Business Credit Cards For The Money Minded
Business credit cards are an imperative part of any businesses financial well-being. Unless you are naturally very wealthy, a business credit card is extremely helpful in buying the things you need for your business while still being able to put food on the table for your family.
How do business cards work
Business cards work differently than regular credit cards. Although they are given out dependent on your credit, that is not the sole reasoning behind their distribution. Banks look at your business, its solvency, and other issues as to whether you are going to be able to pay back your debt.
What to use business cards for
Business cards can be used for almost anything. They are especially helpful for buying things pertaining to your business such as office supplies or building supplies. If you pay this off each month and stay on top of things a business credit card can be a great idea. Also, when it comes to tax time, if all of your purchases, including your gas, are on one or two credit cards, you can easily work this into your taxes and figure out your losses and gains as well as your write offs simply from your credit card statements. Your accountant will thank you also.
Things to avoid with business credit cards
Do not mix your personal and business credit card transactions. This can create horrendous tax and management problems. A business credit card tell the IRS you are serious about your business, mixing business with pleasure doesn’t show a great picture.
Do not apply for too many business cards. This is called card hopping and can cause a red flag. Choose one or two to apply for an go for those. Then, instead of applying online, go to the actual financial institution if possible. This helps you to build a relationship with your banker and down the line you might need some extra help that a banker you know might be able to help you with.
Tips for business cards
Make sure that is you give your employees business cards you put a spending limit on their cards and that you monitor their spending.Credit cards usually give a 21 day grace period. Do your best not to use. it. It won’t necessarily go against you, but it’s not the best habit for you either.
Make sure to pay online. Most banks charge you to pay at the teller and postage gets more expensive every day. Paying online is almost always free so make sure to utilize this arrangement.
Do not use cash advances. Cash advances carry exorbitant fees. Sometimes the interest rate can be 30 to 40 % if not higher. Instead, use your business debit card offers if you need extra cash. This will cost you less in the end.
A business credit card makes sense for anyone who is serious about their business. It shows those who are working with your that you are legitimate and serious about what it is you are doing.
Author’s Bio: The articles of Ethan Grunt have been proving very useful for the customers who look forward to get information on business credit cards. He suggests them to visit Businesscreditcards.com for further information.
Image Credit: 401(K) 2012