There was a time when it was easy to get credit for a small business—as easy as walking into any bank or even simply pulling out a credit card. However, the credit crunch has hit no one as hard as small business owners. Cash-strapped banks are reluctant to invest in your personal dream, and even investors seem reluctant. Here are a few tips for getting the small business credit that you need to fuel your endeavors.

• Keep your papers in order. One mistake that many small business owners make is looking for small business credit empty-handed. Not having necessary papers, such as a detailed business plan and a vision statement, shows that you haven’t thought your idea through. While even the best written business plan won’t guarantee credit, it will show that you are a business professional with a good idea of how to use a loan to move your company forward.
• Don’t mingle personal and professional. It’s tempting when starting a business to use personal resources such as personal credit, a home equity line, or other non-business resources to get started. However, the consequences can be grim. Are you willing to make your kids go without shoes if a vendor pays late? How about losing your home? Using personal credit for business purposes may feel like an easy fix, but it places your personal financial life in jeopardy. Plus, it robs your business of the chance to build its own credit record—which brings us to our next item.
• Build your credit. Most people are aware of the need to build their own personal credit, but your rating is just as important in the business world. This will increase the chance that you can get money for expansion and other opportunities as needed. Once you have established accounts with your top vendors and suppliers, ask about a revolving credit account. IF paid off in a timely manner, this will make you a more attractive credit risk to banks and financial institutions.
• Go local. Local banks and local bankers are often your best resources when looking for small business credit. There is a good chance they see the same need in the community that you do, and will be more willing to finance a small business that addresses these issues. In addition, a local banker will often take the time to get to know you, and can thus be a source of information and advice about your town’s unique business climate. Even if you don’t get that line of credit with your first application, begin building relationships now.
• Think long term. Quick money always sounds good, but you are building your business for the long haul. You should plan finances and debt accordingly. Think about how every credit and financial decision will affect your business and your credit standing in the years and decades to come. In a tight business climate, there is no room for hasty decision making and a lack of long term vision.

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With the US economy rebounding, a lot of the major retailers are predicting that feudal buying by consumers will continue into the later half of 2009.

I think that when there is an economic down turn, people start to be careful with their expenses and this becomes a habit that continues into better times.

Economic down turn might not be such a bad thing after all, eh?

We came back from Tesco yesterday with our weekly groceries, with a $80 bill. We were quite surprised because a few months back, we would have got the same stuff for around $60.

The rising oil prices, the global credit crunch and the inflation make for a difficult time ahead. Even though the oil price has drpped down slightly compared to a few weeks ago, prices are still on the rise for groceries and food items.

In terms of small businesses, now is the time to be careful. Consumers are fairly tight with their purses and especially for service based industries such as design and software development, projects are hard to come by.

Online companies are better off drawing back slightly on their online marketing expenditure. Cash flow should be planned in detail.