2009 had some unforeseen consequences since its institution February 22, 2010. Although, the act focuses only on protecting personal credit card users from arbitrary interest increases, over the limit fees, hidden charges and hidden term changes, the act had inadvertently effected the ” hike in [business card interest] rates and fees to compensate for the revenue they will lose on consumer cards as a result of the [credit card act of 2009]“, Says Emily Maltby of the Wall Street Journal, Small Business.

Another unforeseen consequence is that business owners may have a tendency to take advantage of using a personal credit card to maintain or expand their businesses. The problem “is that business owners who rely on consumer cards could wind up damaging their personal credit scores” says, Gerri Detwieler, a personal finance advisor for credit.com. The general rule of thumb for business owners, is to maintain a distinction between their personal and business credit. However, because of economic factors, many business owners may not exercise this rule.

On the other end, the act was also an attempt to increase consumer spending to pull out of the economic recession. In the next few months ahead, many can assume an increase in consumer spending.

Businesses familiar with the EZ business loans credit card based cash advance may find yet another opportunity to use an EZ business loan. With business credit card rates hiking, and consumer credit card use increasing, business owners can use a business cash advance in place of a business card or a personal card. Especially since the loaned is payed through a credit card processor, merchants can expect to pay off their loans quickly because of consumer card use increase.

Sources

Maltby, Emily. “Entrepreneurs Weight Credit Card Options”

Wsj. 11 February 2010 Web. 3 March 2010

An executive may see a bankruptcy as a speed bump. Although, an entrepreneurs may see it as a wall. This is because, not only are their business assets at risk but also their personal assets.

Small business owners, not yet incorporated, all across the country are being forced to file since the economic downturn. In this situation, the court doesn’t see the difference between the owner/owners and the business.  Sole Proprietorship’s, Partnerships, and even Limited Liability Companies are facing these risk because their loan agreements often use their personal assets as leverage.

Lesley Hoenig, attorney of Mount Pleasant, Michigan, States that In a sole Proprietorship, “you can’t say, I’m just filing bankruptcy for the business”. This is because there is “no” business, because its not incorporated.

In 2009 “Total Bankruptcy filings rose 36% to 711,550 in during the first half of [2009] compared with 522,205 cases filed over the same period in 2008″ according to WSJ.com

Many Similar business across the country are victims of losing their personal assets e.g. their homes and cars. This is because many entrepreneurs don’t foresee bankruptcy and are not prepared, this is likely due to the fact that most entrepreneurs try to remain optimistic and have faith in their business. Never the less, when operating a small business or a unincorporated business one must consider the risks in depth, despite the negative perspective. The cliche “Hope for the best, plan for the worst” is an effective mantra in this situation.

Many unincorporated businesses may only have one viable option before filing a bankruptcy, if the business does except credit cards, and that’s a business cash advance. A business cash advance, will not require personal assets, but only the future credit card sales. Many business owners may be able to use the funds to square away any kinds of debts they have or to thwart off other loan agreements by traditional banks. Another advantage is that the business owner may find the loan more affordable than a traditional bank loan because the payment is a fixed percentage of credit card sales, rather than a fixed payment. With a fixed payment, you may come closer to bankruptcy and that is because fixed payment plans are not considerate of earnings monthly, where as a business cash advance is.

If you are a sole proprietor, partnership, or limited liability company that foresee any future risk, it is more optimal use a business cash advance rather than rely on traditional bank loans. Why have your home, cars or any other assets at risk?  EZ Business loans offers a solution that can secure your assets and EZ Business loans can take the risks so you don’t have to.