The number of home based and small businesses is growing at a staggering rate. It is no surprise that financial services targeting these businesses are also increasing, and becoming more readily available to smaller business owners. Credit lines and loans that in the past were not an option to the small business owner are being solicited by banks and creditors today. One product that is having a big impact is the business credit card.
Over 60% of all small businesses current use corporate cards and this number is increasing. It is now possible to apply for a business credit card [http://www.bankcardfinder.com/business/] from almost any major creditor, and many banks. There are cards for poor, average and excellent credit for businesses just as there are for individuals, so it is likely that if a small business has a bank account, it can get a credit card.
There are many powerful advantages that come with a business credit card, including:
Improved Credit Rating – Every business regardless of size benefits from a good credit score. This will open new avenues of financing, improved interest rates, and additional credibility in the marketplace. Business credit cards are a great way for new or small businesses to either begin a credit history, or repair past issues that may have occurred.
Control of Expenses – Many businesses require employees to make purchases in the field. This can lead to the management of petty cash, or burdensome daily allotments that require overseeing. These issues are mitigated by the use of business credit cards. The cards can all have limits placed on them, and every purchase is logged. Certain spending can even be disallowed before the card is used. This will allow managers to better record and repost their expenditures.
Tax Management – Business credit cards can help provide a single method of paying all business expenditures for home based businesses, as well as many small businesses. With a great deal of purchasing going over the Internet, it is more than likely that a businesses credit card will streamline any operation, and with the consolidation of expenditures comes easier reporting for the purposes of taxation
Managing Cash Flow – Cash flow is top of mind for any business, regardless of size. Even larger firms can feel the pinch at the end of the month if they didn’t plan well or if unexpected expenditures occurred. Business credit cards can help smooth over the rough edges at the end of the month, and serve as an emergency loan to get you though.
Credit Card Rewards – Many credit cards now offer rewards programs such as air miles, cash back, or other incentives. These programs can apply to business cards as well, and if a business owner is consolidating spending by using a credit card these rewards can add up fast. This is a great perk to take advantage of.
Smaller firms can be made to appear larger by using business credit cards. Buying a lunch for a client and using a business card can help to inspire confidence, and show your new client that your business has a solid foundation and is credit worthy.
Business credit cards are a truly valuable service to any size business, but for small and home based firms they can be a life saver. Credit cards of any kind must be managed carefully, and if they are handled badly they can bring more financial problems than they solve. Use care in managing your business credit card and grow your businesses faster!