Business Credit Cards For Business Owners
The ten most important points about credit cards.
With the variety of business credit card programs available, anyone with decent credit should
seriously consider one. Though intended primarily for small business owners, the offers combine every kind of
credit card contract.
Business credit cards are available with zero introductory interest rate, low
APR, , rewards (like airline miles or cash back), balance transfer options, and so on. Business cards offer travel
discounts on travel, cars, insurance, frequent flyer miles, restaurant savings and even hotels.
If you have a somewhat better credit history, business card contracts are usually offered at comparatively lower
interest rates and much higher credit limits. Since business owners generally spend more and tend to
maintain a higher balance, issuers are eager to offer superior benefits.
They're convenient for small or large expenditures, whether stationery supplies or office
furniture. Gone is the need to maintain a petty cash account.
And every business owner has seen the day when emergencies arise that present the need for unexpected additional
funds. It's times such as those when those high credit limits come in handy.
Quarterly or annual reports that categorize expenses are provided free of charge by nearly
all issuers. This helps manage cash flow and makes it easier to track tax deductible items.
They help around tax filing time, when you need to total those items. They also help separate business from
personal expenses.
Since issuers are eager to do business with other businesses, the customer service associated with such cards is
usually superior. Different 800 numbers from those offered consumers are available and the person on the other end
is often more eager to assist.
Business credit cards can be issued to more than one individual. The business owner, or authorized
representative, can specify an unlimited number of additional card bearers, who receive a different account number.
This makes tracking expenditures by different employees easier.
It also makes abuse easier to detect. Terminating one account is as easy as a phone call and your primary
account remains active and unaffected.
Of course, as the primary account holder, you are still held responsible for any charges made. One way to deal
with this unfortunate, but all too common, issue is to use pre-paid cards.
Pre-paid cards allow you to load a card with a specified amount of funds, which automatically
caps the amount for which you can be liable.
For businesses that experience lag in accounts receivable (and who doesn't?),
business
credit cards can help smooth out cash flow bumps. Pay now with the card, invoice the client, and you'll be better
able to time paying your expenses when your clients pay you.
Every major financial institution offers several programs. Everything from Platinum cards to Debit cards are
offered, usually with the same low rate and no annual charge.
And here's the catch — which for once is in your favor. Anyone can consider him or herself a business owner. No
special proof (such as a business license) is required.
Most programs are available through the issuers' web sites. You fill out the form, a credit check is performed
by an automated computer system, and you receive an answer within seconds.
For a business owner with a thousand things more to do than time to do them, it doesn't get better than
that.
|