One of the first things that should you do upon starting a business is to apply for a small business credit card. Since your business doesn’t have its own credit history, the credit card issuer will use your credit record in order to issue your first card. Don’t worry, even if you have bad credit, you’ll likely be able to get a small business credit card although it might have a lower limit and a higher interest rate. As you use it and pay it off on time each month, you’ll be building credit for your business, be able to get a higher limit and lower interest rate and make it easier to get a small business line of credit.
Business Expenses Simplified
Another benefit of using a business credit card is that it keeps your personal and business finances separate. When it comes time to figure out your profit and loss statements, you don’t want to spend hours combing through your credit card statements trying to remember which purchases were made for home and which ones were for business expenses. If you use your card for all purchases, instead of cash or check, you’ll have an accurate record of transactions and won’t have to worry about losing receipts. This will make tax time a breeze.
Once your business grows and you take on employees you’ll be able to eliminate the need for them to file expense reports and wait to be reimbursed for travel- or business-related purchases they make. Simply add them onto the business account and they’ll get their own card to use whenever they need. You’ll still receive the statements so that you can see if any abuse it taking place and your team will be happy to not have to pay for work-related expenses out of pocket.
Earn Reward Points
One last perk of having a small business credit card is that you’ll be able to rack up rewards points to use to treat clients to dinner, buy employee appreciation gifts or pay for travel expenses. Most cards come with concierge services as well. Use your time to generate more income and let someone else take care of making your flight or dinner arrangements.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card