Business credit cards are your business’ livelihood. If you are a business owner, you understand the importance of a generous credit line to your business. Business cards not only allow you to take short-term loans, they also allow you to track and control spending.
The tax time is one of the most challenging times for small businesses. If you are not using a proper expense tracking system to track your costs, you are going to have a lot of headaches identifying your business costs. Business cards allow you to track your spending, and you can ask your card issuers to send you expense reports on a regular basis. Besides, using personal cards for business purchases and mixing your personal and business expenses could get you in trouble if you are sued by another entity.
In order to apply for a business credit card, you will need to have a formed business entity. In most cases, you are going to have to provide your employer identification number. Currently, Advanta is the only major credit card provider that does not require EIN for you to get approved. So make sure you register your business before filling out your application.
Business lines are not only useful for tracking purposes, but they also allow you to build you business credit history. That’s why you should avoid using your personal credit cards to make business purchases. The more you use your business card and pay your bills on time, the better business line you will have.
Card issuers are in business to make a profit. That’s why you should do your due diligence to make sure you are getting the right offer. You should compare APR, annual fee, grace period, and bonus structure of these cards to make sure you are getting the biggest bang for your buck. You should pay extra attention to miscellaneous fees.
Your business credit card is a powerful that allows you to not only build your credit history, but also deal with your vendors and partners. That’s why you need to make sure you get the card that provides you with the maximum flexibility to run your operations more smoothly. You should also pay extra attention to paying your bills on time. Your business reputation takes a big hit if you fail to make your payment on time. Your credit line is also affected by your track record, so it is important to take good care of your credit reputation.