There is nothing worse in a small business than losing tract of your expenses. Even small expenses over a month’s time add up.
Keeping a daily journal takes your valuable time away from your business and puts it into boring administrative tasks.
The business credit card is the answer. It solves so many problems at once and more, your recordkeeping is done for you, automatically.
How to Get a Business Credit Card
There are many sources that will provide a business credit card.
These are banks, credit organizations (as American Express) and large companies that have private label cards.
Getting a card is easy today and fast. If you business is new and you have no sufficient credit history (or a damaged one), you can create a debit card.
The important thing in this case is to have a business card to;
Why Have A Business Credit Card?
Having a business credit card can accomplish much for the small to medium-sized business person. It will:
Maintain adequate records of all purchases.
Separate your personal charges from the business ones.
Make you and your business eligible for discounts and various promotional advantages.
Protect you from sales fraud (as your credit card purchase can be refunded at your demand if you deem to have been defrauded by an unscrupulous merchant)
Enhanced your credit standing if your card payments are always on time and correct.
Save you money, if you pay for your purchases in the 30 day payment cycle, you pay no interest.
Provide you group insurance options.
Which is the Best Business Credit Card?
This is an academic question, and depending on your own criteria you will be able to discover.
Some cards offer extended payment options, and if you are cash short, the extra credit is important. Some cards offer high over-draft limits, but are expensive.
Other cards, like the Amex, will be not a true credit card, but is a hybrid between credit and debit cards.
The company has many plans, but basically you are obliged to repay whatever you buy during the next month’s payment cycle, and this will be interest-free.
Some issuing banks have tailor-made programs for business credit cards, and thus you need to investigate carefully the options they provide.
Damaged Credit and the Business Credit Card
In today’s world of business and commerce, one’s credit rating is very important, and must be protected at all costs.
Your prompt and accurate repayment on your business credit card is all important. You cannot be too protective of your credit history.
In case your business starts doing poorly, you must NOT use your business credit card as a temporary lifeboat.
It will only damage your credit rating and history more if you business fails. These histories follow you, at least for a long enough period to be very harmful.
A business credit card can save you time and money if used correctly and can be a valuable asset to your company.