Using credit cards for business needs

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Using credit cards for business needs

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

Credit cards are dependable, secure and convenient way of managing finances, whether it is household, or business. Credit cards can help build good credit for small business owners and help them get better financing for their business ventures. Good credit history increases credibility in the business, which is very important in sealing the deals with venture capitalists.

It is always better to keep the business and personal finances separate. This also means that using two different credit cards for business and personal needs. Using a different credit card for business helps in bookkeeping, as well as to file taxes and keep a track of income versus expenses. Because of the monthly bills and a detail of every purchase made from the credit card, it is easier to have proofs for expenses. But taking care that the business credit card is not used to make any personal purchase is essential, in order to keep separate accounts. Also, two different credit cards mean two different bills and payments to take care of, so it is important to keep track of payments on time.

Business credit cards will need a higher credit limit, to help make the business expenditure a little easy. To obtain higher credit limits, the applicant's credit history should be impeccable. This can be achieved with the help of personal credit card, and loan accounts if any. Money lenders can report the prompt repayment of loan to the credit reporting bureaus, which can help achieve good credit history, when coupled with credit card. Personal credit card also must be used carefully, in order to avoid even a single negative score on the credit history.

Business credit cards that offer great reward schemes are available these days, to help business owners make some benefit out of their business purchases. Business credit cards that offer such reward schemes might cost an annual fee, but because the reward schemes usually provide discounts and rebates, annual fee will be well worth. Free hotel stays, free air miles, discounts on computer equipment and office needs, rebates on machinery and online discounts are some great benefits, which makes business credit cards attractive.

Almost every credit card company offers a credit card in the business credit cards category, so comparing the offers from different companies could be a good starting point. It will always be beneficial to negotiate a deal in the bank where the applicant holds an account, since they will give special offers for loyal customers.

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.
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