how to offer chase credit card for financing on my shopify store

hi everyone this is daiyou from ecom ops,today i'm going to talk about,credit cards why am i talking about,credit cards it's not logistics well,i think that credit cards are such an,important part of your operations a lot,of people have been asking me about it,actually,i would argue that if you can get access,to good credit cards it would be,actually a mistake not to use credit,cards,in your e-commerce or drop shipping,business i'm gonna tell you why i'm,gonna tell you about,some suggestions for great credit cards,for e-commerce as well,let's get to it,alright so why credit cards,pretty simple in this business and,probably most businesses,cash flow is king now are you finding,yourself doing this,are you using paypal or using bank,transfers a debit card to pay,your facebook ads and you,are paying upfront for those ads some,days that you have to wait for stripe or,paypal to release your payment you,have to pay your suppliers and you don't,have enough cash and that's actually,uh if you don't have a paypal hold for,example i'm sure a lot of you out there,like if you're doing this,you're you're having a lot of cash flow,issues sure the cash might be there,it's in someone else's account it's in,paypal's account or shopify's account,but you're not having that short-term,cash to make you comfortably live your,life or run your operations,credit cards completely change up,that equation especially if you're using,an e-commerce so the most common way to,use it is probably,paying for facebook ads now depending,your billing cycle,you're paying off your credit card bill,after you know 30 days or so sometimes,even more depending on the cycle and you,can carry that balance,over that billing cycle completely free,of charge i mean it's literally,like a free loan over that 30-day period,and by the way sometimes we're longer,but,i'll talk about that later your,short-term cash flow becomes,much better i mean the credit card bill,is still not your cash however,your short-term cash flow what's in the,bank that situation is a lot better and,gives you a lot more flexibility to live,your life,and run your business operations and pay,your supplier and you know pay your,employees,so let's imagine this let's say you have,uh you spend twenty thousand dollars in,a month on facebook,ads uh with a credit card and let's just,say your row as,is 2.5 x and you make 50 000,in revenue that month you need to pay,your supplier let's say upfront,with a bank wire let's say fifteen,thousand dollars or so,on that plus some other costs let's say,the team,uh all your other operational costs you,have to pay five thousand dollars so,basically that leaves you with ten,thousand dollars in net margins,for the month however because,you don't have to pay that twenty,thousand dollar credit card,until later you have the full thirty,thousand dollars in cash sitting in your,account,that you're able to do whatever you want,to expand,uh to you know again live your life now,that money is not all yours you still,have to,pay that uh bill eventually and you,should definitely pay it on time by the,way,however you know you can imagine that it,gives you,so much room to make your business,work so much room to live in this,industry where short-term cash flow is,just so important,another reason why credit cards are,great is,rewards now it depends on the country uh,us credit cards tends to have the best,rewards um,however different countries have,different deals,but getting rewards or cash back from,just literally doing nothing,and then just using your credit card,it's amazing i mean i've been splitting,credit cards a lot over the last like uh,you know 10 20 years actually,and uh i have something like 3 million,points across chase and amex and all my,other credit cards,uh that's in my balance i've been,spending them as well i haven't had to,pay for,a personal vacation plane ticket in the,last like five years for my wife and,myself and we usually fly business class,just on miles,converted from points so you know that,this is all,just literally from nothing than just,spending,my credit card using our credit card on,facebook ads or in other expenditures,so obviously that's a huge benefit as,well now a couple things to be aware of,though,uh the first important thing is that you,always want to pay,off your credit card bill on time i mean,this is really really important,some people might be concerned about,credit card bills and high interest,rates but,that doesn't matter if you pay off your,bill on time because interest doesn't,accrue,until you're late on a payment so don't,you know pay late you know that's going,to get you in trouble however if your,response if you run your business,responsibly and manage your cash flow,there's no reason why you're running to,that issue at all now and by the way,there are actually some deals where you,can have,zero interest rate for up to 12 months,or 18 months,and we'll talk about that a little bit,more later now the thing thing to be,aware of,is that if you don't have a good,financial record so,in the us for example you have to have a,good credit,score then you're just not going to be,able to apply for that many options that,many deals or credit cards and whatever,credit card you're going to get,is probably going to have a low credit,limit starting at a couple thousand,dollars maybe,however you know this is where you still,want to get credit cards as soon as,possible because,you want to start building that credit,even if you start with a two thousand,dollar credit card,uh the more that you use it the more you,pay it off on time,the faster you can actually start,requesting higher and higher credit,limits you can get,five thousand dollars ten thousand,dollar twenty thousand dollar credit,card limits,probably within i don't know maybe a,year or a couple years of just,actively using it and building up that,credit and you know,being able to positively impact your,cash flow through that my parents,actually knew about this so so they,actually,gave me a credit card when i was like 16,or something i forget exactly,but now i have enough credit to have a,couple hundred thousand dollars,in credit limit i don't use it all but,still just having that limit,um allows me to do a lot in terms of,financing my business in the short term,so that we're not,facing cash crunches when things are,tight now another thing to,be aware of is that you can't really use,your credit card where,it's not really a good deal to use your,credit card on,everything so in this business,particularly uh,most suppliers aren't going to accept,credit cards,and even those that are they're going to,charge you a higher fee,or they're going to just include the,price of the processing credit cards,within their price itself,credit card fees for the receiver tend,to be quite high,could be like you know two to three,percent or more and especially,for low margin businesses like,fulfillment for example,they're not going to be able to allow,you to just use credit cards for free or,at all now that being said though uh,facebook ads google ads any kind of ads,they make a ton of margins so they don't,care about that three percent fee,and they let you use credit cards all,you want so,if you're in this business like your ad,spend is going to be,most likely by far uh your biggest,spend anyway so just being able to use,your credit card set,put your credit card on the facebook,account setting and forget it you know,that's probably all you really need to,be able to give you a lot more freedom,in terms of your cash flow all right so,i'm gonna give some of my favorite,recommendations that you should,seriously consider,if you're running an e-commerce business,uh you know for credit cards,now a couple disclaimers first these are,us-based,offers different countries have,different offers and you know i,definitely advise you just to search for,the best offers,in your country what's offered there and,second is that i can go on forever,talking about the best credit cards and,how to optimize them and how to,uh you know optimize how your redemption,value works but,i want to keep this short so that's,probably going to be a second video,sometime later,if you're interested to see that by the,way i mean comment below i might make,another video going to much more in,depth all the credit options and how to,use them,and the best way to redeem your points,now so first in terms of,rewards cards the two best cards,are the chase inc business preferred,and also the american express business,gold the reason why these are amazing,is because they give bonuses on ad spend,the chase inc preferred business uh that,gives you,3x chase points uh on every dollar of ad,spend facebook,whatever it might be the american,express gold business,it gives you four x points on every,dollar ad spend now both of them have,a limit of how much you can apply that,ad spend,to in terms of bonuses per year uh both,are 150,000 um you know limit in terms of how,much you can get bonuses from those,but that's not bad at all what i like to,do is actually i just use both of them,so when i hit the limit on one uh then i,start using the other and you know take,advantage of the limit on the other but,that's not shabby at all,because if you think about it first you,might use chase and,a hundred fifty thousand dollars spend,that equals four hundred and fifty,thousand points,uh and after you use that up you use the,american express gold,you spend another 150 000 in ads and uh,that's going to be,600 000 points on american express,all that add together i mean that's a,lot of dang points,and the other thing is that these uh,reward cards are actually a lot of these,cards,especially in the us they tend to have,some pretty massive bonuses,when you first sign up i believe the,chase right now has,a hundred thousand dollars bonus after a,certain,amount of spend just right uh when you,sign up,and then i think the amax has something,like a 70 000,bonus when you sign up and spend a,certain amount so i'm gonna find these,offers actually i'll link to it below,check out these offers because now is,actually a particularly good time to,sign up for these bonuses,because i i it's probably because of,covis so these bonuses are actually,rather high,higher than normal and the thing is if,you really plan these,right these points you know go extremely,far in terms of redemption value so,when we say like three x points or four,x points that that,uh a lot of people might think that oh,that's like three percent cash back or,four percent cash back however there are,very clever ways that you can actually,convert these points into other things,airline miles for example is one of the,better,or best redemption values so as an,example,back in 2017 i flew a,first class round trip on cafe pacific,from,lax to hong kong uh for 240,000 miles now it's a lot but i mean cafe,pacific first class is amazing it's,like a five star experience and i think,at the time those tickets were going for,like eight thousand dollars,in cash so basically i was getting,three cents on each mile that,i converted from chase into uh cafe,miles and which means that actually on,every dollar that i spent on facebook,ads i was actually getting nine cents,of value back now because of cover a lot,of these deals are kind of like you know,kind of iffy right now which is a big,reason why i'm saving,these points as well and again in the,future i'm gonna probably have,a second video talking about all the,ways you can optimize your points as,well to get the most value,out of your facebook ad spend some of,you might not have access to these cards,maybe your credit is not high enough yet,but you'll get there or maybe they're,not offered in your country however,anything is better than nothing i mean,even like one percent or 0.5 percent,cash back,if you think about it you're getting,those rewards for literally doing,nothing then connecting it to,your facebook account so you know it's,really a no-brainer to do this,uh on top of the obvious things in terms,of helping out your short-term cash flow,another category of,rather unique offers that you guys,should look for are zero percent ap our,zero percent,interest offers there's offers out there,that,allow you to carry a balance for zero,percent interest for,12 to up to 18. i've even seen 24 months,actually,like that's insane the other day,actually uh got a chase business,unlimited,uh points card and it gave me 1.5,cashback,and zero percent apr over 12 months,and a 50 000 credit limit i mean just,think about it,it's literally a 50 000 loan,that i can carry my balance for 12,months i have to pay,a minimum payment of roughly one percent,of balance but still like,it is like the cheapest possible loan,out there,now these kind of cars they usually,require a good,credit score and they're not available,to everyone but if you can get access to,these cards definitely consider it,especially,if you have a cash crunch event,potentially coming up,uh for example if you might want to,commit,or invest in some custom products for,example,and you you really want to you know kind,of take out,that cash on credit so you have better,cash flow just to run your ads and,operate your business i mean,definitely something that you should,look out for and consider,and actually the the chase unlimited,card that i signed up for i believe they,have like a,750 uh bonus when you sign up and spend,a certain amount so,if i can find that i'll i'll link that,below as well so you guys can check that,out as well outside of these are,actually a lot more options and like i,said there's a lot of ways to,optimize your spending so you maximize,your value out of these cards and don't,forget like it's not just about rewards,it's mostly about the flexibility for,you to be able to manage your short-term,cash flow better,and not be always just cashing cash out,and worried about paying your suppliers,paying your employees because cash flow,is so important all right well uh i'm,gonna make another,video eventually about more details on,this but for now that's it,so thank you guys for watching join our,facebook group,ecom ops where we talk about a lot of,e-commerce operations,topics and we are a premium fulfillment,company so,if you're interested in the best in the,business and you have steady orders,check us out e-commerce.com i'll link to,it below,until next time this is daiyou from ecom,ops,see you guys later

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