A Business Credit Card Lends Your Business Legitimacy

Category: Finance, Credit.

There are lots of good reasons that you should have a credit card specifically for the use of your business, in the name of your business. Here s a list of the top ten reasons that you should have a business credit card.

A lot of them are no different than the reasons that you have a credit card for yourself. A business credit card lends your business legitimacy. It s far easier to track monthly expenses with a credit card. The fact that a credit card company issues a credit card to your business signals other merchants that they consider your business credit- worthy. When you make purchases for your business on credit, you have your monthly account statements to help you track where the money went. Your employees can use your business account to make purchases for the company, or for business expenses when traveling for your company, making it far easier to track and assign expenses than having expense accounts submitted and reimbursed. Your monthly account statements also serve as a backup to receipts when it s time to do your own books and declare income and losses for tax purposes.

Many business cards offer the same benefits and rewards as personal credit cards, including discounts on products for your business and cash back or rewards on purchases from participating merchants. If something goes wrong with your purchase, and the merchant won t return your money, you can dispute the charge on your account. Purchases made on many cards qualify for special insurance protections from the credit card company. A business credit card allows you to build a positive credit history for your business. Being able to charge your purchases can often allow you to take advantage of cash discounts on purchases. This will be a major benefit if you re seeking a line of credit or loan to expand your business in the future.

Many companies that deal with business to business products offer special terms when products are paid for in full at the time of purchase or within 30, 60 or 90 days. For all the to- do about high rates of interest on credit cards, they re generally considerably lower than merchant credit accounts. Charging them to your business credit card nearly always counts as a cash purchase rather than a financed one. In fact, you can avoid interest altogether by paying off your account each month. In short, having a business credit card makes excellent sense for your business. If you must carry a balance, it makes sense, though to carry it at the lowest interest rate that you can find- and even earn rewards or discounts while you re at it. 1 Use business credit card rewards for business expenses such as travel and lodging on business trips.

If you re considering applying for business credit, you can find everything you need to compare credit card offers at some really great comparison sites. From comparison charts that let you see card features side by side to informative advice about credit cards, mthey can help, debt and financing you find the best credit cards for yourself and your business.

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