Basics of doing business with credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cards for Business » Basics of doing business with credit cards

Basics of doing business with credit cards

The content is accurate at the time of publication and is subject to change.

Business credit cards have been gaining popularity over the past few years. It is important that you understand how to manage it so that you don`t end up spending more than you can afford. Try to understand the basics of using the card when you finally decide to go for a business card instead of using your personal card for your business transactions. If you know how exactly to use it, you will get a lot of benefits from using your business card.

The main advantage of using a business card is that you can avoid co-mingling. It is important to keep your business and personal transactions separate while going about your purchases. If you mix both the transactions on one single card, it will cause a lot of financial and tax issues which will complicate matters for you. Besides, it will help you to track all your business transactions easily without having to sort them out from your other transactions.

Once you are able to establish a good credit reputation, you can easily apply for loans from the bank that has given you the business credit card. A lot of financial institutions will be more willing to give your company funding when you are able to show proof that you are good at managing your finances on the credit card.

At the end of the fiscal year, when you are making a summary of all your transactions, it will be a lot easier if you have just one expenditure account to look into. It helps in itemization of all your transactions. You can get rid of all the receipts and bills that will just add up to the paper waste that your business would generate. Besides being environmentally unfriendly, it will also add to the cost that your company would incur in terms of paper waste and ink cartridges.

You can also easily monitor employee expenditure if you have provided them with a company credit card. Rather than have them get paper bills for all sundry expenditures. These are the benefits of using a business credit card, but just like any credit card you will need to remember a few important things about credit accounts. You must and should pay your outstanding balance by the due date in order to avoid being labeled as a defaulter. If you cant pay in full, at least ask your bank for an extension or pay in installments to avoid defaulting on payments.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!