Small Business Credit Card Charges
Like every financial instrument, managing a small business credit card will go a long way in helping your business. But, mismanagement can destroy your business. This article deals with the benefits of having a small business card and the different ways to effectively manage it.
With interest rates changing constantly, the popularity of small business credit cards has increased twofold over the last couple of years. We have now entered the age of credit cards and rewards credit cards for small businesses. Even though new opportunities apply, credit debt will always be approached with some measure of caution. More than two thirds of the small businesses today use credit cards for their expenses, and only 40% of these businesses use business credit cards exclusively.
So, do you have a small business? What kind of credit should you use – a small business credit car or a personal card?
With prudent management skills and use, a small business credit card will be able to provide you with many benefits.
How a Small Business Credit Card can Benefit you?
- Avoid mixing – Mixing personal transaction with your business will create a lot of potential tax as well money management problems.
- Build business Credit – A small business credit card helps by providing every new business venture with the opportunity to build their business credit. This can be very helpful in the future if you plan on expanding your business and need the capital in the form of loans or credit lines.
- Easy Itemization – Tracking your annual business expenses can be one hell of a nightmare, especially if you are a small business owner. Most credit card companies send year-end statements that itemize and categorize your every transaction. So you no longer have to worry about all those receipts. A small business credit card will organize it all for you.
- Rewards and Discount Programs – The credit card and business market is highly competitive and has in turn led to the development of special reward and discount programs for people using small business credit cards. These rewards and discounts range travel packages to office supplies and even phone services or new software.
Tips for Small Business Credit Management
Here are a couple of tips for effectively managing your small business credit card:
- Apply from home – Always apply for a small business credit card from your current financial institution itself. If you have a good banking relationship, then it will help you get an approval. When you need a loan or a credit line, you will already have a good relationship established with your lender, which in turn will help with credit applications.
- Make use of grace – Most small business credit cards offer grace periods of 21 days or so before you make any payment on your purchases.
- Always make payments online – Save upon time and costs by simply paying for your small business credit card online instead of going to the teller at the bank or even mailing in your payments.
- Limit your card hopping habits – Signing for several different cards to get the best of deals will eventually have a negative effect on your credit rating, and managing your small business credit cards will be impossible.
- Avoid making late payments – High interest rates and late fees can erode any benefits that you will get by using your small business credit card. So, be responsible when making your monthly credit card payments.
- No cash advance – Reduce high interest costs and credit card fees by not using features like the cash advance one on your credit card. These cash advances bring in higher costs and more fees. If at all you require immediate funds, make use of your business account debit.
Remember that having ownership rights a small business credit card is indeed a privilege and by doing this you will be able to avoid any disastrous effects that would have resulted from mismanagement. Be responsible and you will enjoy years and years of profitable business growth.
Advantages of a small business
Now we are in the era of small business credit cards. With a small business credit card, your business and your employees can get advantages.
Heartland Data Breach Update
Small business owners with a merchant account should be sure that they are PCI Compliant to avoid any credit card processing fines from Visa or Mastercard. Here is a good video to help small merchants understand their risk.
A Stimulus Program Entrepreneurs Can Access
Free Six Months: Get paid faster with free credit card processing. Finding more ways to help small businesses get paid and maintain cash flow, Intuit is offering credit card processing services free for six months through Intuit.
Access Credit Lines Launches Website For Small Business Owners
Access Credit Lines has launched a Web site to acquaint small business owners and startups across the nation.
Business Opportunities – Take Credit Card Payments by iPhone!
ProcessAway is a charge card terminal for the iPhone and iPod Touch that uses the Authorize.net payment processing gateway. ProcessAway is your complete mobile processing solution for accepting credit card payments both in and out.
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February 4th, 2009 at 8:25 pm
[...] you have received your business credit cards, care and caution will be required. One thing for sure, you do not want to use these cards for [...]