Does checking my own credit lower my credit score?
I'm falling behind on my credit card payments - how can I catch up?
What is cash flow?
What are some low-cost ways that I can market my business?
Why do I need to keep business records?
I want to start my own business but don't know where to begin.  Can you recommend resources?
Where can I find information about licenses and permits needed to start a restaurant?
There is an account on my credit report that is not mine - how can I have it removed?
How can I improve my credit score?
I'm falling behind on my credit card payments - how can I catch up?

 

Does checking my own credit lower my credit score?

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Not at all - you can check your own credit as many times as you want.  ACCION recommends that you check your credit report with each of the three credit bureaus once a year to ensure that the information is up to date and correct.  You can request your free annual credit reports from http://www.annualcreditreport.com/. ACCION can also provide you with a free copy of your credit report, as well as tips on how to build or improve your credit, at our credit workshops.

 

I'm falling behind on my credit card payments - how can I catch up?

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You have a few different options for getting out of debt.  Your best option is to call the creditors and set up a payment plan.  Be sure to ask for written confirmation of the agreement.  You can also negotiate to pay a portion of the balance as a settlement. However, the creditor will request the amount agreed to immediately, so you'll need to have some money saved.  Finally, call your creditor and negotiate a lower interest rate.

 

What is cash flow?

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Cash flow is the amount of money that your business takes in and spends during a period of time.  In basic terms it means, "Am I going to have enough cash in my bank account to cover my expenses?"  To analyze the cash flow of your business, download ACCION's cash flow worksheet.

 

What are some low-cost ways that I can market my business?

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Business owners with a small marketing budget can find creative ways to market their products or services.  Put aside some time each week for marketing and ask your employees to help you come up with original ideas that will help sell your products.  You can also use any of these low-cost marketing ideas:

• Word of mouth. Ask your clients to mention your business to their friends, family, and anyone else they know!
• Make your customers feel special. Include something very inexpensive with a purchase -everyone loves to get something for free.
• Order business cards online for free at http://www.vistaprint.com/ (you have to pay $5.95 for shipping and handling). These are perfect to give to customers and to hand out at networking events and meetings.
• Host an annual event and invite your customers. You could organize a baseball game or a pot-luck picnic.
• Keep a customer birthday list. On their birthday, send them a card and give them a discount enticing them to buy from your business.
• Be kind to your customers. It is over five times more difficult to acquire a new customer than to keep an old one. If a customer suffered a bad experience pick up the phone and acknowledge what happened, and offer them a discount on their next purchase.
• Hand out brochures and fliers.
• If you have a small store, visit larger companies selling similar products and see how they market their products.
• Advertise in the yellow pages or in local newspapers.
• And last but not least, Network, network, network!

Be sure to check ACCION's workshop calendar for free credit and business training and workshops in NYC.

Why do I need to keep business records?

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Records of your business' revenue and expenses are an essential part of running a small business.  Most importantly, many banks and lending organizations require that you present business records when applying for a loan.  Keeping business records will also allow you to:

• Track the products that are most popular with your clients and offer them more of what they want.
• Notice trends in sales and expenses which will help you making better decisions about your business. For example, which are your best selling months and where you can reduce costs during your slowest months.
• You will see over time if you are paying a good price for your inventory, or if you can negotiate better prices.
• Strategize about what next step to take with your business and evaluate your month-to-month cash needs.

ACCION makes it easy for you to start keeping business records:

Download a Basic Recordkeeping Booklet with instructions

Download an Accounts Receivable Tracking Worksheet

 

I want to start my own business but don't know where to begin.  Can you recommend resources?

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Starting a business is hard work, but by planning and executing a start-up strategy you'll soon be underway.  You first need to determine your unique selling point.  Ask yourself, "How is what I am offering unique?"  Then, start saving money.  You'll need to have start-up capital, as most lending institutions will ask you to invest a percentage of your own money in the business.

You'll also need to decide on the structure of your business--will you be a sole-proprietor, or will you have a partner?  Finally, research any licenses and permits you'll need, and set an expected date that you'll open your business. 

All of this information can (and should!) be summarized in your business plan. 

Download a Business Plan Template and a Business Start-Up Checklist

 

Where can I find information about licenses and permits needed to start a restaurant?

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The Online Permit Assistance and Licensing (OPAL) (http://www.nys-permits.org/) website is a good small business resource in NYC for information on licensing and permits in the State of New York.

New Jersey business owners can call the New Jersey Commerce & Economic Growth Commission Licenses and Certification Hotline at (609) 777-2642 or 1-800-533-0186.

 

There is an account on my credit report that is not mine - how can I have it removed?

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Errors on credit reports are extremely common--over 70% of individuals have incorrect information on their report.  The two most common reasons for credit report errors are mistaken identity and stolen identity:

Errors can occur when two people have very similar names and the account gets placed on the wrong credit report. Contact the credit agency with a letter explaining why it is in error and enclose documents that support this as well as documents proving your identity.

If you suspect that your identity has been stolen, file a police report and contact the Federal Trade Commission's (FTC) Identity Theft Hotline at 1-877-ID-THEFT (438-4338) or visit www.ftc.gov/.   You'll also need to contact the fraud departments of any one of the three credit agencies (TransUnion, Equifax, Experian) to place a fraud alert on your credit report.  Then, be sure to close the fraudulent accounts.

  

How can I improve my credit score?

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There are a few simple ways to make your credit history stronger and raise your credit score:

• Pay your bills on time
• Pay off more than the monthly minimum on your balance. If it's possible you should try to pay it all, but if that's not possible, pay as much as you can.
• Do not "max out" your cards or run your balance up to your limit.
• Be patient. Your credit report needs to show how you have handled credit over time. Accounts less than two years are considered new credit and do not add as much strength to your report as an account you have handled well over a longer period of time.
• Do not apply for credit in too many places in a short amount of time.
• Makes sure all information on your credit report is accurate and up-to-date. Contact the credit agencies right away to correct errors.

Be sure to check ACCION's workshop calendar for free credit and business training and workshops in NYC.

 

I'm falling behind on my credit card payments - how can I catch up?

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You have a few different options for getting out of debt.  Your best option is to call the creditors and set up a payment plan.  Be sure to ask for written confirmation of the agreement.  You can also negotiate to pay a portion of the balance as a settlement. However, the creditor will request the amount agreed to immediately, so you'll need to have some money saved.  Finally, call your creditor and negotiate a lower interest rate.