Simple tips for wise usage of business credit cards
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Cards for Business » Simple tips for wise usage of business credit cards

Simple tips for wise usage of business credit cards

Add to Favorites:

Business credit cards can do a world of good for people who are either planning to launch a new business or are already running a business enterprise. These cards are exclusively designed to make purchases related to your business needs so your daily transactions proceed smoothly without a hitch. Many people who have obtained these cards have managed to use it effectively, while a few of them have faltered and incurred large insurmountable debts. The business credit cards can serve you well for a long time if you use them wisely and make well informed decisions.

Differentiate between "want" and "need"

You will have to first understand the difference between what you "want" for your business and what your actual "need" is. Use your business card to buy things that are needed for your business and not to buy what you want. For example, if the business deals with wed design and development, then a computer is needed for the business to run smoothly. On the other hand, a new desk for you to keep your computer on because your current one looks old is just a "want" and not a "need". You can wait to buy the new desk but not the computer. So, use your business credit card for the computer and the not the desk.

Use to make purchases that help you make profits

Another way to put your credit card to good use is by opting to make only those purchases on the card that help you get your money back. Considering the example cited above, investing the money on your card to purchase the computer is more profitable than using it to buy the table. The table is a dead investment and will not help you generate funds. However, a good computer is sure to help you make over ten times the money you invested in buying it.

Build your nest egg

As the business begins to grow, you have to manage the funds wisely and try getting over your dependency on your business credit card. Each month, set aside a particular amount towards your business card debt and invest the remaining money in either a savings or checking account so you can use it when needed. As the business expands, reduce using your business card. Do not close the card but keep it aside for emergencies.

Repay your debts on time

One of the most important things about business credit cards is that you have to repay the debt you have incurred on it regularly. You may just be able to make the minimum payments until your business starts functioning smoothly; however, once it stabilizes and starts generating funds then make sure you pay two times the minimum amount due so your debt reduces faster.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading