Top 5 Reasons to Get a Business Credit Card
Largest market for business credit cards tends to be the small business owner. Following are reasons why small business owners prefer business credit cards:
1. You Can Extend Cash Flow Small businesses need access to all types of capital to grow and expand. This is particularly important for startup entrepreneurs who frequently fail due to insufficient capital and unexpected poor cash flow. Business credit cards can help ease the highs and lows of small business capital needs. Many small business credit cards also offer an Introductory 0% APR for 12 months or more. This can provide short-term relief for your business if you are experiencing temporary cash flow problems. Cards with and introductory 0% APR can also provide you with an influx of startup cash to get your business off the ground.
2. You Can Pay Your Suppliers With Client FundsBusiness credit cards can be used to pay suppliers and contractors, as well as purchase items for clients before invoicing them. It's easier to justify expenses to a client if you can present them with an itemized expense report from your credit card issuer. But better than this, if your client pays in a timely fashion, you can use their payment to pay for the supplies purchased to complete their job. Thus, you never have to dip into company funds.
3. You Can Get Flexible Credit LimitsBusiness credit cards have either preset limits, typically to a maximum of $50,000, or no-preset limits. This second type usually has an annual fee and must be paid off at the end of the month. Credit cards with preset limits usually don't have an annual fee. If your business spending is seasonal and prone to spikes due to inventory purchases or traveling costs, a credit card with no-preset limits is a better choice to cover all business costs. However, if your business operates on a cash basis and doesn't stock goods for sale, look for a card with a moderate credit limit and a low APR, so you can use it to track expenses or in case of emergencies
4. You Can Get Detailed Expense Reporting that Simplifies BookkeepingA key factor for business success is being able to monitor and cut expenses. Business credit card issuers make this easier by providing detailed monthly, quarterly, and yearly statements that can even be categorized depending on types of expenses. Year end statements provided can be invaluable for monitoring spending by category, reporting rewards, and simplifying tax preparation. With this benefit you don’t need to keep track of every little receipt
5. You Can Get Air Miles for Frequent Travelers or Cash Back for Frequent SpendersIf your business requires frequent travel and/or client entertaining, you should consider a business credit card with travel rewards. You can receive benefits such as 1 mile point for every dollar charged and 10,000 or more free points when you sign up. In addition you can gain automatic travel insurance and baggage protection. On the other hand, if your business has hefty monthly expenses, you may also be able earn significant cash back rewards, typically as high as 1% to 5. The advantage of cash back rewards is that they do not require any effort on your part to keep track of.
Business credit cards also offer rewards points typically at a rate of 1 point per dollar spent to be redeemed for such things as merchandise or travel. Rewards card issuers also often sweeten the deal with numerous opportunities to earn multiple points per dollar spent for targeted merchant promotions.Realistically, rewards or cash back incentives will not make you rich, but if you do use your credit card frequently, you could get several hundred dollars per year back in value.
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1. You Can Extend Cash Flow Small businesses need access to all types of capital to grow and expand. This is particularly important for startup entrepreneurs who frequently fail due to insufficient capital and unexpected poor cash flow. Business credit cards can help ease the highs and lows of small business capital needs. Many small business credit cards also offer an Introductory 0% APR for 12 months or more. This can provide short-term relief for your business if you are experiencing temporary cash flow problems. Cards with and introductory 0% APR can also provide you with an influx of startup cash to get your business off the ground.
2. You Can Pay Your Suppliers With Client FundsBusiness credit cards can be used to pay suppliers and contractors, as well as purchase items for clients before invoicing them. It's easier to justify expenses to a client if you can present them with an itemized expense report from your credit card issuer. But better than this, if your client pays in a timely fashion, you can use their payment to pay for the supplies purchased to complete their job. Thus, you never have to dip into company funds.
3. You Can Get Flexible Credit LimitsBusiness credit cards have either preset limits, typically to a maximum of $50,000, or no-preset limits. This second type usually has an annual fee and must be paid off at the end of the month. Credit cards with preset limits usually don't have an annual fee. If your business spending is seasonal and prone to spikes due to inventory purchases or traveling costs, a credit card with no-preset limits is a better choice to cover all business costs. However, if your business operates on a cash basis and doesn't stock goods for sale, look for a card with a moderate credit limit and a low APR, so you can use it to track expenses or in case of emergencies
4. You Can Get Detailed Expense Reporting that Simplifies BookkeepingA key factor for business success is being able to monitor and cut expenses. Business credit card issuers make this easier by providing detailed monthly, quarterly, and yearly statements that can even be categorized depending on types of expenses. Year end statements provided can be invaluable for monitoring spending by category, reporting rewards, and simplifying tax preparation. With this benefit you don’t need to keep track of every little receipt
5. You Can Get Air Miles for Frequent Travelers or Cash Back for Frequent SpendersIf your business requires frequent travel and/or client entertaining, you should consider a business credit card with travel rewards. You can receive benefits such as 1 mile point for every dollar charged and 10,000 or more free points when you sign up. In addition you can gain automatic travel insurance and baggage protection. On the other hand, if your business has hefty monthly expenses, you may also be able earn significant cash back rewards, typically as high as 1% to 5. The advantage of cash back rewards is that they do not require any effort on your part to keep track of.
Business credit cards also offer rewards points typically at a rate of 1 point per dollar spent to be redeemed for such things as merchandise or travel. Rewards card issuers also often sweeten the deal with numerous opportunities to earn multiple points per dollar spent for targeted merchant promotions.Realistically, rewards or cash back incentives will not make you rich, but if you do use your credit card frequently, you could get several hundred dollars per year back in value.
To know more, visit here
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