While business credit cards can be great tools for managing and keeping track of your business expenses, there are certain things you should avoid doing:
1. Don’t use a business credit card for personal expenses. When you use a business credit card only for business purchases, you will have separate records of expenses that you can use for recordkeeping and paying taxes. If you use the business card for personal purchases, you will create extra work for yourself or your accountant.
2. Don’t make late payments. It’s important to the future of your business that your business has a good credit record. Missing payments on your business credit card will damage your credit rating. Set up a system that will remind you when your bill is due.
3. Don’t charge more than you can afford. You may need to make large purchases for your business, but always have a plan for paying back the amount that you charge. Don’t buy anything with a business credit card if you don’t know how you are going to be able to pay for it. Don’t rely on luck or the hope that your business will grow more quickly than you can reasonably expect it to grow.
4. Don’t get a business credit card if you have maxed out your personal credit cards. If you already have more debt than you can handle, pay it down before taking on additional debt.
5. Don’t buy anything you don’t need. Plan your purchases. A business credit card should be used in a controlled way to grow your business. Don’t use the card for impulse buys. These unnecessary expenses can add up quickly and become a drag on the growth of your business.
Many of the same guidelines for the wise use of personal credit cards also apply to the wise use of business credit cards. If you are responsible with your payments and don’t buy items your business can’t afford, you will find that business credit cards are useful tools to help your business prosper.
To apply for funding for your small business, use the form on the right to begin the application process.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card