Business Credit Cards or Personal Cards, Which is Better?

Filed under: Credit Card Tips

As more people try to start up their own small businesses to survive the economic slump, credit card companies try to improve the features and functions of credit cards for business to attract more cardholders.  In the past years, business credit cards were only offered for larger corporations but today even small enterprisers and home based business owners have the opportunity to use them.

Some people may think that they don’t need to apply for a small business credit card since they already have their personal credit cards anyway.  However, if you are running a business, there are advantages to using small business credit cards.  Keep in mind that certain features are not available to personal credit cards.  In this article, let’s take a closer look at what the benefits are.

Advantages of Using Credit Cards for Small Business
First of all, opening a business credit card account enables the business owner to separate business from personal finances.  This is a crucial aspect especially as your company starts to grow.  If you’re going to use only one credit card all your expenses, it will be difficult to determine which among your purchases were made for business and which ones were made for personal purposes.  

Take note that as a small business owner, you are entitled to certain tax privileges.  When preparing to file your business taxes, you can simply check your monthly billing statements and yearly account summaries to determine which of your purchases are eligible for tax deductions.

Using a business credit card with your business name and logo can also enhance your company’s image.  As you use your credit card to cover for your business expenses, you are also building your company’s credit history.  After a year or two of consistent business credit card use and timely payment, a business owner has built good corporate credit which will surely improve future loan prospects.

By the time you need to apply for a business loan to expand your company or launch new projects, a solid corporate credit history can win you quick approval from banks or commercial lending companies.   Aside from easy approval of your loan application, you can also count on lower interest rates and better repayment terms on account of your impressive business credit rating.

Business owners who use business credit cards with reward programs can also enjoy incentives and exclusive privileges.  Business credit cards with Cash Back and Frequent Flier Miles Rewards are two of the most popular rewards.  Search the market for different credit card reward offers and choose the one that is best suited to your type of business.  

Another great advantage of using small business credit cards is convenient account management.  By using your credit card to purchase stocks or pay bills related to your business, you can easily keep track of your spending.  In fact, most business credit card issuers offer an online account access so you can download your credit card reports to your computer and use it along with your accounting software.

Article Source: http://www.articlesbase.com/small-business-articles/business-credit-cards-or-personal-cards-which-is-better-2899240.html

About the Author

Pamela Williams is a Loan Consultant, Internet Marketer, Writer and owner of BusinessCreditCardSite.com, a finance company Las Vegas Nevada providing support for businesses all across the US particularly with obtaining business credit cards. Visit www.BusinessCreditCardSite.com

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Business Credit Cards for Business Financing

Filed under: Credit Card Tips

Financing a business can be a challenge, especially if you only have limited funds in your account.  Most entrepreneurs seek out business loans or bank loans in order to finance their businesses.  Aside from traditional business loans, what other options do you have?  Where can you get additional assistance for your business financing purposes?  In this article, we’ll be talking about business credit cards and how they can help in shouldering your expenses and in building your business credit.

Small Business Credit Cards – Wonderful Financing Tools

You don’t have to be a big company to qualify for business credit cards.  Nowadays, credit card companies have issued cards that are especially designed to meet the needs of small business entrepreneurs or home based enterprisers.  Whether you own a small or big business, you can surely find a business credit card that suits your needs.

Can you apply for a credit card even if you’ve just started your business?  The answer is yes.  Even if you haven’t yet established a separate credit history for your company, credit card companies will still consider your application by taking a look at your personal credit.  If you have a good to excellent credit score, you can have an easier time getting approved for small business credit cards with the best deals.  

Nevertheless, if your personal credit score isn’t as impressive as you hoped it would be, you can still get approved for a secured business credit card.  Secured cards are particularly designed for entrepreneurs who have a problem with bad credit.  This business credit card is secured by submitting a certain amount of deposit to the card holder’s account.  In fact, you can use a secured business credit card to start building your business credit.

How can business credit cards help with your financing demands?  First, it frees up your available cash flow so you can save them for your basic expenses.  Having a business credit card also gives you the assurance that you have a reliable financial resource in case of unexpected or emergency expenses.  For start up businesses, credit cards are a great way to invest on the equipment you need without paying for them in cash.

Another advantage of using business credit cards is you can track your spending more conveniently.  Aside from the monthly statements of account sent by your credit card issuer, you can also use the quarterly and yearly account summaries as references to your bookkeeping and accounting tasks.  Many business credit cards provide downloadable account summaries which you can use along with your accounting software.  These references will prove to be invaluable especially in filing your business taxes.  By checking out the exact items you’ve purchases, you can easily determine which ones can be written off from your taxes.

As we’ve said, one of the most important uses of business credit cards is helping you build credit.  How can you build a strong business credit with the use of your credit card?  By staying within your credit limit, using your credit card exclusively for business purposes, paying off your balances in full each month and by promptly submitting your payments.

Article Source: http://www.articlesbase.com/small-business-articles/business-credit-cards-for-business-financing-3117318.html

About the Author

Pamela Williams is a Loan Consultant, Internet Marketer, Writer and owner of BusinessCreditCardSite.com, a finance company Las Vegas Nevada providing support for businesses all across the US particularly with obtaining business credit cards. Visit www.BusinessCreditCardSite.com

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Business Credit Cards

Filed under: Credit Card Tips

It’s vital for any business owner to keep personal and business finances separate. Whether you run a small company or you’re at the helm of a large public enterprise, it’s essential that you have dedicated financial resources for managing your business expenditure.

Business credit cards help company owners to control business cash flow, keep track of expenditure, and enable payments to be made anywhere in the world. They also reduce the need to carry large amounts of cash or to use cheques, which can significantly reduce the incidence of theft and fraud.

Explore the range of business credit cards offered by South Africa’s leading banks to find the one that is best suited to your company’s spending requirements. Alternatively, read on to discover more benefits, as well as tips on using a business credit card.

Why should I get a business credit card for my company?

Business credit cards have been designed to offer a convenient and safe payment solution for all company expenses. They effectively separate personal and business expenditure, and consolidate all business payments into a single monthly statement. This gives an instant, clear overview of what has been spent each month, and can also be used for tax and reporting purposes.

Having a business credit card also ensures that you, your business partners or your employees are able to pay for business-related expenses anywhere in South Africa or abroad. They enable business owners to track company spending, pay suppliers promptly and benefit from a range of value-added extras, such as interest-free periods, free travel insurance and loyalty benefits.

The latest chip and PIN technology also ensures that only employees who have been issued with the credit card’s PIN number can use the card. This makes it easier than ever to monitor spending, and also virtually eliminates the risk of fraud.

For many company owners, the most appealing benefit of business credit cards is that accommodation, flights and car rentals can be booked (and paid for) within a matter of minutes, and frequent flyer miles can provide significant cost savings. Some business credit cards even offer rewards for frequent spending, making them a far more attractive payment option than cash or cheques.

Tips for using business credit cards

Once you have a business credit card in your company’s possession, there are a few steps you can take to ensure that it is used as efficiently as possible:

  • Get the most out of the interest-free period: By making your purchases during the early part of your card statement cycle, you can avoid paying interest on purchases for as long as possible, often for up to 55 days. This applies as long as you settle your outstanding balance in full before your next payment is due. This could save your business significant amounts of interest each month, particularly if you are used to running your business from an overdraft. More importantly, your cash flow gets a boost, to the extent that you may even be able to get paid by your clients before you need to pay your card balance.
  • Use payment flexibility to your advantage: If the option is available on your business credit card, use the budget facility to repay larger purchases (for example a new laptop) in instalments to make business expenditure more manageable. Similarly, if you do have the option to revolve your balance, you can make large purchases and repay them on terms that are convenient to you, without complicated loan applications from your bank. Just ensure that you comply with minimum payment criteria, and that you are comfortable with the interest rate!
  • Apply for supplementary cards for other users: Many banks offer free supplementary business credit cards for another person (such as a business partner or employee), making it easier for them to spend on behalf of the company.  This is actually of benefit to you, because you will be able to see what’s been spent on your monthly statement, giving you greater control and visibility of your expenditure.
  • Choose a rewards credit card for your business, and earn valuable rewards for frequent spending, such as frequent flyer miles, discounts or shopping vouchers.  These rewards can add directly to your bottomline if they are used to off-set business or travel expenses.
  • Get the most out of your monthly statements: Look out for a business credit card that offers electronic statements, particularly if they include data files with all your transactions. These data files can be a very powerful tool, because they can usually be imported into software like Microsoft Excel and then further manipulated to provide you with detailed reporting and analysis of your expenditure patterns.
  • Choose your level of personal exposure: Business credit cards help you to establish your business’s credit history. By paying your outstanding balances promptly and in full, your company will earn a good credit reputation, making it easier and cheaper to secure commercial loans. Some banks offer different products to cater for your financial liability needs. In most cases, the business credit card will be issued to your business, and you will be required to submit financial statements and other business-related documentation. However, it might also be possible to get a business credit card issued to you in your personal capacity as the business owner. These cards are generally easier to apply for. Both options have advantages and disadvantages – so make sure you understand the differences!

Applying for a business credit card

Just like with personal credit cards, you can find, compare and sometimes even apply for business credit cards online.

Explore the range of South African business credit cards available, and then apply online for the credit card that best matches your business spending requirements.

Article Source: http://www.articlesbase.com/credit-articles/business-credit-cards-2638286.html

About the Author

Plastiq showcases a selection of South Africa’s leading business credit cards, and enables company owners to find and apply for the business credit card that best meets their company’s spending requirements.

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