Most mistakenly believe securing a loan or a line of credit from a bank is a lot easier than what it is. Getting any form of credit is tough at the best of times and if your credit history isn’t up to scratch, it’s a lot tougher. However, many business owners are now looking at a business credit card to help finance their small business and it could be a well thought-of idea.
The purpose of business credit cards is to really help establish credit for the business and ensure when money is tight the cards can be used sensibly. However, do you really know why you should consider a business credit card?
Zero Interest Intro Rates
Most credit cards offer some form of zero interest for new customers and this is something you need to look for. Now, you might not be aware of it but you can actually save a great deal of money within a year just by looking at zero interest introductory rates. This can be very beneficial to most businesses especially those just starting. You can easily make larger purchases without the need of handing over the entire amount of cash then and there.
Plenty of Bonuses for New Customers
A lot of the time, sign up bonuses are on offer and they can be great for most businesses. These can range from discounted flights, hotels, free travel even; and there is even the possibility of getting real cash back in hand. This is great because you need all the help you can but of course, you should only choose one card at a time and ensure it offers you the rewards you need. There is no point in choosing a card with bonuses you neither need nor want. There may be a spending cap however for certain rewards or bonuses.
Can Put Employees on Cards
You might not think this is a particularly good idea however some expenses need to be charged to the company. It is a lot easier for employees to have their own employee business credit card to use when certain things must be charged. This is not only going to reduce paperwork but make transactions a lot simpler also. Instead of employees paying for something and then filling out lots of paperwork later, they charge whatever is necessary to the card and that’s that! However you can still set limits for each card user.
Getting Rewarded For Buying
If you are setting up an office for the business and require certain office supplies you can actually see a wonderful return on this. There are lots of business credit cards which offer cash back on certain business expenses. This not only allows you to get all of your supplies but gives a little back to you as well.
The great thing about using a business credit card is simply down to the amount of help you can get. There are so many issues facing you at the end of the financial year and if you use a credit card, it can be a lot easier to deal with certain things. However, it will still be important to remember that all credit cards are dangerous when they are taken for granted.
Too many people believe the business credit card is the answer to all of their financial problems for their small business but it can add to the pressures if used incorrectly. That is why it is important to understand that while a lot of benefits come from using the cards, they can also turn against you when you misuse them.
Keep a Level Head
As you already know credit cards are easy things to rely on but the line of credit isn’t for stupid little unnecessary items, especially not when you use a business card. Use it for business expenses and that only, never charge personal items onto the card. Also, if you are going out for lunch don’t be tempted to charge the lunch to the card simply because it will all add up later. This is really only for business use.
Also, don’t opt for a credit card which doesn’t offer you good rewards. For instance, if you don’t travel for business or hardly ever leave the state, you don’t need a credit card with air miles. This is a useless card because you aren’t getting any benefits from it. Instead look for credit cards that offer reasonable interest rates and cash back bonuses.