Costco Connection - January 2006

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PHOTODISC

Smart alternative for business financing

WHILEMAKINGBUSINESSPLANSforthe Jay says another benefit is that the new year, it’s impossible to predict everything Business Capital Line of Credit rate is lower that will require extra cash. Maybe your firm than typical bank rates. Costco members who will need upgraded equipment or you’ll need to qualify will get a rate between prime rate* expand your inventory. If so, an excellent plus 0 percent up to prime rate plus 4 percent. source of credit is the American That means current rates range Express®Business Capital Line of from 7 percent up to 11 per-Credit from OPEN; the small This line cent. Rates are determined by businessnetwork. the personal and business

This line of credit can be of credit financial credit history of the ^applied ^toward ^paying ^bills,^can ^be ^applied^applicant.taxes and employees. It can also For a limited time, Costco ^be ^used ^to ^stock ^up ^on ^inven-^toward ^paying^and ^American ^Express ^are ^offer-tory, upgrade equipment or ing the first year free for the busi-your office location, or address bills, taxes ness line of credit. The annual fee an emergency. for this program is typically $99

To apply, business owners and employees. for Executive Members and $149 must fill out a one-page form; for Business and Gold Star eligible businesses are those members. Also offered are busi-that have been in business for at least two ness credit loans with no origination fees. This years. Lines of credit are unsecured and the offer is good from January 2 through April 2, entire amount of the line is available as cash. 2006. It is available only by calling toll-free What’s more, no minimum bank account 1-888-379-6736.

balance is required. To find out more about the program,

“The good thing about unsecured loans including applicable terms and conditions, is that no collateral is needed to secure the visit costco.com and click on “Services,” then loan,” says Jay Smith, manager of member “Small-Business Loans and Lines of Credit.” services programs at Costco. —Stephanie E. Ponder

*The prime rate for each billing period is the prime rate published in The Wall Street Journal on the first day of that billing period or two days prior to the closing date of that billing period, whichever is higher. For those days that are not a customary publication day of The Wall Street Journal we will substitute the closest preceding customary publication day. Variable APRs are accurate through 11/30/2005.

Another Costco
value: Web sites

WHEN COSTCO MEMBER Rhonda Carnahan took the plunge into starting Ocean Life Arts (www.oceanlife arts.com), an online gift store, the Web site hosting company she chose allowed her to offer only 20 products and left her so frustrated she set the project aside.

Then she discovered Value Web™ by Affinity, the Web site hosting service offered through Costco. She learned that the service let her have as many as 100,000 items for sale, “not to mention that it was half the price of the first host,” says Carnahan from her home in Tempe, Arizona.

“The value Costco members get through this product is impressive,” says Jay Smith, manager of member services programs at Costco. “This package typically costs $99 per month directly through Affinity, but through Costco the monthly fee is $14.95 for Executive Members and $17.95 for Business and Gold Star members.”

The price of the service includes the first-year registration fee for a domain name (e.g., yourbusiness name.com), 50 GB of storage space, up to 200 mailboxes for e-mail, the ability to stream audio and video files, shopping-cart software and the means to track visits to the Web site. The design tools available for creating a Web site accommodate everyone from beginners to advanced users. And no matter where you fall in that spectrum, Value Web provides live help through a toll-free number 24 hours a day, seven days a week.

For Carnahan, a self-described Internet novice, the live help was invaluable. “Every single person was so nice. They didn’t make me feel stupid for not knowing,” she says.

For more information about the Value Web service, visit costco.com and click on “Services,” then on “Web Site Hosting & Design Tools,” or call toll-free 1-800-346-1543.—SEP