Build Solid Corporate Credit
For a new business, establishing corporate credit history is crucial and has to be accomplished right away. Without corporate credit, it would be more difficult to convince potential lenders to provide financing for the company.

Being the business owner, your personal credit history will closely examined by the business credit card company when you apply for an account. If you have an impressive personal credit rating, you can quickly get approved quickly and receive your business credit card within a few days. However, for entrepreneurs who have a problem with their credit rating, a secured business credit card is the next viable option.

See to it that your chosen business credit card issuer will report your payments to Dun & Bradstreet- the leading business credit tracker, as it is the only way to build corporate credit. It is important to understand that consumer reporting agencies are different from business credit bureaus. After a year or two, you should have already built a business credit history that will give you more confidence in seeking out loan options.

Effective Administrative Task Management
How can you use a business credit card to make administrative tasks more manageable? A lot of business credit card issuers provide an Online Account Access feature so you can monitor your account straight from your computer at any time.

If have employees, you can also distribute supplementary cards to a selected few so they can simply charge small business expenses to the account, without having to go through the time-consuming process of filing for cash request. Each card will be linked to your business credit card account so the you will still be able to monitor employee spending.

Accurate References for Accounting

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Aside from monthly billing statements, you will also receive an annual summary report from your business credit card company. The summary contains a detailed report of all your credit card transactions for the whole year, including the date the purchase was made, the type of purchase, the amount rendered, and other useful data, which is why they make indispensable references in performing inventory or accounting tasks.

Come tax season, the account summary can be used as reference so you can easily determine which purchases are qualified for tax deductions. Usually, the report can be downloaded online so it can be used together with the accounting software (ex. Quickbooks) that the business owner uses.

Small Business Credit Cards – Wonderful Financing Tools
Even if you are managing a home business or a small enterprise, you can still qualify for a business credit card. Today, credit card companies have introduced credit cards that are especially designed for small businesses.

What are the benefits of using a business credit card? First, you don’t have to spend cash all the time to cover for your expenses. In case you need to pay for something or purchase an item in a hurry, yet you don’t have cash on hand, you can charge the costs to your credit card and pay it back by the end of the month or by your card’s due date of payment.

Business credit cards also enable you to keep track of your spending more conveniently. Once approved, you will be sent monthly billing statements so you can review your purchases for the previous month. You can also log-in to your account online to monitor your expenses. Quarterly and yearly account summaries can also be downloaded from the website so you can use it with the accounting software you use.

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Applying for A Business Credit Card
What if you have just started your company? Can you still acquire a small business credit card? The answer is yes. In fact, you can easily get approved for one despite not having business credit card. Yes, you can use your business credit card to build your business credit history.

Nevertheless, your personal credit history will be reviewed once you submit a business credit card application. Of course, if you have an impressive credit rating, you can surely get easily approval and the lowest rates as well.

What about secured business credit cards? These credit cards for business are recommended for business owners who have a problem with their credit rating. As with a personal secured credit card, a secured business card will also require the submission of cash deposit as a guarantee for your debts. If you have good credit, you can open a regular business credit card without submitting cash deposit.

As you use your business credit card for important purchases, you are building your business credit. However, take note that not all issuers of business credit cards provide credit reporting service. To build business credit, you must make sure that your chosen credit card for small business will report your payments to major business credit report trackers.

Comparing Small Business Credit Cards
Unlike corporate cards, the application process for a small business credit card is much simpler. If you’re a business owner, you can easily fill out an online application and wait for a few minutes to receive approval. You can also compare different small business credit cards by reading online reviews and checking out comparison websites.

As with a personal credit card, the rate of interest is a primary factor to consider. Of course, you should look for a business credit card that offers a reasonable APR. However, a low APR does not guarantee a really good credit card. Aside from a reasonable rate, be sure to evaluate the rest of the fees (annual fee, late penalty cost, transaction fees, etc ) associated with your business credit card.

Small Business Credit Cards With Rewards
If you want to acquire a business credit card with rewards, you should carefully study the type of reward offered. To really benefit from the reward program, it is very important to find a credit card that matches with the nature of your business.

For instance, if you’re into a buy and sell business, you may consider a business credit card with cash back rewards. If your business requires you to travel abroad a few times a year, then you can save a great deal from your travel expenses by getting a business reward credit card with Airline Rewards or Frequent Flyer Miles Rewards.

Keep in mind that some issuers of reward credit cards for small businesses strictly require good to excellent credit. Is your credit rating enough to qualify for your preferred business credit card? Watch out! If your online application gets rejected, it can inflict damage to your credit score.

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Choosing Your Business Credit Card
After spending some time comparing different business credit cards, list down your top three choices and be prepared to conduct a deeper evaluation of each one. Aside from good rates and fees, make sure that the business credit card comes with features or functions that will help you with your business management tasks.

Read and understand the complete terms and conditions. Remember that the real deal will be revealed in the agreement. No matter how attractive the advertisements are, it’s the Agreement page that will tell you the truth about your business credit card.

You may say that because you’re starting a small business, there’s really no need to get a business credit card and that you can use your personal credit card with your business as well. But credit card companies know that a huge percentage of the business industry are small business entrepreneurs. Thus, small business credit cards were introduced in the market and anyone- regardless of how small the business is- can apply for one.

True, if you’re a sole proprietor starting up a home-based business, you may opt to use your personal credit card for your business expenses. Since you’re managing the business anyway, no one would question you if you use your personal money for your business. Still, why is it advantageous for you to get a small business credit card?

Advantages of Using Credit Cards for Small Business
Using a small business credit card is undoubtedly better than using a personal credit card for business. First of all, it is not good idea to mix your personal money with your business funding. This may work well as you start the business, but as the business begins to grow and accumulate expenses, you’ll soon find that it’s very difficult to manage both your personal and business finances if they are both in the same account. For this reason, it is recommended that you separate your personal and business finances right from the start.

A business with a credit card is also regarded as more professional and more credible. As you deal with different financial institutions and suppliers, having a business credit card with your company name printed on it adds up to your image.

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Another practical reason why business credit cards are better for business is that they enable you to keep track of your business expenses more conveniently. The monthly statements of account, quarterly and yearly account summaries that you get from your bank are useful references when you do your accounting or bookkeeping tasks or when it’s time to file for your business taxes. Remember, some purchases may be eligible for tax exemptions and having a detailed record of all your business purchases will surely make job easier.

Aside from these advantages, business credit cards also come with more privileges and perks. With its reward programs that are especially designed for businesses, you can expect to get more incentives from your spending. In fact, having a business gives you the opportunity to rack your points more quickly and earn bigger rewards from your credit card use. So take advantage of these opportunities that are only offered for business owners like you.

Business Debt Consolidation
Consolidating business debts can be done in different ways. For instance, the business owner in debt may consider applying for a consolidation loan to pay all creditors in one lump sum payment. Afterwards, repayment of the loan will be made to the debt consolidation company.

Another debt consolidation method is known as DMP or Debt Management Program. Instead of taking out a loan, a business owner can enroll in a debt management program offered by a debt consolidation agency. Under this arrangement, monthly payments will be submitted to the consolidation agency who will distribute the funds to corresponding creditors.

Another way to recover from business debts is through debt settlement. A debt consolidation company can help you negotiate a settlement deal with your creditors to cut down as much as 50% or more of your total debts. In turn, the consolidation company will provide the debt settlement loan which will be payable within a specific repayment period.

Recover from Business Debts through Consolidation
Clearly, the principle of consolidating business debts is much similar to personal debt consolidation. Nevertheless, the amount involved is often much higher than personal loans. Nonetheless, business owners are advised to watch out for fake debt consolidation companies and scammers.

Before signing up for a consolidation service, you need to carefully check the background and reputation of the debt consolidation company. Inquire from the Better Business Bureau if there have been complaints from previous clients. Understand the different types of debt consolidation services the agency offers.

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IOnce you’ve found the right debt consolidation partner and you’re ready to consolidate business debts, keep in mind it is just the first step towards debt freedom. After taking a loan to pay all your creditors, you still have the obligation to submit timely payments to your debt consolidation lender. If you have decided to enroll in DMP, see to it that your payments are promptly distributed to your creditors and reported to the business credit bureaus. In addition, be sure to order a copy of your business credit report to make sure that you are making progress.

Aside from leading you to debt recovery, your business debt consolidation company should also guide you on how to manage your business finances more effectively and stay away from debt problems permanently.

What About Personal Liability?
As the business owner, getting approved for a business credit card makes you accountable for all the charges that would be incurred using your credit card. This is the “personal liability” clause included in your business credit card Agreement. This simply means that regardless of who or how the charges were made- you will be liable to pay your business credit card charges.

It may take a year or two before you can establish a solid business credit history. This is why entrepreneurs are advised to register with a business credit tracker as soon as your company is launched. After registering with a business credit bureau, you must build up your credit history by maintaining a good relationship with creditors.

Why Use Business Credit Cards with Extreme Caution
Business need to be very cautious about using their business credit cards. First, they need to make sure that only official business expenses are charged to the account. More importantly, monthly balances must be paid in full and on time. By doing this, an entrepreneur can build-up and maintain a good business credit record and protect his/her personal credit history from damages as well. Paying on time also eliminates additional fees that maybe incurred such as the interest rate and late penalty fees.

Some entrepreneurs may occasionally use their business credit cards for personal expenses. While this may seem harmless at first, such a habit must be avoided. Keep in mind that mixing personal and business expenditures into your business credit card account can affect your management strategy and financial decisions.

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If you have employees and you plan to distribute supplementary credit cards, make sure that you will be able to monitor your account regularly. Protect your account from abusive use of employee credit cards by checking your credit card bills and logging in to your online account on a daily basis. Keep in mind that in case some of you employees misuse your business credit card account, you will still be responsible for paying the charges and it is your personal credit history that will be placed on the line.

Check your credit.
Some credit cards for business strictly require good credit rating so if you have a poor credit score, submitting your application may only get your declined. For those with bad credit, you can start with a secured business credit card and use it to improve your credit. However, take note that secured credit cards for business will require advance deposit as guarantee for your debts.

Compare business credit cards.
Whether you are in search for a business credit card or d a business loan, doing comparison is a must. While all advertisements may promise a great deal, the only way you can be sure is by doing your own investigation. Read and analyze the Terms and Conditions to get to know the exact fees and how the interest rates are calculated.

Another way to compare is to check out business credit card review websites or comparison websites. Aside from reasonable interest rates and fees, consider carefully if the features provided are suited to the nature of your business. More importantly, you must make sure that credit reporting to business credit trackers will be provided by your issuer as it is the only way to build corporate credit history.

Rewards or non-rewards?

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In your search for business credit cards, you will find that some offer different reward systems (airline miles, gas rebates, cash back, etc). Before signing up, it is crucial to find a reward credit card that will complement your business spending and needs.

In addition, reward credit cards tend to have higher interest rates than non-reward credit cards so you need to be very careful about submitting your payments. To avoid the additional interest charges, a business credit cardholder must be able to pay the full balance each month before the due date of payment.

Make sure that you do not have to spend more than your business budget in order to get rewarded. On the contrary, you should be able to benefit from your chosen business reward credit card by using it only for important business expenses.

Understanding the rules of the reward system is just as important. As a business reward credit card cardholder, you should be aware of your privileges as well as your limits even before submitting your application.

Credit cards for business have expensive fees. Although it is true that there are business credit cards in the market that charge expensive interest rates and fees, it is possible to find credit cards with low rates and no fees at all. Yes, if you do your research well, there are business credit cards that offer low interest rate, no annual fees, reasonable late fees, and great customer service.

All business credit cards have annual fees. The credit card’s annual fee can range from $50 to as much as $100 or even more. Reward credit cards often require annual fees but there are also some great credit cards in the market such as ones from MasterCard, Visa and Amex with no annual fees at all.

Paying with credit cards mean paying additional interest fee. If you think that owning a business credit card ties you down to the interest fees, you can actually skip the interest fees completely by submitting your monthly payments on time. However, even if you intend to pay off your monthly balances in full, it is still recommended to look for a credit card with a low APR just in case you need to carry over a balance. Also, choose a business credit card that gives you ample time to work on your payment or a card with at least a 30-day grace period.

Using business credit cards is risky. Despite the many cases of credit card fraud reported, business credit card companies have come up with a way to provide its card holders more protection against stolen identity. Today, business credit cards offer liability protection in case of unauthorized charges.

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Business credit cards are all about debt. Not all debts are bad. In fact, you need to take on some debts to build up your business credit history and having a credit card for business is one of the easiest ways to establish business credit. As long as you take your payment obligations seriously and you keep your credit card use in proper perspective, there shouldn’t be any harm in owning a business credit card at all.

Business credit cards are only for big businesses. Today, credit card companies have introduced small business credit cards that are especially designed for small business entrepreneurs. Unlike a corporate credit, small business credit cards involve an easier application process and can actually help you establish a credit history for your company.

Are you planning to apply for your own business credit card? If yes, then this article should be able to help you out in making the right choice. With a number of small business credit card offers in the market, what factors should influence your decision?

Comparing Business Credit Cards

Sufficient credit limit. It’s a good idea to choose a business credit card with sufficient credit limit. Since you will be using your credit card on business expenditures, you will need a higher credit limit than what you have with your personal accounts. The danger in having a low borrowing limit is the tendency to maximize or exceed your allowable credit, which can badly affect your credit rating.

Interest free credit. Try to look for a business credit card that offers a zero interest introductory promo. Entrepreneurs, especially those who are just starting up can take advantage of the 0% APR period to purchase equipment or stocks and make deferred payments with no interest charge. Also, make sure that your small business credit card comes with sufficient length of grace period so you can have a longer opportunity to pay back your balances without interest.

Online Account Access. Always choose a business credit card that allows online account access. Monitoring your account is a very important step to avoid overspending and to make sure that all your charges were official business expenses.

Supplementary credit cards. Most credit cards for small businesses allow the option to distribute supplementary cards to employees. However, some issuers may ask for a fee for each employee card issued while others offer this service for free. Make sure that you can preset spending limits on each employee card to protect your account.

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Fraud Liability Protection. Under the Federal Law, only consumers have the right to dispute unauthorized charges. However, there are business credit card issuers that offer fraud liability protection and purchase protection for their customers.

Great Reward Program. Find a reward program that fits the spending style and needs of your company. Before applying for a business reward credit card, understand the rules of the reward program and check out the rates and fees.

Low APR. To protect your credit history, it is recommended to start with a business credit card that has a low APR, especially if you plan to make deferred payments.

Managing Finances Made Easy

Business credit cards are primarily advantageous because it enables a business owner to draw the line between business and personal expenses. A business credit card can be exclusively used for business expenses only while all other personal expenses can be charged to a personal credit card. Why is this important?

Some entrepreneurs may say that it really makes no difference whether you use a business or a personal credit card. Nevertheless, as you incur larger expenses and as your business grows, having a business credit card to handle your business bills can prove to be indispensable.

Business credit card issuers send monthly and yearly account summary reports to help their cardholders keep track of their spending. Most issuers also provide account reports that can be downloaded from the internet and used alongside accounting software like Quickbooks. This way, a business owner can simply use the reports as reference when doing accounting and bookkeeping tasks.

This is especially true when tax season arrives and you need to file your business taxes. Keep in mind that as a small business, you are entitled to certain tax privileges or deductions. By having separate personal and business accounts, identifying which of your purchases or bills are tax deductible becomes automatic and keeping certainly makes the job a much easier task.

Business Credit Cards and Rewards

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Another great thing about business credit cards are the different reward programs that are exclusively offered to business owners. The programs may vary from Cash Back to Gas Rebates to Frequent Flyer Miles and other special types of rewards. Thus, by using your business credit card to purchase stocks or to pay bills, an entrepreneur also gets the opportunity to earn bonuses and special privileges.

Last but not the least, credit cards for small businesses are great tools in establishing and building business credit. Once approved for business credit card, you can begin building corporate credit history as a preparation for your future plans. By using your business credit card regularly and submitting payments on time, building excellent business credit should be uncomplicated.