There are many advantages of having a credit card, either for personal use or for doing the necessary purchases of the daily running of your business. One thing you have to know though is that a normal credit card may not be the best option for making purchases that are meant for business purposes. So instead of using your personal card, get a card that is designed for business purchases to that you can get all the benefits thereof.
There are credit cards that are specifically designed for business owners. These types of cards make it possible to track purchases that are tax deductible. Most of the time they do come with other benefits that you would otherwise not enjoy from a regular personal card. If you want to apply for a business credit card, take these 9 tips with you in order to get the maximum benefits.
1. What kind of purchases do you intend to make?
First, determine the type of purchases you would be making with your card. For instance if you plan on buying costly tools for your business, go for a low interest business credit card where you can pay off the debt over a longer period of time. You can also deduct the interest accrued on the business income tax form.
2. Comparison shopping could save you a lot
Do a good comparison shopping before you sign up for a card. What should you look for? Pay attention to the interest rates, card maintenance fees and late payment fees, rewards and other benefits. Which of these would present the best value for your business?
3. Protection from fraudulent use is important
How well will the card be protected against fraudulent use? Do you plan on giving the card to other employees to use for purchases meant for the business? If yes, how well does the company protect your card from misuse?
4. Fringe benefits are important too
When you look at all the business credit card offers available to you, look for benefits you can use for your business. Travel discounts is a typical fringe benefit you can consider. This is especially true if you do travel a lot for your as part of the operation of your business.
5. Sometimes the grass is greener close to home
When you are ready to select a card, start from your local bank’s offers. Your bank may have some great business cards. Make sure you take advantage of this. Many business people do ignore this and go to the high street big bank when most of the time, there are better offers at their local bank.
6. Always use the business’ contact info on your applications
When you apply for the business credit card, provide the firm’s contact and financial information. If the business is a small local business, your personal financial information may be suitable. Ensure you have all the necessary legal documents ready before filling your application. These include your employer tax ID.
8. Monitor employees’ purchases too
If employees are going to be using the business credit card, ensure you track their usage of the card. You can do this using the online card management services provided by most credit card lenders.
9. Multiple applications are not recommended
It is advisable not to apply for multiple cards for your business. This will reflect poorly on your business’ credit profile. If you are denied on your first application, leave at least a 6 months gap before you make the next application.
If you take these tips with when you apply for a a business credit card, you should be able to get a good deal that will help your and your business greatly.