If you manage a small business using credit cards can have several advantages that help add value to the business. Credit cards must be managed properly to take full advantage of their benefits. They provide convenience and flexibility while at the same time allowing you to build a good credit profile for the business, which can help when other financing options are needed.
A good credit profile will help when it come to doing business with other companies or landing that next government contract. The people you deal with will see your business as a good risk because of the good credit profile.
Managing small business credit cards is not that much different than managing your personnel credit cards. The business manager needs to be careful not to get over extended. Always try to keep the balances paid off on a monthly basis, or as low as possible to minimize the interest, and never ever make a late payment. The balance owed and late payments are what show up in the credit profile.
Companies that register with Dunn and Bradstreet will have what is known as a paydex score. This is an indicator of how well your business does paying it bills on time. In other wards the paydex score tells other businesses if your company is a good risk for doing business or is your company slow at paying its creditors. With small business credit cards you can build a good credit profile that will pay big dividends in many ways and add value to the business.
There are many credit cards available and shopping for the ones with the best features for your business is an important part of managing this type of credit. There are fixed rate cards, variable rate cards, reward cards, cash back cards, and many more. Finding the ones that will provide the best service for your business might take a little effort but it is worth it.
Some cards provide discounts for travel, including hotel and car rental while others build up reward points. What ever the deal being offered make sure you evaluate it carefully for any hidden gimmicks or tricks that will end up costing you. Also read the fine print regarding interest rates, sometime the interest rate can be raised for the slightest reasons or no reason at all. Another area to investigate is if the card provides warranties on products and insurance for travel and car rentals these are valuable benefits that are often over looked. Again, when carefully managed credit cards can be a great advantage to small businesses and add value in numerous ways.