Micro-businesses are another Frontier of Financial products and Business Solutions

Allen talks about Quickbooks Savings, Mercury Treasury, and Chase Business Reward Cards.

Hey there!

This year, I’m seeing one clear trend: Financial products for micro-businesses.

Micro businesses are entities with less than 10 people and generate less than $250k in revenue per year. Family businesses, solopreneuers, and most consulting businesses can fit this target.

In the beginning of the 2023, the offerings for micr-businesses were sparse. I would know - I was actively looking. Capitally intensive, or pitiful returns on cash (less than 1% in savings interest, why bother?).

Where individual personal finance products like Marcus (with their legendary 5.5% savings APY early this year) and Apple’s High Yield Savings at an easy 4% were winning our personal bank accounts, what was winning the microbusiness banking?

No one!

But I think that will change.

Here’s what I got for Microbusinesses:

Quickbooks is offering Business Bank Checking with 5% APY.

This got announced very recently, with 5% APY announced this week. Here’s why that’s game changing for micro businesses, solopreneurs, and family businesses.

1. It’s the first of it’s kind 5% high-yield interest account that doesn’t require a minimum of $250k capital contribution or commitment and has FDIC backing. Believe me, I’ve been looking.

2. Its combined with standard online business banking features (The Business Checking part) which gives you flexible payment options (invoice and get paid by credit card, apple pay, etc; transaction fees need to be considered)

3. It integrates with quickbooks, which is enough for any sub $1m or even sub $10m annual business.

Restriction: APY can change over time at will. Also while I could refer you, you’d get a better referral or partner deal by asking your bank or tax provider or even the next thing Im about to talk about!

Link to check it out.

Need a little more fire power and more maturity?

Mercury is offering Treasury Solutions giving your business a fast Invested Portfolio

Here’s why I love it too!

1. 5.47% annual returns based on your choice between a Vanguard or Morgan Stanley based portfolio

2. Can liquidate assets within and have funds available within 2 days (based on me getting it in 2 days)

3. Works great with Mercury’s existing business banking and you can set up auto-sweep features to pull excess cash sitting in your business bank and place it in the treasury portfolio (alternative is true as well).

Unfortunately you need to have account balances of $500k. If you’re interested in banking with Mercury (One of my preferred banks that I setup for clients, and even me), here’s my referral code. If you need a direct intro, I can also connect you with my account rep I’ve worked with across the portfolio.

Restriction: Only available to US Entities, or primarily US owned entities. Its crypto friendly.

Chase has 4 Business Rewards Credit Cards

For fans of points and Chase Sapphire Reserve program - Chase has a business equivalent, and it’s in its Golden Age.

• Ink Business Premier w/ $1k bonus cash after $10k spend in 3 months

• Ink Business Unlimited with $900 bonus cash (offered as points) after $6k in 3 months

• Ink Business Cash with $900 bonus cash (also points) after you spend $6k in 3 months

• Ink Business Preferred with 100k bonus points after $8k of spend in $3 months

If you can predict or incur $30k worth of business expenses (and/or personal), you can get all 4 signing bonuses in the year netting you a direct 350-400k worth of points. You can transfer those points out to Chase Sapphire Reserve for example, and use it to get some great travel in there.

The threshold to qualify is to have your own F-EIN and can anticipate enough expenses to qualify for each credit cards sign up bonus spending requirement.

Referral Link

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Side note:

Adam, Ray, Summer, and Tpan if you’re reading this, I literally wrote this thinking of you.