A Variety of Reward Programs to Choose From

The most popular rewards for business credit cards are Gas Rewards, Cash Back and Travel Rewards.  If your business requires you to take frequent trips around the country and abroad, you should definitely take advantage of the benefits a travel reward business credit card offers.

On the other hand, if you own a number of vehicles used officially for business, acquiring a business credit card with gas rewards can enable you to save more from you gas expenses.  Keep in mind that you can distribute supplementary credit cards or employee credit cards so you can collect more points as your drivers use their credit cards each day.

If the nature of your business is buy and sell, a cash back reward business credit card can be your perfect partner.  As you use your business credit card to buy supplies or stocks on a regular basis, you can rack up more points at a much faster rate.

The number of points you can earn and the type of reward you can get will vary depending on the type of business reward credit card you choose and the issuer.  The rules tend to vary from one credit card company to the next so you want to take the time reading and understanding the fine print.

If you’re ready to apply for a business credit card with rewards, consider the following tips for you:

Choose a card that complements your business.  As mentioned above, not all reward credit card programs are the same so you want to look for a business credit card that will match your own business.

Check the requirements before signing up.  Some reward credit cards for business require excellent credit history so even if you have an average rating, your application may get declined.  To avoid unnecessary rejection, check the prerequisites first prior to submitting your reward credit card application.

Understand the reward system.  You should be well aware of the rules on collecting points and redeeming rewards.  Some business credit cards only give points on “qualified” purchases or on selected transactions so although the reward offered is quite bigger than what other credit cards offer, you want to make sure that you can follow the rules.

Use your reward business credit card for business only.  It might be tempting to use your business reward credit card on personal purchases to rack up more points but this isn’t encouraged.  A business credit card can help you keep track of your company’s spending for each period and if you’re going to combine personal transactions, you will be making things complicated for your business accounting.

Managing small business finance can be a challenge especially for new entrepreneurs.  In this article, we present tips on how you can establish business credit and organize your finances more effectively.

1. Register with Dun & Bradstreet.  It’s important to establish a separate business credit history for your company. Register with Dun & Bradstreet, a business credit bureau and find a lender or a credit card company that reports to a bureau.

D&B’s Data Universal Numbering System is a widely recognized system used by registered businesses and companies in the US.  You can apply for a D-U-N-S® Number by submitting an application form from D & B’s website.

You can also apply for D-U-N-S Registered™ logo for your business website.  Having the D & B’s official logo will add up to your company’s credibility and authenticity, especially if you are a newly established business.

2.  Apply for a business credit card.  Having a credit card account that is exclusively for business is an efficient way to build business credit score.  As you use your small business credit card to pay for business expenses, you are also building up your business credit score.

It is technically easier to acquire a business credit card than a business loan.  If you are a start-up entrepreneur, you can still get approved for a small business credit card if your personal credit history is in good standing.

You can also apply for a secured business credit card since approval for this type of account is not based on credit history, but on the cardholder’s capability to provide a security cash deposit.

3.  Ensure credit reporting service.  When choosing creditors and suppliers to do business with, make sure that your payments will be accurately reported to a business credit bureau.  Most importantly, pay off your bills on time to build good credit.

Another crucial strategy to boost your business credit rating is to keep your credit usage minimal.  Make it a point to pay your monthly credit card balance in full not just to avoid interest rate charges but to protect your business credit as well.

4.  Apply for a business loan.  After a few months to a year of building business credit score, you should be able to get approved for a business loan more easily.  Keep in mind that small business credit cards can be used as tools for short-term business expenses.

This does not mean, credit cards can complete replace business loans.  For bigger projects that require larger financing, it is best to acquire a traditional loan from a reputable lender.

Most banks and lending companies strictly require a solid business credit standing so if you are a new business, your application may get declined.  However, if you can show an impressive credit score, a business loan provider would have more confidence in your capability to manage debt and credit.

As soon as you get approved for a business loan, be sure to submit your monthly payments on time.  By doing so, you also continue to improve your business credit history and business credit score.

1. Separate personal and business finance. Combining personal and business finance is not good at all.  In fact, business owners are strongly advised to keep their personal and business accounts separate, to ensure effective management and avoid complications.

By applying for a business credit card, you can have a separate account used only for official business expenses. This way, you can keep track of your business spending easily, pay down your charges on time, and avoid overspending.

2. Establish and build business credit. Issuers of personal credit cards do not report to business credit bureaus.  Thus, the only way you can establish business credit history and business credit score is to acquire a business credit card that reports to D&B, a business credit tracker.

Remember that not all credit cards advertised as business credit cards offer credit reporting.  So before signing up your application, you should ensure that your payments and account activities will be reported to a major business credit bureau.

3. Easier Accounting and Bookkeeping.  Business credit card issuers send quarterly or yearly account summary reports.  Entrepreneurs can use these detailed and accurate reports to review all transactions they made for the entire year.

Some issuers allow their cardholders to download these reports from the internet so they can be used with a business accounting software.  By using these reports as references, you will be able to prepare your business tax files with no hassle.  More importantly, you can easily determine which of your business expenses can qualify for tax credit or deduction, making sure that you won’t miss out these savings.

4. Get rewarded for your spending.  Some credit cards for business offer reward programs such as cash back, gas rewards, travel rewards, and others.  Each time you pay a bill with your business credit card, you also earn points which can be redeemed for cash, rebates, gift checks, and other rewards.

Since business owners are typically confronted with big expenses, you can earn more by using a business credit card with rewards.  You can also enjoy exclusive discounts from selected business-to-business merchants and suppliers that are affiliated with your credit card…

5. Supplementary cards for employees. Do you have employees? If yes, you can distribute supplementary credit cards to selected employees so they can simply charge official business expenses to your account.  For example, if one of your machines need repair, your employee can quickly call for repair service and use the supplementary credit card to pay the bill.  By distributing employee credit cards, paperwork can be minimized and unnecessary delays with the business operations can be avoided.

One such tool for business financing is the business credit card.  These credit cards are especially designed with features and services which can benefit business owners.  On this post, let us discuss the specific functions of business credit cards and how you can use it for starting a business:

Business Credit Card Features

Higher credit limit.  Using your personal credit card for business expenditures can hurt your credit score especially if you often max out or exceed your limit.  Meanwhile, credit cards for small businesses have higher credit limit so they can be used for larger purchases.

Yearly account summary.  Issuers of business credit cards provide annual account summary reports so you can review all your previous transactions for the entire year.  The yearly account summary report is also great reference in preparing business taxes since you will be able to distinguish which of your purchases are eligible for tax credit and deductions.

Savings and discounts.  Business credit cards are affiliated with vendors and suppliers so cardholders can enjoy exclusive discounts from their purchases.  You can even choose business credit cards with rewards to get more out your spending.

Start a Small Business with A Credit Card

How can a business credit help you in starting your company?  Consider the following points:

Purchase equipment.  Using cash to buy new or used equipment can eat up a large portion of your capital.  You can use your business credit card to get equipment that you need to start-up your business operations such as computer, cash register, fax machine, etc.

Many credit cards offer deferred payment option so you can pay back your charges in instalments at a low rate.  In fact, you can even find business credit cards that offer zero interest rate for 6 months or longer so you can have the chance to pay your debts without interest.

Pay your charges in full and on time. The same rule applies for personal credit cardholders and business credit cardholders. You can truly save a great deal of money if you will pay your monthly balance in full and on time.

Build business credit.  Credit cards for business are great tools for establishing and building business credit history.  Look for an issuer that will report your payments to major business credit trackers like Dun & Bradstreet and Experian (business).  This way, your activities will be reported as you use your business credit card to meet business costs.

Watch your credit limit.  Be careful not to max out or exceed your credit line as this may inflict damage to your business credit score.  You might also be charged with a penalty fee for exceeding your limit.  To avoid going over the limit, check your balance first plan your purchases in advance before using your business credit card for payment.

Advantages of Using Business Credit Cards

Quick and simple.  It is generally much easier to get approved for a business credit card than a business loan.  The process of applying for a loan can last for weeks or even months.  If you own a start-up business, it may even be a lot more difficult to get approved for a loan.  On the other hand, you can get a credit card for business within a week and use it immediately to pay for your company’s expenses.

Convenient.  When you use a business credit card to pay for bills or purchases, it is much easier to keep track of your spending.  This is because each item is reflected in your statement of account.  Aside from monthly billing statements, issuers of business credit cards also send annual reports so you can review all your previous expenses for the whole year.  In fact, you can use your annual summary of account as a reference in preparing your business taxes.

Easy to Manage. If you have employees, you can distribute supplementary credit cards to some of your staff.  This way, they can charge business-related expenses to your account without the need to go through a long process.  Since charges will be reflected to the primary cardholder’s account, you will be able to monitor your employee’s spending.

Disadvantages of Using Business Credit Cards

Rates and fees.  The biggest disadvantage of financing a business with a credit card is the extra charges.  If you fail to pay your full balance on time, you will be subjected to pay the interest rate.  Consequently, if you miss your due date of payment, you will also incur a late penalty fee.  These extra costs can be burden especially when you have a limited budget.  Therefore, business owners who use business credit cards for financing should do their best to avoid these charges by paying their balance in full and on time.

Low limit.  The credit limit available to business credit cardholders are limited compared to traditional business loans.  This is especially true if you own a secured business credit card.  Secured credit cards require the submission of cash deposit which also determines the range of your credit limit.  For instance, if you submitted $500 cash deposit, your credit line is also limited up to $500 only.  If you are confronted with large expenses, a business credit card will not be sufficient.

Risk of debt build-up.  Business owners who use credit cards for financing should be wary against the possibility of overspending. Since you can easily charge expenses to your credit and worry about repayment later, poor management may result to debt build-up.  Due to the high rates and fees, careless spending can easily lead to bad credit.

Choose a low rate card.  Just as it is important to choose a personal credit card with a reasonable interest rate, you should also choose a business credit card with a low APR.

Pay your balance in full.  Paying your monthly balance in full enables you to save money by eliminating the interest rate fee.

Pay on time.  It’s very important to submit your payment on or before your due date, not just to avoid the late fees but to protect your business credit history as well.

Ensure credit reporting.  Sign up with D&B to start building business credit history.  Make sure that your chosen issuer reports to the major business credit trackers like Dun & Bradstreet and Experian (Business) as it is the only way you can build business credit.

Don’t take out cash advances.  Although small business credit cards are equipped with cash advance features, cardholders must avoid this option as much as possible.  This is because cash advance transactions are not covered by the grace period so you are automatically charged with interest rate the moment you withdraw cash from the ATM.  Furthermore, most issuers charge a higher rate on cash advances.

Use a business credit card for short-term financing.  Business credit cards can be used to cover for short-term expenses.  For instance, if one of your machines need repair, you can charge the service fee to your business credit card to avoid delays or interruptions with your operations.  However, for long-term business costs, the traditional method of business financing is still recommended.

Combine credit card financing with leasing.  If you have a small capital, you can use different business financing methods to meet your needs.  For example, instead of using your business credit card to buy new or second-hand equipment, why not apply for a business equipment lease?  By leasing equipment, you can obtain the equipment you need right away and pay for it in small instalments.  This leaves your business credit line free so you can reserve it for emergency expenses.

Earn rewards from your spending.  If you can pay your monthly charges in full, consider acquiring a reward business credit card.  Popular reward programs for business credit cards include Cash Back, Gas Rewards, and Travel Rewards.  Look for a reward program that fits the needs and spending style of your business.  Also, choose a reward credit card that is affiliated with merchants and suppliers that your prefer.  This way, you can enjoy exclusive discounts and earn bigger rewards out of your spending.

For a newly started business, Secured Business Credit Cards are a big help in establishing your business credit history. Here some basic pointers about secured business credit card that you should know.

Read more Information about Secured Business Credit Cards

In response, banks and financial institutions have also introduced a number of ways to provide financial assistance to aspiring business owners. One such tool that is truly designed to help small business entrepreneurs is the small business credit card. Today, one can find instant approval business credit cards which literally grants quick and easy approval for those who need additional business funding.

Continue reading Instant Business Credit Cards – Approval In An Instant

Use your business credit card to build a positive business credit. Establishing and building up a separate credit history for your company would be a lot easier when you have a small business credit card account in your name. Establishing business credit early is important as this prepares your business for future growth.

Use your business credit card exclusively for business purposes. A small business credit card is meant to be a tool for easier management of the business. Nevertheless, some entrepreneurs can make the mistake of using their business card for personal expenses such as dining or shopping. Remember that you can minimize the risk of bad debt if you’ll be discreet with the use of your business credit card.

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Pay off your monthly balances in full. The best way to protect your business credit from negative marks is to pay off your balances in full. Another advantage of paying your entire balance is that you can save from the additional interest rate costs.

Stay below your credit limit. Even if you enjoy a higher credit limit, financial experts recommend not using more than 40% of your allotted credit line. It doesn’t matter whether your credit card offers a low APR. Bear in mind that maximizing your credit limit can affect your business credit rating.

Keep track of your expenses. Use your business credit card to keep track of your business spending more quickly and conveniently. Make use of the online account access feature and the yearly account summaries provided by your business credit card.

Use your account summary with your accounting and bookkeeping. Issuers of credit cards for business provide quarterly and yearly account summaries which can be downloaded and used along with your accounting software. Use this feature to your advantage especially when it’s time to file for your business taxes.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

When it comes to managing a small business, enjoying a good credit standing is important. This article talks about tips on how you can your business credit in great shape:

Apply for a business credit tracker. Experian (business) or Dun & Bradstreet are two major business credit trackers in the industry. Check out their websites and register for a business credit report now.

Pay your suppliers on time. As soon as you’ve registered with a business credit reporting agency, find suppliers who will report your payments to the bureaus. Submit your payments on time at all times.

Check the licensing of your business. Secure all necessary registrations and licenses required by your State.

Apply for a business credit card. Business credit cards are effective tools in building a solid credit history. Take note that your personal credit history would be checked in the absence of a business credit.

Don’t apply for too many business credit cards. One business credit card should be enough to help you handle some of your business expenses. Avoid the risk of bad debt by using only the business credit card you need.

Pay your business credit card balances in full. The best way to manage business credit cards is to pay your monthly balances completely. This eliminates debt build-up and enables you to save from additional fees like late fees and interest.

Keep track of your finances. Many small business credit cards provide an online account access along with quarterly or annual account summaries. Use these tools to monitor your business expenses.

Keep your financial records. Receipts, billing statements, and other written financial reports be kept and filed in a safe place for your reference.