Business Credit Cards
Business credit cards aren't just for big corporations. Small business owners and entrepreneurs are also eligible to receive these types of cards, as well as the perks that go with them. A big advantage to having a business card is the ability to separate your business charges from your personal purchases. There are other advantages to having a business card, such as the ability to:
Keep Track of Your Company Purchases
Many of the card issuers will provide you with a year-end statement, which summarizes your transactions by item and category. This makes year-end bookkeeping much easier.
Build Your Business Credit
Having a business card gives you the opportunity to build business credit. This is especially useful when you need capital for growing your company in the future
Earn Rewards on Your Purchases
Many creditors now offer discounts and reward programs for business cards. These are specifically tailored to small businesses and can help you lower your expenses on everything from office supplies to airline travel and hotel rooms.
Manage Employee Spending
If you have employees that need to make purchases for the business, extra employee cards come in handy. You can have a preset spending limit to control how much is charged on each card, but it's still a good idea to monitor the individual purchases. Luckily this is easy with online account access that allows you to monitor the activity on separate cards.
But, if you're uncomfortable giving employees' access to your main account, you might consider a prepaid card.
Applying for Business Credit Cards
If you don't yet have a credit card for your business, you need to realize that it may be tough to get one due to the recession.
Since creditors are becoming stricter with their lending criteria, you will need to make sure that your financial house is in order before you even apply. For small businesses, it may be easier to apply for a card through your local lending institution. Once you're approved for a business card, treat it as a privilege and manage it responsibly to protect your credit rating.
Related:
Choosing a Business Gas Card
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