Business Credit Cards and How They
Benefit Your Business
Business credit cards today provide many regular people
opportunities to start their own companies by allowing them to borrow the funds
that they may need, while separating business expenses from that of personal
charges. What a lot of business owners don’t realize, however, is that the
advantage of having a business credit card does not simply end in having an
outlet for loans. It actually provides so much more benefits that could help
the company become more organized, grow and even improve cash flow.
Convenient Source of
Funds
There are times, especially when one is just starting out in
business, wherein the company may need money for working capital or for other
emergency expenses. Even if the business owner may not always readily have the
funds at hand, having a business credit card account for the company can allow
a convenient source of cash.
More Organized
Financial Transactions and Record Keeping
When a lot of the company’s expenditures are done through
credit, this helps the company in keeping track and organizing its expenditure.
By having credit card companies automatically keep records of every transaction
done through the account and having the business owner receive a monthly
statement, the company’s work in monitoring expenses becomes less. This would
especially benefit those businesses that often entail a lot of traveling and
entertaining clients; as such situations may not always be practical to keep
recording expenses. Most importantly, easier monitoring for accounting and tax
transactions takes place.
Establishes Credibility
Using credit cards for the business can give the impression
of a more reliable method of payment, and this may even make a small business
seem more legitimate. The use of these business credits also helps establish a
company’s business credit rating, which may assist in building a trust-worthy
reputation for future investors as well as customers.
Gives Security
A certain degree of protection is given to business owners
through purchasing items for the company with business credit cards, which payments
through cash or other methods cannot offer. This is very important for
companies that often involve traveling to foreign places because a lot of
credit cards are recognized internationally. The same type of security is also
important for businesses that may require much purchasing or selling of goods
because payments done through credit cards can assure the other party that
there will always be money coming.
Gives Businesses Time
Allowance
The use of credit cards in businesses gives companies a lot
of time allowance to pay for their purchases, especially when they need the
goods in large quantities. Time is then given to the owner to pay for the
purchases, instead of having to give immediate payment that may not always be
readily available.
Consumer Benefits
Business credits also offer a lot of perks to consumers that
may cater to the many different needs of the company. Some of these bonuses may
include airline mileage or cash back that one can take advantage of in doing
business transactions and even save the company a lot of money.
Business owners today need to be practical and clever if
they want their companies to stay afloat. Business credit cards provide
companies a lot of opportunities that help in financial organization as well as
save a lot of money.
By providing businesses a convenient source of funds, an
easier record keeping, credibility, security, time allowance and a lot of other
advantages, such credit cards truly benefit and help out the business owner in
more ways than one.
Charles Colbert is a Managing Director of iSmallBiz and
ismallbusinesscredit.com, a Financial Technology Platform that allows small
business owners to obtain the best possible financing at the lowest possible
cost.
Leveraging his experience & education, Charles currently
partners with growth stage companies who are in need of creative financing
solutions to help them grow. In his
efforts to help the small business community, Charles has also created video
courses, webinars and articles to help educate entrepreneurs & CEO’s, and
guide them to success. He can be reached by telephone at 973-991-4408 by email:
charles@ismallbusinesscredit.com.
Website: www.ismallbusinesscredit.com
LinkedIn: www.linkedin.com/in/ismallbiz
Facebook Fan Page: www.facebook.com/pages/Ismallbusinesscredit
Twitter: @ChazzScot
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