A look at consolidating business credit card debt

Using your small business credit cards responsibly can help your business to grow and succeed but misuse of small business credit cards can destroy your business. There are several ways to effectively manage your small business credit cards.
1. Apply for a small business credit card at your existing financial institution. You will be further establishing a banking relationship that can help you if at some time you are in need of a line of credit or loan. The relationship already established with your lender can prove to be a big help with credit applications over $100,000 not using automated scoring systems.
2. Do not sign up for multiple credit cards to try and take advantage of deals. This can impact your credit score in a negative way and also make managing your cards more difficult. Try to keep business credit cards to a minimum.

3. Instead of paying your small business credit card at your local branch or by mailing in your payment, pay online. Paying online can save you time and extra costs.
4. When you need immediate funds use your business account debit instead of using the cash advance feature on your business credit card. This will reduce credit card fees and interest costs associated with your business credit card's cash advance feature.
5. Pay off your business credit card each month. This will help you to avoid late fees and high interest rates that can quickly grow and cost your company a great deal of money.

There are of course many advantages and benefits associated with a small business credit card that is properly managed. Some of the benefits provided by using a small business credit card include:
- You will be showing that you are serious about your business by using a small business credit card, especially to the IRS. When you mix your business and personal financial transactions you may create tax and money management problems.
- A new business can begin to build business credit by using a small business credit card. Establishing business credit can be quite useful in the future as your business grows and needs capital in the form of credit or loans.
- With a small business credit card, you can organize your bookkeeping and business records more easily. Most credit card companies provide a year-end statement summary to their customers that has all transactions itemized and categorized.
- You can lower your expenses by using your business credit card. Several credit card companies have developed reward and discount programs for small business credit card users. Some of the discounts and rewards include office supplies, travel discounts, software, and phone services.
- You can provide your employees with small business credit cards with preset limits. You will want to monitor their spending on the separate statements you receive.

If you find that you have maxed out your small business credit cards and lines of credit, do not take on more debt by taking out a business loan. You will most likely have to secure the loan with assets once the lender sees you are over-extended. It is a bad idea to take on more debt when you are already having difficulty paying your existing financial obligations. By adding more to your business' financial obligations you are gambling with your inventory, equipment, and the entire future of your business. If you find that you are way over your head and your company's finances are out of control, seek help. Many credit card companies offer services that can provide you with advice and repayment plans, but you need to contact them and let them know you want to get the debt paid just as much as they do.