Business Credit Cards

Monday, June 11, 2012 at 3:57pm by Site Administrator

Why Should I get a Business Credit Card?


Paper transactions are becoming a thing of the past and wireless transactions are the wave of the future. There are many advantages to having a business credit card as long as you use it responsibly. There are hundreds of business credit cards to choose from, so the first step is to determine your needs and look for a credit card tailored for your particular line of business. Most business credit cards charge an annual fee so make sure the benefits you receive will outweigh the yearly expense of the card.


The Convenience of a Business Credit Card Simplifies Finances

There is nothing easier than paying with plastic. Many places of business refuse other types of payment including checks and cash. Without a business credit card, that means you have to make the payment with your personal credit card. It becomes time-consuming and confusing trying to separate business expenses from personal ones. A business credit card instantly eliminates the process. Business expenses are easier to track, budget and control when you know at a glance the amount you have spent and what you purchased.


Respect the Higher Line of Credit

Nearly all business credit cards offer larger lines of credit than personal credit cards. Business cards commonly offer a minimum limit of $50,000 and can climb much higher. The credit history of your company has a large impact on the amount of your line of credit. Keep in mind that even though your business may have a high credit limit, you need to use the card discretely to maintain your cash flow. The ability to put expenditures on a credit card while you wait for customers to remit payment helps keep cash flow in balance. A business credit card gives you the funds to restock and buy business supplies on a regular basis and pay for them after you receive payment from your customers.


Business Credit Cards Can Improve Your Business Credit Score

A credit card is easier for a business to get than traditional loans and reduces the amount of paperwork tremendously saving time, money and the environment. Conscientious use of a business credit card can quickly increase your credit score. To use a business credit card to your advantage, you must keep your account in good standing. Once the credit card helps establish a solid credit score, loans will be easier to get. You will get credit card offers for your business that are more attractive. Credit card companies will offer lower interest rates and fees because you have proven your business to be responsible and trustworthy.


The Flexibility of a Business Credit Card Allows Owners to Buy at the Best Prices

Unlike other methods of payment, nearly any company, in any country and at any time will accept a credit card. Credit card flexibility allows for last minute purchases by phone, mail or online. If a particular discount is available for a specific period, a credit card allows you to take advantage of it. Many business cards will issue cards to employees with pre-set spending limits. It is easy to see the purchase, date and amount of an employee’s transaction. A simple check of employee receipts against the credit card statement can alert a business owner of any improper or questionable employee spending.


A Business Credit Card Can Lower Bookkeeping Expenses

A business uses a lot of time and labor in bookkeeping expenses. Credit cards can assist in lowering those numbers. A business credit card automatically separates business expenses from personal ones by having a dedicated business card. Instead of separating all the expenses yourself, some credit cards separate expenses into separate categories for you. Many companies send businesses an annual expense report saving owners the trouble of digging through receipts at tax time.


Business Credit Card Perks are an Added Bonus

Do not consider a business credit card because it offer rewards, but if you can responsibly take advantage of credit cards, the rewards are useful benefits. Every card offers different rewards and it is up to you to choose one that is most beneficial to your business. Cash, statement credits, memberships, travel rewards, gift cards and discounts are a few of the numerous offers. Some business credit cards automatically provide car rental and travel insurance. Other cards allow a 30-to-60-day grace period on a business credit card. If you have plenty of cash flow, you can earn extra interest on your money by taking advantage of the extended grace period.

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