Why you need to get small business credit card
Many small business owners are hesitant to take out loans and to get their companies into debt. Thanks to the recession and rising unemployment, it is easy to see why so many people are nervous about debt. However small business owners can do themselves a great service by turning to a small business credit card to help grow their business. The small business credit card can give you a number of advantages, all of which are attractive and should be considered. Getting a small business credit card is a great way to establish business credit, which can help you in the future when you want to get loans and other things to grow the business.
Here are some of the ways in which a small business credit card will be able to help your company grow and develop properly:
- Increases cash flow - for small business, having some extra money around for cash flow needs and other things is very important. You should use a small business credit card to help increase your companies cash flow and to use it to pay for expenses like your inventory items. This is a great way to pay off the things that you owe and to have 30 additional days to collect the funds from your customers to help pay for the credit card bill.
- Rewards - unlike your personal credit card, your business credit card likely comes with a lot of rewards. This is great as you can use them for airline tickets and other things. If you are a small business owner that does a lot of entertaining, you need a business credit card that includes rewards. Frequent flyer cards are a great investment for anyone that does frequent the airlines as you can get free tickets along with discounts on hotel rooms and other things.
- Larger credit limit - with a business credit card you will be able to get a larger credit limit than you can ever get with any other type of credit card. Having a higher credit limit gives you a little flexibility but it is a good thing to have when you need to make some big purchases like buying new equipment or machinery. If you need to extend the credit card limit and you have been a loyal customer and you always pay off your bill on time, it will be easy for the company to offer you a larger line of credit.
- Lower APR - many small business credit cards will give you 1-2 years of 0% interest and then they maintain a very low interest rate after that time. This is a great way to use the credit card for larger purchases and to pay it off interest free.
- Safety - one of the great things about a business credit card is that it will be able to give you safety when you are buying online. The credit card is safe to use because it is backed by the bank and they will offer you no liability for any unauthorized charges. It is also easier for you to change just one account instead of several accounts like you may need to if you used your companies debit card instead.
- Track spending - when you use a small business credit card, it makes it a lot easier to track your spending as well as your employees spending. You will be able to see where all the money is going each month and it will help you to prevent employees from spending money where they really shouldn't. This also makes it easier for you to confront an employee that is overspending money or is using the card for personal use.