Tracking with Business Credit Cards

Business credit cards help businesses efficiency keep their books. They help businesses to separate business and personal finances. Credit cards companies offer reports on card accounts. All of this helps to track of business finances. Multiple credit cards means more accounts can that can make life easier. Reports of business activity on cards can be given annually, quarterly, or monthly. This is a real time saver.

These reports come include expense categories. They can be set up any way that is needed. The report can feature fuel expenses, travel expenses, food and hotel expenses, or even supply purchases. This is an excellent way to enhance bookkeeping records.

This helps to simplify expense spending to know where the business’s money is going. It just makes good sense to boost the business up with a business credit card.

Business Credits Cards for Strong Credentials

Business credit cards are for companies of all sizes. Current money flow cycles demand the reliability of business credit cards. A great way to track and limit the amount of monthly spending, business credit cards are important to a business’s bottom line.

Business credit cards are practical for today’s companies. Outside of money management uses, business credit cards give the holder credibility and cast a perception of legitimacy to vendors, employees, and other businesses. This is an essential tool for expanding organizations.

Today’s savvy business owners recognize the significance of business perks and a stronger bottom line that comes with a new credit card. It can help in building a stronger credit history. It is imperative to choose a business credit card that best fits your business model. It is a good step on the road to building a strong business.

5 False Rumors about Business Credit Cards

Small business owners, when first attempting to get credit from a credit card company often are accepted as clients with the provision that they personally sign for the business credit card. Otherwise, their application will be rejected. Don’t be scared off by this tactic. The credit card companies prefer to reduce their risk, so they will make it appear that you don’t have a choice.

You may have been told that there are drawbacks to you, as a small business owner for having a business credit card, but be assured that if you strategize correctly, these are not true. Here are 5 rumors we’ve all heard about business credit cards:

1. You can’t separate your business credit from your personal credit with a business credit card for several years.
2. You are personally liable for your business credit card.
3. Your business credit card payment history will be reported on your personal credit. (Experian & Equifax)
4. Your business credit activities can damage your personal credit.
5. A large debt tied to your business credit card can make you personally look more extended than you are in fact.

The truth is that if you don’t personally sign for the card, those 5 points do not apply. You can get a business card based strictly on your business credit (Paydex score). Be cautious when signing your name on any type of business credit application and be sure that your signature is not making you personally liable. A business loan underwiter can take educate you how to separate your personal credit from your business credit.

Things You Need to Ask Yourself about Your Business Credit Card

As a small business owner itching to get your hands on a business credit card, have you considered what you are getting yourself into? It’s obvious that a company, no matter how small needs a credit card to be able to conduct business. There are certain things that just can’t be done without one now, but have you thought about how a credit card can best serve your needs?

It makes sense to use a business credit card to handle your company expenses because it relieves you of the need to carry around a lot of cash. Using the card helps you track your expenses as well. You’ll need to calculate how much revolving credit your company will need each month to determine what type of spending limit you need on the card.

Are you the only one using the card or do you have employees that need cards as well? You may need to request multiple cards for the people in your company that have the authority to use them. Ask your credit card company if they can individually track the employee’s expenses.

Does your business require a lot of travelling? If it does, you may want to consider a credit card that gives you deals on travel expenses such as car rentals and hotel stays. If you travel by air, there is a credit card feature available that allows you to earn Frequent Flyer Miles.

There are other practical applications that you can investigate before choosing a business credit card. What kind of customer support is offered customized reports, acceptance by merchants, overdraft protection, and local branch access? Last but not least, how much will these cards cost you? What are the interest rates and annual fees?

Every Business Needs Business Credit Cards

Every small business owner needs to have a credit card or a line of credit to do business transactions. Having a business credit card in the name of the business rather than in the personal name has advantages for a start up business and existing businesses alike.

A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.

However, some companies out there offer “business” credit cards which they require a personal guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the business credit card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.

It is hard to find business credit cards that report activities to the business credit profile rather than the personal. Although scarce, these no credit business loans and credit lines do exist. As a tip – Avoid putting your social on any applications and remember that your signature most commonly signifies a personal guarantee.