Credit Creators » Business Credit Cards

Information About Secured Business Credit Cards

admin — Thu, 07 Jan 2010 16:22:02 +0000

When you’re in business, establishing your business credit history is a must. Having a business credit history that is separate from your personal credit history opens will open more doors of opportunity for a growing business and makes business transactions so much easier. Obviously, with an excellent credit to back your company, you’ll also gain the trust of suppliers, investors and get quick approvals from lending companies.

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.

Instant Business Credit Cards – Approval In An Instant

admin — Mon, 24 Aug 2009 15:35:58 +0000

The business industry continues to flourish as more and more small businesses and homebased businesses are opened each year. With the advancement of technology, many people now have the chance to start their own small business or homebased business even with limited capital.

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

Using Business Credit Cards to Their Fullest Potential

admin — Tue, 07 Jul 2009 03:53:33 +0000

Now that you’ve made the decision to get a credit card for business, it’s time to focus on how you can use it to your advantage. Below are some practical tips on how you can get the most benefit from your small business credit car.

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.

How to Keep a Business in Good Credit Standing

admin — Fri, 23 Jan 2009 06:00:21 +0000

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.

Business Credit Cards and Personal Liability

admin — Sun, 18 Jan 2009 10:31:22 +0000

For a new business, the basis for credit card approval usually depends on the business owner’s personal credit history. By carefully reviewing your contract, you can become more aware about the personal liability clause imposed by your bank or business credit card issuer.

Personal Guarantee on Business Credit Card

The moment you sign your business credit card agreement, you become personally responsible for your business account. In case the business fails, you- the business owner is still accountable for all debts charged to your business credit card.

Business credit cards – Are They Really Useful for Business?

admin — Thu, 25 Dec 2008 06:41:25 +0000

For business owners, using the right tools for the business is as important as correct management.

What about business credit cards? Are they really necessary in running a business? As an entrepreneur, how can business credit cards be useful for you?

1. Have your own business account. Some entrepreneurs prefer to use their personal credit cards to support their businesses. However, combining your business expenses with your personal spending can be confusing especially as the company grows.

Keeping track of your business costs can become more difficult without a separate account. Applying for a business credit card is an easy way to monitor your business finances and make financial decisions more efficiently.

2. Bookkeeping made easier. Monthly statements of account can be invaluable references when doing bookkeeping tasks. These statements are itemized and categorized so you can clearly see what type of purchase was made, when the item was bought, where it was purchased, etc. Aside from the monthly statements, quarterly or yearly account summaries are also provided.

3. Build up a solid business credit history. Have you already registered with a business credit bureau? Do you already have a D & B number? If yes, then it’s to build up your business credit. Using a business credit card, you can easily build a strong and solid foundation for your business. The key to an excellent credit history is staying within your credit limit and paying off your balances on time.

4. Enjoying rewards and incentives. There are credit cards for business that offer varying rewards programs that are designed to match your business’s needs and spending. For instance, if you have multiple vehicles that you use for delivering your products, why not get a business credit card with gas rewards? By distributing supplementary cards to your driver employees, you can easily collect gas rebates and enjoy savings on your transportation budget.

5. Stretch your cash flow. By using a business credit card, you can utilize your available cash more effectively. In cases of emergencies or unexpected expenses, you can charge some of your costs to your business credit card and pay them at a later time. For instance, if one of your computers crash during the operation, you can immediately have it repaired or replaced- if necessary. This way, business operations won’t have to be interrupted just because you don’t have sufficient cash on hand.

6. Monitor your employee’s spending. Is it safe to give out supplementary credit cards to employees? Since all charges are reflected on your monthly statement, you can easily keep track of their spending. Remember, you can avoid unnecessary spending by regularly examining your statement of account.

7. Build Your Business Credit. If getting a business loan is difficult especially for newly established businesses, applying for a business credit card is easy and can help you build up your business credit.

These are the benefits that you can enjoy from getting a business credit card. Nevertheless, bear in mind that credit cards are only tools to make your management tasks easier and more convenient. Business credit cards are not meant to be a replacement for traditional business financing methods such as business loans or bank loans.

Which Business Credit Card Should You Pick?

admin — Fri, 17 Oct 2008 03:12:51 +0000

With all the credit cards for business offered in the market, which one should you pick? When it comes to reward programs, some business owners who travel a lot may prefer a business credit card with a Frequent Flyer Miles Program or a Gas Reward Program.

Nevertheless, if you’re a small business entrepreneur or a home based business owner, perhaps you’ll be interested in a credit card with cash-back or cash rebates benefits.

Cash-back business credit cards are perfect for businesses that spend a lot in buying stocks, raw materials or equipment. Since cash back credit cards reward its holders based on the amount charged on the card regardless of the type of purchase, you can surely make more points and earn your rewards more quickly.

Here, we’ve selected four major business credit card providers and we’ve taken a look at the best features they have to offer.

Not Just About the Rewards

Certainly, these business credit cards we discussed are worth taking a look. Remember not just to consider the best in each one of them, but think about how their weak points can affect you as well. Don’t forget to learn more about the terms and conditions for each credit card by personally checking out their websites.

Separate Personal and Business Finances with Business Credit Cards

admin — Tue, 30 Sep 2008 03:24:32 +0000

• If you’re a business owner, have you seriouslyconsidered applying for a business credit card?
• Do you feel that a credit card for business is really unnecessary?
• Do you prefer to use your personal credit card for your business expenses?
• Would it really make a difference whether you use a business credit card or not?

To answer these questions objectively, let’s discuss the importance of keeping your business financing separate from your personal finances.

Personal and Business – Two Different Finances

Separating your business financing from your personal financing is undoubtedly crucial. Why so? As your business grows, you would be confronted with more expenses and larger purchases. Charging all these expenses to your personal credit card would surely create confusion in the long run. It would also be more difficult to keep track of your business spending and to make financial decisions for your company.

Combining both your personal and business expenses in a single account also poses the risk of overspending. It would be very difficult to control your budget if there’s no clear boundary about which funds are for you and your family and which funds are for your business.

For this reason, even home based entrepreneurs and small business owners are also advised to take this matter seriously. You may think that using your personal credit card is okay especially during the early stages of the business. However, don’t forget to consider the long term effect this could have for your business.

Separate Your Finances with A Business Credit Card

Applying for a business credit card is quick and easy. More importantly, business credit cards are great tools for separating your business and personal finances. By using a business credit card, you can easily monitor your company’s spending by checking your monthly statement of account.

Credit cards for business provide you with monthly and quarterly/yearly account summaries. These summaries present an itemized report of all the expenses you’ve made for the entire year. Such reports are invaluable when performing your annual inventory of accounts and when filing your business taxes.

Many credit card companies also provide an online account access feature. This means you can check your business account at any time without even leaving your office. Account summaries can also be downloaded to your computer so you can use them along
with the application software you use for your accounting and bookkeeping.

Aside from these conveniences, having a business credit card is also a great way to build corporate credit. As you use your credit card with your business expenses, you also create a solid credit history for your company.

The key to enjoying good corporate credit is by keeping within your credit limit, submitting your payments on time, and using your business credit card strictly for business spending. When the time comes that you need to apply for a business loan, you can be sure that having an excellent business credit would work to your advantage.

Building Corporate Credit for Your Business

admin — Fri, 22 Aug 2008 04:03:01 +0000

If you own a business, then you’ll be interested to learn how to build a corporate credit. What are the steps you need to take to build a corporate credit? Why is it important to establish your company’s credit? Let’s discuss these two questions more closely.

What is corporate credit?

Corporate credit is used to define the credit history of a business, a company or a corporation. As the term implies, a sole proprietorship cannot apply for a corporate credit since it would too easy for anyone to declare that he/she is operating a business. To qualify for a corporate credit, a business needs to prove that it is a partnership, a Limited Liability Corporation (LLC) or a corporation.

Why is it important to have corporate credit?

As an individual, no doubt you are aware about the status of your personal credit history. Your credit history shows your track record in dealing with different creditors.

Obviously, an excellent credit rating would make you an impressive candidate for all lenders. On the other hand, a poor credit score would make you a high-risk borrower in the eyes of lenders. A poor credit would make it more difficult for you to get approved for new accounts or demand lower rates.

The same principles apply to businesses. By establishing a separate credit history for your company, you are building a solid foundation for your business. Thus, any time you need to get a business loan or a business credit card, it would be easier for you to get approved and choose lenders with the best deals.

Furthermore, having corporate credit protects your personal credit history from debt or damages in case the business doesn’t go as expected. Without corporate credit, you- the business owner- would be solely liable for all debts incurred in your business account. Failing to keep up with your payments would also affect your personal credit score. For this reason, entrepreneurs are advised to establish a separate business and personal credit history as early as possible.

How do you establish corporate credit?

Before applying for corporate credit, your business must have a valid physical address and a business telephone line. Secure all business licensing and permit requirements in your State or local region. Next, register your business with Dun & Bradstreet – a leading credit tracking agency for businesses.

See to it that all lenders and suppliers you deal with report your payments to the business credit bureaus as this is the only way to build up your corporate credit. You can also apply for a business credit card to build up your credit history more quickly. Again, make sure that your business credit card issuer regularly reports to the business credit bureaus.

Take note that your personal credit history would be checked when you apply for a business credit card. However, after a year or two, when you have built a separate credit history for your company, your corporate credit would be used for all your business dealings with lenders.

How to Make the Most from a Business Credit Card

admin — Mon, 10 Dec 2007 09:03:18 +0000

For some people the thought of owning credit cards only increases the risk of getting stuck in bad credit. This is the same notion shared by some business owners. These entrepreneurs refuse the idea of getting a business credit card, afraid that it will only bring debt problems in the future.

But the fact is, the benefits or bane of owning credit cards all depend on how the holder uses them. If you’re a business owner, it is possible for you to get the most from your business credit card without getting yourself in a bad credit situation. How? Here are the ways on handling business credit cards effectively.

Charge only what you can pay off on your due date.

Business credit cards can be an indispensable tool when you’re confronted with unexpected business expenses. For instance, when a customer makes an exceptionally large order, if one of your machines break, or if you need to buy new equipment. With a business credit card, you can push through with your business operation even when you don’t have the cash upfront. The important thing to remember is to charge only the amount that you know you can afford to pay back by the end of the month or by your due date. This way you avoid incurring additional interest charges.

Don’t use your business credit card for cash advances.

Cash advances are not included in the grace period that comes with your card. This means you instantly incur the interest the moment you took out the cash from your account. If you need cash, don’t get it out from your business credit card.

Check your account regularly.

Business credit cards today come with online account access option. This is an incredible feature business owners should take advantage of. It is a big help in your accounting and you can check on your account from your own computer at any time. Some business credit cards even let you download your account summary so you can use it along with the accounting software you use.

Distribute employee credit cards.

Most business credit cards include additional employee credit cards at no extra charge. Use these extra cards to distribute to your staff so they can make business purchases on their own. This also enables you to track exactly when the purchase was made and what type of purchase it was.

Earn your rewards.

One of the most exciting things about business credit cards is its reward programs. Take advantage of the large purchases you charge on your card by earning rewards. Thus, when choosing a business credit card, don’t forget to consider the type of reward program it offers and make sure that it will work for your business.

Build good business credit.

Use your business credit card to build an excellent credit history for your company. This can be achieved by submitting your credit card payments on time and keeping your charges below your credit limit.