Your business credit card is something which you will find yourself needing to use quite often. You’ll need to purchase office supplies, pay for business lunches in order to secure that new client or bit of business. Whatever you use your card for, having a business credit card can make doing business that much easier; as long as you use your card wisely.
Time and time again, business owners, especially small business owners and sole proprietors will be faced with the situation of having expenses to pay while they are waiting to be paid by clients. This is where your business credit card comes into play – it can cover the essentials when cash flow is not going the way you would prefer.
Buyer protection is available form some credit card providers; this is almost like having an additional warranty for equipment which is purchased using the card. Sometimes this is better than the warranty which is provided by the equipment manufacturer. If this is something offered by your business credit card, it may be preferable to use a business credit card to buy these sorts of items.
For instance, if your business just needs some computers and a file cabinet, you aren’t very likely to be offered favorable credit terms by office supply stores for these less expensive items, at least over the long term. Using your business credit card to purchase these items can save you a lot of money and spread out the payments, just as you would for larger purchases.
In your business, it is probably the case that your employees have varied job duties which they are responsible with each employee having their own expenses and most likely needing a company credit card to cover them. Using business credit cards here is a lot easier for your accounting purposes than is employing a petty cash system in your company, since all expenses can be found in one statement. By using business credit cards, you also eliminate a lot of the potential for expense account abuse.
Any business, large or small can establish a good credit history, as long as business credit cards are used judiciously – including, of course, always making timely payments. You businesses’ credit rating affects many aspects of doing business, including your rating from Dun & Bradstreet. Having a good company credit history can keep your company growing and moving forward to a brighter financial future.