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What you should know about business credit cards

Many business owners are finding that for convenience and finance management it is hard to beat using a business credit card. However, it is crucial that business owners still take the time to manage their business credit cards as diligently as the rest of their business finances. The bottom line is that despite the many opportunities that business credit affords it is still crucial to approach using credit debt with extreme caution. However, with careful management using business credit cards can be a powerful tool that can help you grow and develop your business. Here is what you should know about business credit cards-

- Business credit cards help to keep business and personal finances separate-A basic rule of good business is to keep your personal and business finances completely separate. When you mix the two you are facing a nightmare of potential tax and management issues. By having a small business credit card it also shows the IRS and your vendors that you are serious about running your business.
- Business credit cards help to provide for easy record keeping-This can be especially helpful when tax time rolls around. Because business credit card statements are most often itemized you can quickly see where you have spent your money. Some business credit cards go as far as providing a year end statement that has everything on it in categories. This way you can easily keep track in bookkeeping of your credit purchases.
- Business credit cards help to build business credit-The options to build business credit are fairly small for many business owners. Using a business credit card prudently and wisely is a good way to build business credit. This can be highly beneficial in the future should need to seek out additional debt financing or lines of credit for your business.
- Business credit cards offer special rewards-The business credit card market has become highly competitive. This has lead many lenders to offer rewards for using their business credit card. This can range from anything like a discount on office supplies, software, and phone services, to something much larger like travel rewards. Many business owners have found that by wisely using business credit cards they can lower the amount of expenses that their business has.
- Business credit cards help to manage employee spending-Most business credit cards offer preset limits on employee credit cards. This can help business owners to monitor who employees are spending. In addition, business owners can use business credit cards to manage costs which are always crucial within any business.
There are certain tips that help you maximize the use of your business credit card. These tips are-
- Go to a lender that you already know-Your best chance for getting a business credit card is probably from a lender that already knows you. If you have an established banking relationship this can help immensely.
- Don't jump from card to card-This can have a negative impact on your business credit rating and just makes managing your credit cards that much harder.
- Always pay your credit card bill online-This will help you save lots of time and money. Avoid taking the time to pay the teller at your branch and don't risk problems with your payment by mailing it in.
- Pay on time-The number one way to ruin your business credit is to make late payments. You need to make sure that you are only using your business credit card in a responsible way and that you pay it off every month. Late fees and high interest rates should be avoided at all costs.

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