How to Accept Payments Online - An Illustrated Guide for Upgrading Your PayPal Account From Premier to Business

Congratulations!  Your PayPal payments are at the point where you’re ready to upgrade to a Business account.  The good news is that upgrading is a simple process, although it does involve several steps. The following article will walk you through the process of setting up your business account for payments.

Step 1 – Navigate to your Personal/Business Information Page

Once you’ve logged into your PayPal account navigate to the following page, My Account -> Profile -> Personal/Business Information.

Step 2 – Click the Upgrade Button

 

Step 3 – Enter Your Business Information

In this step you provide PayPal with your physical address, contact information for customer service reasons, and some data regarding what type of business you run and how much money you make.

Step 4 – Upgrade Completion & Business Account Confirmation 

You’ll know you’ve successfully entered your business information once you reach the page shown below, however, you’re not finished yet.

 

When you go back into your account the screen below will show up above your Account History section on the My Account -> Overview page.

Click the Go button and you’ll be taken to the confirmation page.

Step 5 – Submit Your Debit or Credit Card

When you click the Save & Continue button shown in the image below you authorize PayPal to place a small charge on your card that you’ll use in the next step to verify you’re the owner of the card. 

You’ll know you successfully submitted your information when you’re taken to the following page.

You should then receive an email that looks something like the one below:

Your card ending in XXXX has been charged $1.95 USD on Apr. 1, 20XX.

Check your card statement in 2-3 days and find the 4-digit PayPal code for the charge.

Return to PayPal and enter the 4-digit code to confirm your credit card.

The charge will be refunded to your PayPal account after you confirm your card. When you confirm your card, your Sending, Receiving and Withdrawal limits will be lifted and you will be a Verified member.

If you access your card statement online, you will see the number within 2-3 business days. If you don’t have online access to your statement, please wait for your printed statement to arrive by mail.

Step 6 – Confirm Your Debit or Credit Card

The charge will appear on your credit or debit card statement as shown below.  You’ll see a four digit code that PayPal associated with your transaction.

When you log back into your PayPal account, the “Verify Your Information” screen below will show up above your Account History section on the My Account -> Overview page.

Click the Go button and you’ll be taken to the page below. Enter your PayPal code and click the Submit button. If you lost the PayPal code you can request it be emailed to you again with the “Resend PayPal Code” button.

Upon submission of your PayPal code the $1.95 charge is refunded and you’re taken to the screen below.  Click on the Account Overview link.

Step 7 – Choose Your Payment Solution

You’ll see the last part of the business account setup on your Account Overview page shown below.  Click the Go button.

PayPal will ask you a few questions regarding your business needs on accepting payments online, processing credit cards, sending email invoices, and merchant bank account access.

Based on your answers, PayPal will suggest which of their payment solutions that should would work for your business.  Don’t worry about answering all the questions appropriately the first time, you can always go back through the Recommendation Wizard to review the options.

The different methods of receiving payments offered by PayPal are:

• PayPal for your eBay business
• PayPal as an Additional Payment Option
• Virtual Terminal
• Email Payments
• Website Payments Pro
• Website Payments Standard

Business Account Upgrade Complete

Now your business can use PayPal to let your customers pay for your products or services with a credit card, electronic checks, or their PayPal balance.

Your Business Credit Card Application was Denied, Now What?

You’ve applied for a business credit card and the application hasn’t been approved, what do you do?  A good place to start is to investigate the reason behind the decision.

Credit History Factors
If your business is a sole proprietorship, you may be denied based on your personal credit history.  If your credit history is bad, you’ll need to work on improving it in order to qualify for a credit line, just as you would with your personal situation.  If you have a larger organization and you’ve incorporated it, the business has its own independent identity and therefore will apply for credit on its own.

Why Was I Denied Credit?
As with any credit card application, you’ll get a notice in the mail about why you’ve been denied credit.  Generally, this takes several weeks to go through.  If you are very anxious, you could call the company’s customer service line (usually provided in the Terms of Service on your application) to inquire about the reasons.  Most often, the reason is either you don’t make enough money through the business or your personal credit is not stable enough.

Improving Your Business Credit
The best way to get yourself out of this picture is to work on improving your business’s credit identity or improving your own.  Pay down debts you have, improving your long term credit history by using smaller lines of credit you may already have, and pay your bills on time.  If possible, secure a pre-paid business card using the business’s federal tax id number to begin building its credit if it is not yet established.

These factors show that you are a responsible borrower and help the company to insure you’re worth the risk.  If your personal credit is getting in the way, you may wish to contact a lawyer about incorporating your business which will give it its own identity, free from your own.  Talk to your attorney about the benefits of doing this for your business.

Ways to Raise Capital
If you are in need of capital for your business, you may not have months or longer to wait for improvements on your credit score to happen.  There are several options available to you. 

Borrow from a Local Bank
Get a loan from a local bank that you’ve done business with in the past.  Request a line of credit through them, but first outline a business plan to them, showing the executives exactly where your income comes from and how reliable it is.  While you can’t haggle with the internet companies, you can do so by picking up the phone, too. 

Apply for a Secured Credit Line
You may be able to get a credit line based on the value of assets you have in your business.  If you have expensive equipment that is bought free and clear, secure a loan on its value.  If you have property that is for the business that you own, you may be able to tap into the equity there.  Lines of credit like this are often affordable and they often give you the opportunity to prove your value to other lenders over time.

Apply for Another Business Card
Just because one credit card company turned you down doesn’t mean another will.  However, be cautious as you consider applying for other business credit cards.  Applying for too many will negatively affect your credit rating because it shows a pattern of being denied credit, which can raise a red flag.  Instead, apply for one or two, find out why you weren’t approved and look for another option for borrowing.

Equipment Leasing Program
If you are still having trouble obtaining capital and you have equipment that you own, you can consider an equipment leasing program. Depending on the type of equipment, the leasing company will purchase it from you, allowing you to keep it while you pay the lease payments.

Peer to Peer Lending
Another option if you need a short term loan is to try peer to peer lending using either Lending Club or Prosper. These companies allow you to post a profile requesting money. A pool of potential lenders will view your profile and potentially fund your loan request. If your loan request is funded, you will be told the interest rate and given the choice to accept the loan. If you choose to accept the loan, you will pay the site back directly on a month basis until the loan is repaid in full.

Factoring – Selling Your Invoices
If you have accounts receivable, you could consider factoring. Factoring involves selling your invoices at a discount so that you can obtain your company’s cash quicker. The factoring company will purchase your invoice from you, typically paying you 80% of the total up front.

From there, they will manage the collection of the invoice. Once the invoice has been paid, the factoring company will pay you the 20% remaining on the invoice minus their fees. Factoring companies charge anywhere from 1%-5% of the invoice total based on a variety of factors.

Does Advanta Have the Best Credit Cards for Your Small Business?

Advanta, a leading credit card provider, offers several business credit cards ideal for the small business owner.  Their main cards include the Advanta Platinum BusinessCard with Rewards and the Advanta Life of Balance Platinum Card.  There are various benefits to choosing Advanta for your credit line needs.

Business Credit Card Versus Standard Credit Card
A business card is often the best choice for business owners rather than standard credit cards.  Many of these lines of credit are based on the income the business has rather than your personal income.  Additionally, as you grow your business, you can differentiate your credit history and credit score for the business from your personal credit score. 

This will allow you keep your personal finances separate from your business accounts, making it easier for accounting and for tax time.  Another difference between business credit cards and regular credit cards is their flexibility.  Business credit cards often offer lower interest rates and fewer fees, and many offer travel rewards. 

Consider the Card Benefits

A look at Advanta’s Platinum Business Card with Rewards is a great way to see the benefits of using a business credit card for your small business.

• Low APR: Many cards offer an introductory period of 0% financing for balance transfers as well as new purchases.  Most APR’s are fixed rate, which gives your business flexibility to borrow without having to worry about current rates.

• No fees:  The Advanta card does not have annual fees, reducing the cost of borrowing to the small business owner.

• Rewards:  Most business credit cards also have a rewards program, such as a travel reward program.  This is an excellent opportunity to cut down on the expenses of sending your employees from one location to the next.  Cash back programs are also available on the Advanta credit card, too.

• Multiple users:  If you like to provide your employees with a spending limit every month to pay for their travel expensive or supplies, these business lines of credit will allow you to do just that.

• Organization:  Make payments on all of your incoming invoices.  Pay them to keep clients happy.  At the end of the month, you can tally expenses easily by your statement or monitor them online.

Obtaining A Business Account
Can anyone get a business credit card account?  In the application for any credit card, credit scores are taken into consideration.  In some cases the credit card companies will accept the business’s credit score, but most often your personal credit score will be required. For new business owners, this may require that your personal credit score be in good standing. 

In addition to this, you’ll need to show proof of your business’s income and net worth.  The credit card company wants to be sure your business line of credit isn’t more than you can afford to pay.

Should You Go With Advanta?
When shopping for a business credit card account, you definitely want to take Advanta into consideration.  The company has several benefits to offer to you.  If you are considering other business accounts, be sure to compare them to these standards. 

One reason to go with Advanta is the low interest rate offered for initial card holders.  Rates on the Advanta Platinum BusinessCard with Rewards are great, starting under 8%, but rates vary from person to person. 

You also want to look for low fees, such as no annual fee.  Look for a long term grace period (the amount of time you can hold a balance without being charged finance charges.) 

Finally, if you want to have a rewards program, be sure the company offers one.  The Advanta line does offer them, giving you two options.  One is a travel reward and the other is a generous cash back offer.

Busy entrepreneurs, look no further. The Advanta credit cards are an ideal choice for those in a small business looking for flexibility, great rewards, no fees, and low rates.

Advanta Life of Balance Platinum Card

Great small business card for entrepreneurs that are carrying a credit card balance. Get a low rate on all balances transferred to your card within 3 months, Advanta Life of Balance Platinum Card.

• 2.99% APR for Life on Balance Transfers
• Business Branded Card
• 6% Cash Back or Travel Rewards
• No Limit on Earnings
• No Annual Fee

Get more Info…

American Express Business Gold Rewards Card

One of the top credit cards chosen by small business owners, American Express Business Gold Rewards Card.

• OPEN Savings Cuts Expenses 3-25%
• Unlimited Membership Rewards
• Customized Expense Reports
• Easy Quickbooks Download
• Additional Employee Cards
• 500,000 Express Cash ATMs

Get more Info…

Apply for a Business Credit Card at Your Local Bank

Getting credit as a new small business can be frustrating.  Think back to the catch-22 that many college graduates face, companies only want to hire employees that have experience but how are new workers supposed to get experience in the first place if no one will hire them?

Managing Financial Risk
It can be the same with a new small business. Banks don’t want to lend you money since your business doesn’t have a credit history to indicate whether you’ll pay back the money you borrow.

You can definitely understand the perspective of the employer and bank, they’re both trying to minimize the chance that they’ll lose money when taking a risk on an unknown employee or borrower.

What’s one way that companies use to build trust and reduce risk when looking for future employees?  They setup an internship program where they can get to know prospective workers without the cost of full time salary and benefits.

Open a Personal Bank Account
You can use the same principle when applying for a business credit card by already having a personal account at the bank where you apply.  When you approach your local banker about opening a business card, you’ve already gone through a trial period by having an account at their branch. 

They can see your account balance history and whether you have any personal credit cards through the bank.  Since banker already has a financial relationship with you and can speak with you face to face about your current financial situation and your plans for your business they are better able to gauge the risk of opening a line of business credit.

Open a Business Bank Account
Of course, simply having a personal account with a bank doesn’t automatically qualify you for a business credit card.  The best approach is to first open your business bank account at your local branch.  Once you have that established, talk to your banker about your need for credit for your business.  Ask what different options they offer and what you need to do to get approved for a credit card. 

Build a Solid Financial Record
Just opening the bank accounts isn’t enough.  You’ll also have to be responsible with your personal finances to set a good track record.  No bounced checks or late credit card payments.  Keep a steady balance in your business bank account to establish a track record of financial liquidity.

Having a personal and company bank account at the branch, a relationship with the bank manager, and a history of managing your money wisely will give the bank more information to help them gauge the risk of granting your business a credit card.  Of course this isn’t something you can just do overnight so your best bet is to get started today.  If you can build a good track record and a personal relationship, your chances of being approved for a business credit card look pretty good.

Why Small Business Credit Cards are Vital to Successfully Mastering Your Finances

If you’re a small business owner or you’re planning to be one soon it’s important to think about credit cards.  No, not the ones you have in your wallet right now, you’re going to need new ones!  That fact will excite some people and terrify others.  No matter what your case is, it’s vitally important to open a line of business credit.

Do I Qualify?
One of the biggest questions I get about opening a business credit card is whether or not a certain business is ‘too small’ to get a business credit card.  A lot of people think they have to be a large corporation.  On the flip side others think it’s fine to just use a personal card because their business is so small.

No matter what size your business is it’s best to get a business credit card rather than use your personal one.  It will take a bit more work to qualify for a good line of credit than it did for your personal account, but the effort is well worth it.

Why Can’t I Use My Personal Credit Card?
You might have heard it before but it bears repeating.  You should never mix your personal finances with your business finances.  There are many people who do this, and hopefully you won’t be one of them.

Whenever you make a purchase you need to know whether the purchase was for your home or business.   You might think that it is easy enough to keep track of, but you’d be surprised at how many people spend time wracking their brain to figure out if that dinner out was for business or pleasure. 

When you have a business credit card there is no guessing.  Time is money, and you’ll have more of it when you have a business line of credit.  All you’ll need to do is track your business expenses on one account, and personal expenses on another.  There is no need to guess what goes where.

Along those same lines, there might come a day where your business taxes are audited.  The IRS likes to see a separate business line of credit where it is obvious which things were purchased to further your business.

How Do I Apply For a Card?
The next bit of news is tough to take for some entrepreneurs who are nervous about starting a small business.  It can be a lot harder and is more work to get a business credit card.  Don’t worry; you’ll get through this! 

Business credit cards are just more customized than personal lines of credit.  There are different limits and types of card according to the kind of business you run and how much credit you need.  Obviously, the larger the scale of your business the more credit that is needed.

There are different requirements depending on the company you choose to apply with.   Some may require you to submit a full business proposal.  This will include where you plan to go with your business, what type of business you’re running, what you plan on doing with the line of credit, how you plan to repay the credit card, and any collateral you have (among other things- check with your chosen company). 

Many creditors also require a financial statement from you and will run a credit check.  Keep in mind that there is a difference between a personal credit reputation and the one you will build with your business.  If your business does not have a credit reputation your personal one is the fallback.  This can either help or harm your situation, but there are offers that will work for you if you do your homework.

What Should I Look For?
Don’t just settle on the first credit card offer you see, it’s best to shop around a little.  After all, there are many different credit card companies clamoring for your business, so you should make them work for it!

Definitely check the APR the card charges as well as any annual charges and hidden fees.  If a certain offer is too high you can try and negotiate with the credit card company to get it lowered. Of course, that depends on your credit score and your business.

Beyond the general things there are also special perks that come with owning a business credit card.  Here are some of the more fun things you’ll come across:

• Business discounts on airfare, hotels, car rentals, phone access, copy services, and shipping services. These discounts are special for you just because you are a small business owner.

• Introductory offers are another thing to check.  There are many that offer no payments for six months to a year or a 0% APR for a certain amount of time.  When you just need a chance to get your business up and running this can be a big help.

• Business rewards a great as well.  If your business sends a certain amount of money you will get rewards back.  This might be in the form of money, air miles, products, or services. 

Get Ready and Apply!
You need to gather up all the information the credit card companies will ask you for and apply as soon as possible.  You can really start your business the right way and get the funding you need with a business credit card.  Trust me, it will make your life a lot easier in the long run.