According to a recent study conducted by the National Small Business Association, there is a considerable increase in the number of business owners who use business credit cards. In a related survey, an increase of more than 50% has been reported, comparing the years 2008 and 2009.
The rise in the number of business credit card users may have been brought about by the recent slump in the economy. In the past years, many business owners only use business loans to fund their expenses. Today however, acquiring an additional credit line is necessary to support the needs of a business, especially during times of crisis.
Many banks and commercial lenders have also tightened their qualifications in reviewing business loan applicants, particularly of small business loans. Recently, acquiring a business loan has become an even more difficult process than before. If you are a start-up business with no business credit history, acquiring a business loan can prove to be really tough.
Meanwhile, applying for a business credit card is technically easier. In fact, many start-up business owners have been able to begin their operations early with the help of business credit cards. They have been able to purchase the necessary equipment or buy supplies even while waiting for their business loan to get approved.
Credit cards for business are equipped with features that complement the needs of a business- be it a start-up, new, or an established business. For instance, business credit cards offer a much higher range of credit line than personal credit cards.
Users of business credit cards are also provided with monthly and yearly account reports so that expenses can be monitored effectively. There is also the option to give out supplementary cards to selected employee which makes the distribution of funds easier.
Another valuable service that can only be enjoyed by business credit cardholders is the credit reporting provision. Keep in mind that in order to build business credit history, regular payments need to be reported to the business credit trackers. Hence, it’s also important to make sure that your chosen business credit card will report your payments to the business credit bureaus.
Indeed, a business credit card may just be the perfect tool you need in financing your own small business. The advantages of owning a business credit card are definitely worth considering. If you have decided to acquire one, see to it that you will be able to manage your account responsibly to enjoy the most benefit and avoid the risks.
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Pamela Williams is a Loan Consultant, Internet Marketer and Writer. For years she had helped consumers and business owners especially regarding business credit cards. This resource is dedicated particularly on business credit card reviews, articles, tips and advice, and online application so that consumers and business owners may compare which is the best business credit card for their business. Copyright 2010 |
