The Business Credit Card – Using It Properly!
There is nothing worse in a small business than losing tract of your expenses. Even small expenses over a month’s time add up.
Keeping a daily journal takes your valuable time away from your business and puts it into boring administrative tasks.
The business credit card is the answer. It solves so many problems at once and more, your recordkeeping is done for you, automatically.
How to Get a Business Credit Card
There are many sources that will provide a business credit card.
These are banks, credit organizations (as American Express) and large companies that have private label cards.
Getting a card is easy today and fast. If you business is new and you have no sufficient credit history (or a damaged one), you can create a debit card.
The important thing in this case is to have a business card to;
Why Have A Business Credit Card?
Having a business credit card can accomplish much for the small to medium-sized business person. It will:
Maintain adequate records of all purchases.
Separate your personal charges from the business ones.
Make you and your business eligible for discounts and various promotional advantages.
Protect you from sales fraud (as your credit card purchase can be refunded at your demand if you deem to have been defrauded by an unscrupulous merchant)
Enhanced your credit standing if your card payments are always on time and correct.
Save you money, if you pay for your purchases in the 30 day payment cycle, you pay no interest.
Provide you group insurance options.
Which is the Best Business Credit Card?
This is an academic question, and depending on your own criteria you will be able to discover.
Some cards offer extended payment options, and if you are cash short, the extra credit is important. Some cards offer high over-draft limits, but are expensive.
Other cards, like the Amex, will be not a true credit card, but is a hybrid between credit and debit cards.
The company has many plans, but basically you are obliged to repay whatever you buy during the next month’s payment cycle, and this will be interest-free.
Some issuing banks have tailor-made programs for business credit cards, and thus you need to investigate carefully the options they provide.
Damaged Credit and the Business Credit Card
In today’s world of business and commerce, one’s credit rating is very important, and must be protected at all costs.
Your prompt and accurate repayment on your business credit card is all important. You cannot be too protective of your credit history.
In case your business starts doing poorly, you must NOT use your business credit card as a temporary lifeboat.
It will only damage your credit rating and history more if you business fails. These histories follow you, at least for a long enough period to be very harmful.
A business credit card can save you time and money if used correctly and can be a valuable asset to your company.
Business card terms differ between banks so make sure you shop around for the best deal and use it wisely.
Sacha Tarkovsky
http://www.articlesbase.com/strategic-planning-articles/the-business-credit-card-using-it-properly-70539.html
Lie on Credit Card Application – Age 17 [Business Reasons]?
Hello.
I am currently 17, and I am in need of a line of credit.
I make around 3K~/month before taxes.
I do some business on and off the internet, and my business has to stop for like half the month while I collect revenues, since I can not continue business because I run out of funds!
I run my advertising campaigns for like 10 days, and run our of funds! This stops all revenue from my campaigns, and I have to wait around 30 days to get paid, and this is really hurting me as I can really be growing.
I do not want a co-signed. I do have a checking and savings account along with a debit card as my mother co-signed.
However, I was wondering if I could just lie? I will be paying my balance in full every month, and it will not be for personal charges. I know this is unethical, but I know how to properly use credit.
So I don’t care about high interest rates as this won’t effect me.
I do not want unsecured credit cards, I need an actual line of pure credit!
Thank you for any information you may have!
Just a 2K Limit would be great, as I could push some more revenue, and I could work something out with my advertisers to pay my bi-weekly or something.
I just need this credit to help with my cash flow.
I don't have a co-signer. I would ask my mother, but she doesn't understand people use credit for leverage, how to investment, and just making money work for you, rather you working for money.
I have no other options. I already have income flow, I just want to keep this cash for continuous.
I see people lie all the time and get credit cards and make charges, of course they were e personal, and just teens who wanted to buy things at the mall.
I am able to pay my balances money with my profit.
So it's not that I won't be paying my bill, etc.
Look into other options ..even a simple lie on a credit/loan application is fraud and is NOT a good way to start in business
References :
Starting off your credit history by committing fraud is always a bad idea. Especially if you are planning on keeping your business long term, you need to start off on the right foot. Have your parent cosign for you now and then open a new card when you are 18. Then you can close the cosigned card. It is less than a year until your birthday (probably about 6 months, right?) It is better to do everything “by the book” and legally so that you don’t trash yourself and your business with a stupid decision.
References :
You are making THREE THOUSAND A MONTH and you can’t budget for ADVERTISING?
it would seem what you REALLY need is better management of your cash flow and simply getting a credit card is not going to to be the answer
References :