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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
See Member Services Update, page 87,
for details on the Wallet Full of Savings
coupon offer for the Value Web services.