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.

read more: The Positive and Negative Side of a Credit Cards for Business

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.

read more: New Business Credit Cards and Its Benefits

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