A credit card can act as lifeline for businesses and business owners. Many credit card companies, especially those aimed at businesses, offer business credit cards which provide flexibility and has a lower rate of interest which you can use to raise your capital and boost your business. These cards stipulate that business owners have an easy and convenient method of keeping business and personal transactions separate. There are two types of business cards available in the market:
Standard business card:
It is a commonly used business credit card which allows you to keep your balance to a certain limit. These cards provide you with credit to make purchases up to a certain limit and made available again once you pay off the purchase. Interest will be charge to the outstanding balance at the end of each month. You need to make limited payments every month before the due date to secure yourself from late penalties.
Charge business cards:
These cards don’t have any pre-set credit limit and you have to pay off balance in full at the end of each month. These cards don’t involve a finance charge and minimum balance as the debt is to be paid at once.
Benefits of business credit cards:
Some of the appealing benefits of business credit cards are:
- When you use a single card for making all your business purchases and expenses, you can easily keep track of your expenses and money. With the help of your credit card statement, you can find out what your expenses and purchases were in the previous month.
- You can also get additional business cards in your key employee names. If your staff manager pays for the office expenses you can provide them with a card. It can help to monitor expenses of each employee by looking at the card statements.
- If you use a credit card that offers reward programs, you can earn and save money by getting some reward points on your every purchase. You can use those reward points towards future purchases.
- Using business cards opens doors to many opportunities for your business. Consider these benefits before deciding not to opt for credit cards. If your credit score is not good enough to get a business credit card approved, you can follow these tips to build your credit score:
- Opt for prepared or secured credit cards in which you have to provide money to the lender as security
- You can opt for short term loans such as payday loans which you can repay easily on your next payday
- Try to make payments on time
- Know your debt to get rid of it
My name is Kevin. I am a tech writer from UK. I am into Finance. Catch me @financeport