3 Ways to Build Business Credit Properly

Many small businesses could benefit from having extra capital available to free up their cashflow, but unfortunately most will never know that they can establish and build business credit for their business without using their personal credit.

There are 3 critical things that any small business can do to make sure they are building business credit.

Don't apply for credit cards that say they are business credit cards, if the application asks for your personal information such as your social security number. This is a dead give-away that it's a personal credit card in disguise as a business credit card.

Prepare Your Company's Documents

Make sure your small business is setup properly from the beginning. That means having your articles of corporation filed properly with the secretary of state in the state you do business in, as well as filing with the IRS for a Tax ID number (sometimes called an EIN number). These pieces of information are critical to filling out a true business credit application.

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How To Find A Good Business Credit Card

by Joseph Kenny

Business credit cards can be a real asset to any business. They enable a business to carry on a number of its financial functions with greater ease and can certainly bring some savings along with it - if you get the right credit card. Here are a few tips on how to select the card that would be best for your business.

The first thing you want to consider when choosing your business credit card is what do you primarily use it for - what kind of purchases will mostly be charged to the credit card? The variety of types of cards will enable you and your business to get sizable savings if you get the right one. If your company is looking for a card that your company representatives or executives can use, then you may want to get an air miles credit card - if air travel is required by most of your agents. Or, possibly a gas credit card if vehicles are heavily used on a regular basis.

After you select a type of card, you want to start looking at the various features. One of the most important ones is the interest. Some business credit cards now do not have any interest rate. Typically, the card will usually not have an introductory offer period, and there is an annual fee on the card that could be as high as about $180. This fee usually will not be charged for the first year. Otherwise, where there is interest charged, you will want to get the lowest possible since that is what you will be paying if you leave any balance on the card.

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How to Find the Best Business Credit Cards

by: Steve Faber

Credit is vital to make almost any business operate at peak efficiency. Credit works as financial lubrication to maximize growth and allow for seasonal fluctuations in business. The largest category of business credit is the credit card. These are used by almost all businesses, and can be a vital step in building business credit to the point where a principal or owner's personal guarantee is no longer required for credit such as vehicle leases, inventory, or equipment financing.

Finding the best business credit card requires a careful analysis of your specific business requirements. What are you going to be using your credit cards for? If a majority of the card's use will be for travel, choosing a card that has rewards and discounts that can be applied to offset travel expenses and get discounts from hotels, air carriers and car rental companies.

If you will be using your business' card for recurring expenses such as office supplies and fuel, a rewards card that gives vendor discounts and supplier rewards can be a good choice. Many business supply firms, oil companies, and vehicle manufacturers offer cards with rewards that can be redeemed for their merchandise.

What ever special benefits your credit card may confer to the user, the first step is to make sure the basics are covered. The best business credit card for you should have a low interest rate, attractive fee structure, and good customer service. If the basics aren't in place, the other details aren't nearly as important.

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Find the best out of your Business Credit Cards

Maximize the great advantage of business credit cards. Find out how your business can benefit from the flexibility and conveniences that business credit cards bring.

Not proper use of business credit card will result to bad credit, but if you know how to handle your credit card responsibly, then definitely you and your business can avail the great benefits a business credit card offers.

Here are the advantages of small business credit cards and how you can use them to their full potential:

Keeps Your Cash Flow Steady. Sometimes your petty cash isn’t enough to cover for everything like for unexpected expenses, charge them on your card and pay at a later time. Having a business credit card on hand is indispensable. Make sure that you can pay back your charges on time because a business credit card covers some of your operating costs.

Build-up Your Business Credit. Building good credit and maintaining an excellent credit status depends on your timelines of submitting your credit card payments. Also, pay attention on how much of your credit limit is used. Ideally, to keep a high credit score, you should not exceed more than 50% of your allotted credit.

Track Your Business Spending. Use of business accounting software isn’t enough; business credit card is another way to easily monitor your accounts. Use you monthly, quarterly and yearly account summaries from your credit card company as references to your accounting particularly when filing your business taxes.

Get rewarded from your credit card spending. Choose from a wide variety of credit card rewards programs that are especially created to meet your business needs. By choosing a business reward credit card that complements your business’s spending, you can certainly get more from a reward business credit card.

Separating Your Business Finances from your Personal Money

Separating Your Business Finances from your personal expenses is a challenge. In this article, it's all about the advantages of using business credit cards for your business expenses.

Still today, many small business owners and home based business entrepreneurs prefer to use their personal credit cards with their business expenses thinking that it makes no difference. But a wise business owner should think about the long term complications that combining personal and business funds in just one account could cause later on.

At the start, you may find that using your personal credit card is enough. But as your business begins to grow and accumulate expenses, having a separate business account is indispensable. It will make a big difference not only in managing your business finances, but also in making finance-related decisions.

All your expenses are automatically included in your summary of accounts so you can be assured that you won’t miss a single purchase no matter how big or small that purchase was. You will be provided with monthly billing statements, along with quarterly and yearly summaries of your account. Purchases are categorized so you can use it as reference to your bookkeeping and accounting tasks. Filing your business taxes is definitely made easier with the help of business credit card account statements.

It has an option to access your account online. This is an enormous help for a busy business owner as it enables convenient tracking of business accounts at any time. Account summaries are also downloadable so you can use them along with your accounting software.

Getting a business credit card is to build a separate credit history for your business. By using your business credit card and keeping up with your payments on time, you can be assured that you will be building excellent credit history for your company. You may not need financial assistance at the moment but by the time you need to apply for a business loan to help you with your business projects, having a solid business credit history will help you secure an approval more easily. Aside form getting easy approval with your applications, having excellent business credit also guarantees that you’ll be offered better rates and terms by lenders.

In summary, getting a credit card for business is beneficial in two ways- for separating personal from business finances and for building up a separate credit history for your business. If you’re a business owner or planning on starting up a business of your own, this matter is definitely worth the thought.

Get to know Zero APR business credit cards

If you have a business, you should certainly be interested to know what is a Zero APR Business Credit Cards. This provides you basic knowledge on what you need to know about a Zero APR Business Credit Cards.

Business Credit Cards with 0 APR is similar to regular balance transfer credit cards. This kind of business credit card will help you get out from under your debts more quickly and easily especially if you do have a multiple business credit cards and is are trying to keep up with your existing balances with each card. It doesn’t impose an interest rate on the balances you transferred over. In this way, you can focus on paying off your credit card debts without worrying about the additional interest rate payments. But this offer is only for a limited time period.

How long shall it last? Check how much the interest rate will be after the introductory period ends. Make sure you weigh all the fees involved and it must be reasonable. Most important, understand business credit card terms and conditions, if not, you may end up with the wrong kind of business credit card in your hands. It is your responsibility to examine your chosen business credit card thoroughly by reading and understanding the agreement.

There are lots of business credit cards in the market and each one of them has different usage for a different type of business. Comparing them through a business credit card reviews helps you identify what kind of card suits your business.


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Track Your Business Expenses Efficiently using a Business Credit Cards

One of the advantages of a business credit card is to help a business manage its finances more efficiently. Tracking business expenses is truly challenging. Inventory and accounting involves a lot of work. But this can be done much simpler with the help of business credit cards.

Most business credit card companies provide an online account access to credit card user to enable to check the status anytime. Monthly billing along with quarterly and yearly summaries of account is regularly mailed. Account summaries are indispensable tools when doing accounting and bookkeeping tasks. Most importantly, account summaries are a wonderful reference when filing taxes. By checking it, items are easily identified whether qualified for tax exemptions.

One great feature of a business credit card is the option to distribute extension credit cards to employees. All the purchases that made by an employee can be tracked through the account statement. Owner can keep track whether the cards used accordingly.

Business credit cards enables a business establish a separate business credit history for the company. By using a business credit card, keeping within a given credit limit, and staying true to payment obligations, building an excellent credit history for the company can be a lot easier. Most importantly, in order for a business credit to be recorded, it needs to register to a business credit reporting agency like D&B and Experian.

Lastly, a business credit card separates business funds from personal money. This is a crucial factor especially when a business begins to grow and as expenses start to multiply and mount up. A separate business account helps see exactly how much the budget is and thus, will enable to make business decisions more effectively.

Proper usages of a business credit card keep from a credit card debt which can cause problems to a business. Make sure that business credit card is strictly for business expenses only. Business credit card should be a tool to help businesses and mustn’t be used for personal whims.

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What's in a Business Credit Profile?

A business credit history plays a big role in the success of your business. You may already be aware of the contents of your credit history and why it is important for you to keep your credit in excellent level. In this article, we'll be discussing more about your business credit profile and what you can do to keep it good standing.

Establishing Your Business Credit History
What every business owner starting up a business must first do is establish a separate credit history for the business. This can be accomplished by applying for a tax ID number or a D-U-N-S number from Dun&Bradstreet. D&B is a credit reporting agency that exclusively caters to businesses. Experian is another credit reporting agency that services both individuals and business.

Applying for a business credit card is another way to build up your business credit.
As you use your business credit card for your business purchases, you also continue to build your credit one step at a time. As long as you keep your credit card payments on time and you stay within your credit limit, you will be building a strong foundation for your business credit.

The Importance of Your Business Credit
Just like with your personal credit history, your business credit determines whether future lenders, insurers, and potential investors you’ll be dealing with will have the confidence to give you credit. In short, your creditworthiness depends on what is reflected on your business credit report. Perhaps, as you’ve just started with the business, you may not need to apply for a loan at this time. However, as your business to expand, you’ll find that having an excellent business credit history is invaluable in getting the loans you need. If you’re a business owner, one of your primary goals should be to establish and maintain excellent credit.

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Effective Small Business Credit Card Management

Small business credit card is a good way of building your business credit. Proper management of the small business credit card will turn to an effective business tool to help small business owners grow their businesses. It also strengthen your credit standing, thus it is very useful for additional financing for growth or expansion purposes. Misuse of your business credit card has the potential to destroy your business and dreams. Follow these small business credit card tips to effectively manage your credit.

Avoid missed or late payments
Be responsible for your monthly business credit card payments. Failure to comply the payments can leaves you vulnerable to higher interest, costly fees and a blemish on your credit record.

Use Grace
Small business credit cards offer a 21-day grace period before you have to make payment on your purchases. Improve your cash flow using a credit card instead of checks and also, by maximizing your grace.

Pay your bill online
Paying online through business credit card companies website can saves time and avoid the extra costs normally incurred when making use of other modes of payment. It is a secured website and they ensure that your payments will not be subject to delays.

Limit Card Hopping
Truly when signing to multiple business credit cards gives you advantages on deals but it has a negative impact on your credit rating and managing you accounts can be difficult.

Apply at Home
Always consider applying for your small business credit card at your existing financial institution. This way, you can establish good relationship for the easy approval for other process.

No Cash Advance
Always keep in mind that by not using cash advance feature on your card can reduce credit card fees and interest costs.

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What is Business Credit Cards?

Financial is one of the important parts of the business. Whether it is a start-up business or an established business, business credit cards can be an aid in building business credit. As your business grows, you will need a helping hand to manage your business expenses and income. Using a business credit card separates your personal accounts from your business accounts. Most importantly, using business credit cards is the quickest and easiest way to obtain credit.

Why Business Credit Cards?

Here are some of the benefits why you should apply for a business credit card. First reason is because of Interest-free credit. Using business credit cards, your business can take advantage of interest-free credit for a limited period.

Separation of expenses is the second reason why you should apply for a business credit card. For business, handling expenses is a difficult task. For example, how many times you've had to pay for a business dinner on your personal credit card if you need evidence of that.

Third, Expense managed report. With this, it allows you to get periodic reports of any section your business expenses. In this case, your accounting department no longer has to manually account for all your business expenses as the card comes with itemized monthly statements.

Fourth, it is because of Staff cardholders. Your staff can have each business credit card, so that they can meet their business expenses without having to pay for them personally.

Next, the Online payments. You can pay quickly and easily all your business expenses online. In this way, it helps save your accounting team plenty of time and effort.

Sixth, it is because of Insurance. With the use of business credit cards to pay for any business travel expenses of your staff members, they should not only get free travel insurance but also any other travel benefits that are associated with the card. In this way, it saves your business the expense of having to pay for the insurance separately.

The seventh reason is because of Higher credit line. Some credit card companies are willing to give business credit cardholders a higher level of credit than individuals. This should mean that your business never needs worry about how to pay for entertainment, stationary or travel expenses again.

Eight reasons are because of Rewards. Avail rewards packages with the use of your business credit card e.g. air miles, cash back, etc.

Next reason is because of Hotels. As a member of a business card program you may find that the card issuer has a special relationship with a hotel that gives you preferential bookings at hotels close to where you need to be - so no more long travel journeys from hotels to meetings.

Finally, it is because of Billing. With business credit cards billing, you may have an option whether to pay the entire balance each month or carryover a balance to the next statement period, as suits your business needs, much the same way individual credit cards do.