With a tight credit market, business loans can be tough to obtain, which can make it challenging for a small business owner to hold onto cash while still buying supplies, inventory, and equipment to grow his business. But that’s just one of the ways that a business credit card can help. Let’s look at a few others.
• Build credit. If you use only your personal credit card for supplies and inventory, how will you build your business credit. Building a business credit history is important if you decide you want to expand your business down the road.
• Track expenses. A credit card for your business enables you to track your business spending. Not only is this beneficial for monitoring your cash flow and your budget, but it aids you in taking full advantage of all eligible deductions for tax purposes.
• Business perks. Many business credit cards offer perks. These can include mileage accumulation or hotel points for travel expenses or even cash back rewards. In fact, there are such a variety of business credit card reward programs, that you can find one that is most complimentary to your business.
• Higher credit limits. A business credit card typically has a much higher credit limit than a personal credit card. This is particularly important if you need to make a large capital expenditure.
• Boost credit rating. By using your credit card for your business responsibly — that is, by making payments on time or paying off balances in full — you can boost your business credit rating in no time.
• Monitor employee spending. Having your employees use business credit cards helps you to control employee spending, especially if you set limits on their spending.
Keep in mind that the use of business credit cards is not unlike using a personal credit card. The same caveats and warnings hold true: you must be responsible with your business spending just as you would with your personal spending.
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