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Business Credit Card: A Solution for New Business

Sep 4, 2008
A new business setup can get extremely chaotic and overwhelming for you. It is a little while before you can establish yourself in the business world when, it will become easier to understand how to do things the right way the first time around.

Credit cards specifically meant to help small businesses succeed are one way to ease the chaos. The business owners can charge all their essentials to the business credit card. The advantages of a small business credit card are numerous.

* Business Line of Credit

The business credit cards have a higher line of credit than consumer credit cards. This helps free up some of the company's financial resources so long as they pay the balance due each month. Using a small business credit card responsibly could ease your concerns until you begin to regularly make a good profit. Unexpected expenses can be absorbed without major repercussions.

* Tracking Expense

Keeping track of all the company expense becomes much easier if you utilize one single credit card for all your company expenses. Some business credit card companies also provide the facility of categorizing your business expenses making it convenient for purposes such as calculating the company tax and reviewing your initial business plan.

* Establishing a Solid Credit Foundation

As long as you pay at least the minimum payment by the due date, you will gain a good credit history and your credit limit will be increased. A high credit limit can be very useful as a backstop when you encounter unexpected cash flow problems. A good credit history abets the process and plans for future expansion that you may have. The privilege of a larger loans being approved may be the very thing you need.

Choosing the right business credit card is probably the most critical step towards safeguarding your business interests early on.

When opening a company account banks invariably offer you credit cards, however that does not necessarily make it the best credit card for your needs. The most popular credit card providers are Chase, AmEx and Citi Cards, online comparison and tracking proves. It is important to take the time out to research and choose the right business credit card as per your requirements. A few criteria to look for when choosing your business credit cards are:

* No annual fee

An annual fee is unnecessary when interest is being charged on the purchases made through the credit card. There are available a range of credit cards in the market offering Compare different benefits as well as terms and conditions on the credit cards online before making your decision.

* Low rate of interest

If you intend to use the business credit card on a regular basis, to charge office expenses and travel costs and you are likely to carry over an outstanding balance from month, you will need the lowest rate of interest possible in order to keep your monthly credit card costs down. Every percentage point of interest a business can save on monthly credit card costs is profit instead of expense. The vibrant competition in the credit card market results in several good deals with respect to interest rates as well as bonuses.

* Credit cards with rewards

Credit card companies offer several bonuses which can prove very helpful to small business and companies, such as airline travel rewards. The points earned on office expenditure can be redeemed for the cost of flights, car rentals, hotel reservations, and much more. Another bonus given by some credit cards is a cash back sum, but this may accompany only credit cards with rates of interest or annual fee higher than other cards. The business would have to use the card sufficiently to get an adequate cash back sum equal to the amount you pay in annual fees alone.

So it makes better business sense to apply for a business credit card than a consumer credit card. When applying for a corporate credit card for your business, be wary of any company credit card, which requires a personal guarantee. Ensuring that your company is in the credit card in the name of your company, you can help build your business credit, while avoiding creating problems with your credit.`
About the Author
We help in finding the right business credit card for you. We offer business credit cards with 0 apr, no annual fee and competitive rates. You can also choose student and consumer credit cards to suit your requirements. Apply for your credit card online.
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