Why Business Credit Cards are Good for Small Business Owners

Are you a small business owner? If you have established a good credit rating for yourself, you should consider getting a business credit card. There are many business credit card programs that you can check out. Business credit card offers include low APR, zero introductory interest rates, balance transfer options and rewards in the form of airline miles and cash backs. And if your small business sends you traveling frequently, you can get travel discounts on cars, hotels, travel insurance, and even restaurants when you use a business credit card.
Lower Interest, Higher Credit Limit
If you have credit history that is better than normal, you may be able to avail of a business credit card that has lower interest rate and higher credit limit as compared to other cards. As a business owner, you tend to spend more and maintain higher credit card balance than the average credit card user. This is the reason many credit card companies are willing to offer you better rates and benefits.
Handy for Small and Large Buys
A business credit card is handy when it comes to small and large expenses. You can use a business credit card for items like office furniture or stationary supplies. With a business credit card, you won't need to maintain a small cash account anymore. Since a business credit card has a higher credit limit than a standard credit card, you can use it for unforeseen expenditures and pay it off as soon as you have the cash.
Useful Come Tax Time
Having a business credit card becomes incredibly useful when tax filing comes around. This is because almost all companies that provide business credit cards also offer free quarterly or annual reports categorizing all your expenses. Come tax time, this convenience allows you to keep a tab on your cash flow and separate your business expenditures from personal expenditures.
Superior Customer Service
The customer service available for business credit card holders is far more superior to any other service. Companies provide many 800 customer service numbers for business credit card holders to make sure that they maintain business owners as customers.
Issuing Business Credit Cards to Your Employees
If you have employees, you can issue business credit cards for them too. You or your authorized representative can specify additional credit card holders. Each of them will be given different account numbers but all are hooked up to the main business credit card account.
With this kind of setup, you can easily track and manage the expenditures of your employees. You also would be able to find out if anyone is misusing company funds or abusing his or her credit card.
To cancel any account, a simple phone call to customer service would suffice. Canceling an account will not affect the primary business account. However, as the primary account holder, you remain responsible for charges made on other accounts. One way you can deal with this potential problem is to issue pre-paid cards to your employees. You can load the cards with a specific amount, automatically setting the card's upper spending limit.
Smoothing Out Cash Flow Bumps
Most businesses have lags in their accounts receivables. Having a business credit card can help smooth out those cash flow bumps. You can pay with your business credit card then invoice your clients. You can make the payments once you receive payments from your clients.
Where and How to Get a Business Credit Card
You can apply for a business credit card from any of the major financial institutions. You can choose from the various programs they are offering. From Platinum to Debit cards, these companies offer low rates and no annual fees. You do not need to provide proof such as a business license in order to be approved for a business credit card.
If you're Internet savvy, you can even apply for one right on the card issuer's web site. You only have to complete the application form and hit the submit button. An automated computer system then performs a credit check and you'll get an answer in just a few seconds. So if you're a busy business owner, applying for a business credit card online is a great option for you.

Need more information on how to find the best business credit cards then try visiting BestOnlineCreditCardOffers.com where you will find a wealth of information on instant approval credit cards, low interest credit cards, prepaid debit cards and secured credit cards

Article Source: http://EzineArticles.com/?expert=Tim_Gorman

Business Credit Cards: Comparison Shopping Tips

The freedom to be the boss is just one of the perks sought after by business owners. But along with this freedom comes the concern of fulfilling responsibilities to customers, employees and lenders. Chief concerns are usually those dealing with money.
Small business owners frequently borrow funds and often use credit cards to get their business off the ground. The most frequently used kinds of credit were personal and business credit cards, lines of credit and vehicle loans according to a study published in 2003 by the Small Business Administration. In fact, 46% percent of small firms used their personal credit cards and 34% used business credit cards to help in their business matters.
While it is sometimes necessary to utilize personal credit cards during the start-up phase of a business, continuing to use a personal credit card may not be the wisest choice once a business is established.
‘It’s not personal. It’s just Business.’
Tee Dunn, a small business owner for four years and a member of CreditBoards.com, says that like many, she utilized her personal credit cards in the early days of her business. As her business grew and continues to grow, she finds her needs changing.
“It was becoming hard to gauge how much money I was making while using my own credit cards and cash; I needed to separate my business and personal cash flow,” she says.
There are distinct advantages to having a credit card in your business’ name.

Build credit history in the business’ name

Capacity to account for expenditures accurately, and to

correctly gauge income

Easy itemization for tax purposes

Vendor discounts

Concierge services offered by the lender

Financial consulting services

According to Gerri Detweiler, a credit expert and author of “The Ultimate Credit Handbook", unless the business has been incorporated for at least two years, has about 25 employees, and a large revenue (around $2 million per year), then a business credit card will have to be personally guaranteed. This means that the issuer will base its decision in large part off the credit history of the person signing for the credit card.
What this means for most small business owners is that they have to start small and build a credit history for their business. For those trying to re-build their credit, a credit card secured by and equal to a collateral deposit may be necessary.
Much like her business, Tee built her business credit line from the ground up. She started small by applying for a card from Office Max with a $250 limit; she also obtained lines of credit from Federal Express and Staples. While some of these credit cards did require a personal guarantee to prove her ‘credit-worthiness,’ Tee has quickly managed to establish credit for her business. With good credit management, she reports offers coming in from larger lenders within six months – some offering credit limits of $10,000.
Tee states, “The perks are great, too. With a business credit card, you get discounts from wholesalers who wouldn’t give a second glance to a personal credit card.”
There are many other perks afforded to business card holders, including travel accident insurance, collision coverage on rental card, free or inexpensive additional cards for employees, individual credit lines on each card, and detailed monthly, quarterly and annual transaction reports.
Playing Your Cards Right
Lenders have good reason to be interested in the small business owner- owners represent an estimated $75 to $100 billion market. Choices such as cash-back incentives, free additional cards for employees, and free online account management are all perks that indicate increased interest in the small business segment.
Tom Sclafani, spokesperson with Open for American Express, says that Open: The Small Business Network, offers a variety of features specifically relevant to the business owner, including online account management and discounts from partner vendors. “With Open, cardholders receive automatic discounts from Open partners which include Staples, AT&T, and FedEx.”
Open also offers expense reporting tools and online account management for all the credit cards tied to the account. Says Sclafani, “not only does this allow the owner to manage cash flow and budget, they are able to compile expenditure information to leverage with their suppliers.”
CitiBusiness Mastercard offers an "Ask the Experts" business consulting program. Owners can ask specific business-related questions and within two business days receive a personalized answer that includes information, ideas and suggestions.
(These are just a few of the incentive offers and business management tools offered. For more information on these and other business cards, visit the business credit section of CardRatings.com.)
What to Look for When Shopping for a Business Credit Card

Annual Percentage Rate. It’s a competitive market; make sure you are getting the best interest rate you can.

Fees. Are there annual fees or other types of fees? If so, will you gain enough incentives to justify the fees?

Perks.What kind of perks will benefit your company the most? If you travel a lot, then look for cards that earn miles with no blackout dates. If you make lots of business purchases look for the cards that offer cash back incentives or vendor discounts.

Ability to monitor spending. How often does the issuer send reports on spending and how detailed are the reports? Can you monitor individual employee expenditures? Can you view spending online? Can you download the reports into your accounting system? Are you able to code certain types of expenses and set limit on those expenses?

Flexibility. Can you set different credit limits for different employees? Can some employees have access to cash while others don’t?

Card acceptance. If you travel a lot, make sure to get a card that is widely accepted such as MasterCard, Visa, Discover, and American Express.

ATM. Look for a national ATM network if you or your employees travel frequently.

Comparison shopping is always a good idea. Perusing our ratings and reviews of business credit cards (includes online application links) will help to simplify this process. Good luck!

Rebecca Lindsey is a Senior Staff Writer for CardRatings.com. She began writing articles about consumer credit issues for CardRatings.com in September 2000. Her articles have been republished and/or referenced by leading publications throughout the country, including Live Well on Less Than You Think: The New York Times Guide to Achieving Your Financial Freedom by Fred Brock.

Article Source: http://EzineArticles.com/?expert=Rebecca_Lindsey