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If you're still contemplating about whether you should get a business credit card or not, this is the article for you. Here, we will discuss the benefits of having this card, the different types are available for you and why these cards are worth the deal.
The Benefits of Credit Cards for Small Business
One of the best things about applying for this card is that it enables you to build a credit history for your business. Building your business credit history will be your foundation. As your business begins to grow, having a strong business credit will open more doors of opportunity for your business goals. For instance, by the time you want to expand your business, an excellent credit will enable you get approved with a business loan more easily.
Managing your business finances are also made easier with the help of this card. You can use your quarterly and yearly summary of accounts as reference to your bookkeeping. In fact, some cards allow you to download your account summary to you computer so you can use it along with your accounting software. An access to your account online is also provided so you can check your account at any time you want.
Of course, it help you separate your business finances from your personal money. As your business grows, you'll find that this is indispensable. Just imagine how confusing it would be if you have to manage your personal and business expenses using just one account. By having a business credit card, you can easily tell which of your expenses are for business and which ones are not.
Different Types of Business Credit Cards
It can be categorized according to the size of the business it caters. Corporate credit cards are specially designed for large businesses and corporation while small business cards are created for small business owners and home based entrepreneurs.
It can also be classified according to the type of credit it approves. If you have an excellent credit rating, you should have no problem getting approved this card. However, if you poor credit, you can apply for a secured business credit card instead. As the name suggests, a secured business credit card requires a collateral to be submitted as security for your debts.
Furthermore, it also come with various types of reward programs such as ones with Frequent Flier Miles Reward, Hotel Rewards, Gas Rewards of Cash Back Reward Programs. As a business, you can definitely take advantage of your credit card usage by getting more points and earning rewards more quickly.
Are Business Credit Cards Worth the Deal?
So are they worth the deal? Just like with personal credit, it is up to you to find a card that suits your business needs and spending style. Obviously, not all cards will offer reasonable interest rates and costs so you should also do your research before choosing one.
Lastly, how you use your card to your advantage will make the difference. As long as you strive to pay off your credit card balances each month, you should have no problem staying out of debt and keeping your business credit history in good standing.