Why Use a Small Business Credit Card? | Finance Explore ...

Article by Brad Stridgeon

As an owner of a small business, you want to be able to set aside cash while purchasing the supplies and equipment necessary to keep your business in good shape. How can that be possible? A small business credit card, when used properly, can help your business grow.

The following are six great reasons for using a credit card made for small businesses:

1. A small business credit card can help improve your credit standing. A good credit standing is essential to your business since it increases your chances of getting better loans to finance your business operations. To enjoy a high credit score, you need to pay off your obligations in full and on time. Also, you have to partner with suppliers and business contacts who will report your transactions to credit agencies.

2. It will give you control over your employees? business-related expenditures. If you use a small business credit card, you can easily set restrictions on the spending of your employees. That means more savings for you. Just be sure to check the statements you receive from your employees so that you will be able to see if they spend within the limit you have set.

3. It has a higher credit limit than a personal credit card. This advantage makes small business credit cards a better option for business owners than credit cards made for personal use. In general, small business credit cards set credit limits of at least ,000. Such a high credit limit makes it a lot easier for you to purchase high-value items such as machines and equipment that your business needs.

4. It offers many business perks. As a small business credit cardholder, you get to enjoy certain rewards that are related to your business. Examples of perks that you may get from small business credit cards are discounts and special promos on shopping at business supply stores as well as on business travels. These special rewards are definitely useful in lowering your business expenses.

5. It stands on its own. With a credit card for small business, you are given a separate business credit. That means your transactions will not take into account your personal credit rating. Having a separate business credit also makes it easier for you to prepare your income tax returns since you do not have to sort out your personal and business transactions. That helps prevent future tax problems. In addition, using a small business credit card is your proof to the Internal Revenue Service (IRS) that you are managing your business finances skillfully.

6. It makes tracking business costs so much easy. Many small business owners find it challenging to make their year-end financial statements because of the numerous items on their expenditure list. As a business credit cardholder, you will receive a statement summary with itemized transactions from your credit card provider by the end of the year. You won?t have to sort out multiple receipts and vouchers to complete your bookkeeping tasks, thanks to a small business credit card.

Small business credit cards offer these and many other benefits to business owners who are struggling to make profits. As with credit cards for individuals, small business credit cards should be used carefully to avoid accumulation of more debts than you are able to pay off.

About the Author

Brad Stridgeon has written various articles for several years,usually for other poeple. He also maintains his sites which discusses finding the right remortgage companies and intricacies of remortgage loans to keep people informed.

For Happy Baby, personal connections are very important. Shazi uses her American Express OPEN Gold card to further those connections. Last year she took dozens of trips using Membership Rewards points to be there face to face to meet the farmers and merchants that sell Happy Baby products.

from your own site.

Source: http://www.financexplore.com/why-use-a-small-business-credit-card

stock market the change up the change up remy remy lulu sean avery