Using a Business Credit Card for Business Financing

You can use a business credit card to buy office equipment such as computer, printer, copier, fax machine, etc. A business credit card can also be used to purchase supplies or to pay your office lease or commercial lease space. By charging these purchases to your credit card, you can have the chance to pay in installments rather than cash.

In fact, some business credit cards may offer zero percent introductory rate which means you can pay down your balances within the next few months without incurring interest rate. The introductory period can last for six 12 months or longer, depending on the issuer.

Using a small business credit card is also a great way to establish and build business credit history. However, you should choose a business credit card that will report your payments to a major business credit tracker like Dun & Bradstreet. Take note that not all credit cards advertised as business credit cards may offer credit reporting provision.

It’s also important to understand that credit reporting agencies for consumers are completely different from the business credit bureaus. To build a separate business credit history, you must register your business with a business credit tracker.

Another advantage of using a business credit card for payment is that all your transactions are recorded so that you can easily keep track of your business spending. Issuers of credit cards for small business also provide quarterly or annual report which can be used as accurate references in your yearly inventory or in preparing your business taxes. It would be easy to determine which of your expenses are qualified for tax credit or tax deductions based on your business credit card summary report.

There are also a number of business credit cards with varying reward programs. These reward programs are especially designed for businesses so that you can earn incentives and savings from your business spending. By choosing a reward credit card that fits your business’s demands, you can save a great deal of your working capital and enjoy exclusive perks and privileges as well.

Why is it Essential to Build Business Credit?

A business credit card is not a primary requirement in starting business. Nevertheless, it is surely a great tool that business owners can use to manage business finances. Some business owners might feel hesitant to apply for business credit card and decide to use a regular credit card instead. In this article, we enumerate some of the advantages of using a credit card designed especially for small business.

Separate business and personal finance. A business credit card is essential in separating business and personal finances. By using a business credit card for business-related expenses, it would be easier to keep track of your spending and make financial decisions for your company.

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Important Points About Business Credit Cards

It is true that using credit cards for business brings many advantages especially for new or start-up businesses. First, it is a great tool to build your business credit history with. Second, it enables the business owner to separate business from personal finances. In addition, special features and functions that only business credit cards offer can help an entrepreneur in managing business finances more easily.

Nevertheless, the risk of bad credit looms for those who cannot manage their accounts correctly. Based upon experiences, some business owners found themselves stuck in bad debt as a result of poor credit card management. How can this be avoided? Let’s discuss some important pointers for business credit card holders:

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Important Facts About Business Credit Card

Changes made to the credit CARD law are only applicable to personal credit cards. For business credit cards, most of the provisions do not apply. For this reason, business owners who use business credit cards are advised to be more careful on how they use and manage their credit card accounts.

In this post, let’s talk about the basic facts that owners of business credit cards or those who plan to get one must understand. First, let’s talk about the risks and then we will consider the advantages.

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The Positive and Negative Side of a Credit Cards for Business

If you are a small business owner, perhaps you may be considering the possibility of using business credit cards to finance your company. Some entrepreneurs may recommend business credit cards while others may say that it’s completely unnecessary. So, how would you know whether or not it’s suitable for your own business?

In this post, we present the pros and cons of using credit cards for business to give you a better insight on the issue.

The Pros Of Business Credit Cards

Ease of application. Undoubtedly, it is much easier to apply for a business credit card than to acquire a loan. Application can be done online and approval usually takes just a few minutes. The criteria of eligibility are not as strict as compared to business loans. In fact, you can instantly get approved even if you are a new or start-up business if you have impressive personal credit history. On the other hand, if you have poor credit, a secured business credit card is always an option.

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Take a Look at Secured and Unsecured Business Credit Card

Having good credit history is certainly an advantage when applying for new credit. The same thing is true for business owners who want to obtain a business credit card. There are actually two types of credit cards for business – Secured and Unsecured Business Credit Card. In this post, we will discuss what each of these business credit cards have to offer and how you can choose the right one for you.

The Non-secured Small Business Credit Card

Any small business with good personal credit can easily get approved for a business credit card. Even if you have just started up your company and have yet to build business credit, getting approved should not be a problem. In fact, using a business credit card is a great way to build your corporate credit as long as you pay your balances on time.

read more: Take a Look at Secured and Unsecured Business Credit Card

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New Business Credit Cards and Its Benefits

If you are a new business owner or you have plans to start your own business, this article presents benefits that using a business credit card can bring you.

Detailed report. Apart from the statement of account sent at the end of each month, you will also receive a yearly account summary report from your business credit card company. The report will contain the details of all credit card transactions made for the previous year including the date the purchase was made, the type of purchase, the amount of charge, etc. You can use this summary as an accurate reference when preparing your business tax forms so it would be easy to distinguish which among your business expenses qualify for tax credit or tax deductions.

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