Google Inc is introducing a credit to their commercial customers, and offers its customers a line of credit to try and collect a business competitive online advertising market heats up. Google offers a map to select U.S. customers, it requires a competitive interest rate, muchline of credit and no annual fee. Catch it can only be used to buy the world's No. 1 Internet search advertising search engine.
Google AdWords business credit card is the first step into the world of hardware manufacturers who sell financing popular IBM Corp. It enables marketers to spend more on its search ads, when the need arises.
Claire Johnson, vice president of global online sales of Google, said the credit was designed to help small and medium-sized businesses that advertise on Google, but they often do not have the money to support a large advertising campaign in front of a big season, as Halloween or Valentine's Day.
"They are resource-limited, and they are often strapped for cash. Many of them are trying to grow a business without a means to say your business is a classic," he said.
Consumer-oriented companies such as Amazon.com Inc., Macy, Inc. and offers credit card for years, buying a car, inspire customer loyalty and to monitor spending habits. Some of the dealers who own credit card operations, such as Nordstrom Inc. can also earn interest income.
Google offers an e-card invitations to some of its customers Wednesday. The card is initially available in "beta" test, which is available to selected users.
Credit control
Google makes 96% of its revenue from advertising, most of which comes from the small ads that appear alongside search results, known as AdWords. But the business is facing increasing competition in the hunt for his alliance between Microsoft Corp. and Yahoo Inc., as well as the social networking service Facebook, which is becoming increasingly popular with small and large advertisers.
AdWords MasterCard card, which will be issued by World Financial Capital Bank. Short% 8.99% per year old is a constant speed, no introductory rate, says Google.
Google keeps quiet, many other details, including minimum and maximum credit lines available (Google says that it is different from card holder) and the number of persons to whom the card is offered.
Google treasurer Brent Callinicos, said the credit card "statistically significant" number of people, because Google will explore how the results affect the availability of the customer card spending behavior.
"Although the (availability) is a shift towards smaller companies, of course, we want to cast the net wide NOK so that we can see what resonates, depending on their history month," said Callinicos.
Google considers the creditworthiness of the customer through a combination of internal efforts and with financial partners, he said.
Efforts to provide a credit card to a pile of money, as Google continues to grow, amounting to $ 39100000000 in cash and marketable securities of 30 As of June. Google does not pay dividends or participate in any ongoing repurchase program.
"Obviously, we have a strong balance sheet, so this is the way we use to help clients balance," Callinicos said.
But he stressed that the main motive was to provide credit card customers of Google in an economic environment where credit can be hard to get.
"This is not financial engineering that we came out and said it would be cool to do. This is the customer's needs," he said.
One popular perk is the ability to collect on Google credit card airline miles with purchases. But Callinicos says that he does not believe inaction will damage the card.
"I think if you had a choice of 18% versus the 8.99% credit card and miles of miles and no credit card, it's pretty easy choice," he said.
