Business Credit Cards
If you are trying to build good credit for a small business you may want to consider business cards. Sometimes it is easier to apply for a card than for a loan. A secured card is an option if you have bad credit. As you spend with business cards, you build separate credit history for your business.
Of course business cards require a security deposit consisting of cash from $300 to $1,000. This may determine your borrowing limit.
Monitoring spending by accessing your online account helps to keep the business books up to date. It is easy to access monthly and yearly account summary reports. It is also easy to follow business credit card usage by your employees or selected staff. Issuing a business credit card to an employee can help alleviate hassles in emergency expenses by making the process of funding easier.
It is good to do business card comparisons before applying and accepting a business card. Look for a reasonable rate of interest. Take special note to annual fees, penalty charges, transaction fees, and terms and conditions of each business credit card being researched. You do not want to get hit with surprises from the card’s company.
Also note the features that will be provided by the business credit card’s company. Some features worth investigating are online account access, zero liability fraud protection service, account summary reporting, employee credit cards, travel insurance, higher credit limit and reliable customer support. Think of the effectiveness of the business credit card toward your own company.
Keep in mind that there are business credit cards with reward programs that give entrepreneurs the opportunity to earn incentives from their spending. For example, there is the Frequent Flyer Mile Business Card which is great for business trips. Cash Back Rewards small business credit cards can earn you rebates and bonuses on your purchases as well as discounts from selected business-to-business merchants and establishments.
If you do decide that a business credit card is right for your business here are a few suggestions:
• Limit the number of your credit cards to avoid overspending.
• Make your payment before the due date, but take advantage of your grace period if your due date is missed so you don’t accrue interest rate charges from being overdue.
• Stay away from using business cards to withdraw cash. They are not covered by the grace period and it comes with a larger interest rate.
• Paying online is quick, easy, paperless, and you have your records readily available.
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If you are trying to build good business credit for a small business you may want to consider business credit cards. Sometimes it is easier to apply for a credit card than for a loan. http://www.corporatecreditconcepts.com/directory/business-credit-cards.html
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