Financing with Business Credit Cards
by Debbie Dragon
You've heard the saying, "You've got to spend money to make money!" This couldn't be more true, especially in business. If you want to grow your business, you're going to need a source of funds and access to cash flow - particularly when things are moving slowly.
At one time, owners of businesses had to get business credit against the things that they owned personally and based on their personal credit score. This is a major liability because if your business doesn't make it, you could lose your personal assets, too! Thankfully, there are now ways to obtain business credit that is not just an extension of what you owe personally.
If you set the business up as an official entity- separate from yourself, you can apply for various business funding, including loans or credit cards. When a business is just starting out, it hasn't had the opportunity to establish it's own credit rating yet and so lenders will have to use your personal credit report to determine the level of risk in lending to a business you own. What happens if your personal credit score is not-so-good?
You can take some steps to increase your chances of getting a business credit card (or some other form of business funding) by doing the following:
* Take steps to increase your personal score. Before you go any further looking for business credit cards or other sources of funding, do you know what your score is? Is your credit score below 640? If it is, it is recommended that you attempt to increase the score first. Often, making all of your payments on time for 3 consecutive months will pull your score up 2 to 4 points. Check with a financial advisor for some ways of increasing your credit score as it will only serve to help you personally as well as in business.
* Create an LLC or Corporation. This type of business structure automatically means the business is separate, and not just an extension of you. If you are operating a business under your name, and have not filed any official paperwork with the government or with lawyers and accountants- your business finances are no different than your personal finances.
* Have a physical address. Believe it or not, using a PO Box can hinder your ability to get a business credit card or loan! If you operate out of your home, you might consider getting a business mailbox from Mailboxes Etc, or UPS, as both offer a physical mailing address rather than a PO Box. Having a business phone line also will increase the way the business is looked at by lenders, and ensures the business is reachable.
If you are still unable to obtain business credit cards or financing on your first try, perhaps you know someone with a strong credit rating who would be willing to co-sign an application for you. You may not be able to have a business application for credit co-signed, but you can as an individual. Get a credit card in your name and then use it only for the business. Be sure to make the payments on time, and keep the balance manageable. Over time, you'll build up your personal credit score, which is seen as a boost for the business validity- and eventually you'll be able to obtain funding and credit cards under the business name.
Getting business credit cards and financing is a necessity that all businesses will face from time to time. There is a need for cash flow in order to grow and increase the business. With some careful planning and preparation, most businesses will be approved for a business credit card even if the owner has personal credit that is slightly less-than-perfect.
Showing posts with label Business Credit Cards. Show all posts
Showing posts with label Business Credit Cards. Show all posts
Monday, March 2, 2009
Saturday, February 28, 2009
How Businesses Can Play with Business Credit Cards
How Businesses Can Play with Business Credit Cards
by Pamela Williams
Using business credit cards in financing your business makes it possible for small business owners to start operations even with limited budget. Unlike large corporations who may have connections with financial institutions, small businesses usually have to rely on their own finances with regards to their business expenses. However, business credit cards can help small business thrive in the market.
Short of Cash? Not with Business Credit Cards
With the help of business credit cards, small business are able to invest on the necessary equipment, purchase raw materials or buy merchandises to get their business running. Since a business credit card allows them to get these materials in advanced without paying for them in cash, a business can still buy some time and start marketing its products before the due date of their balance ends. If the purchases are made at beginning of the credit card's cycle, a business can take full advantage of the entire grace period that it is allowed. Small business can even have the option to pay for their debts in full or in installment basis.
In addition, any business is confronted with the possibility of cash flow shortage. A business can be interrupted in the middle of its operations when a cash flow crisis arises. The production can be unexpectedly put into halt when due to the lack of materials. A certain device can break down and may need repair immediately.
These situations must always be anticipated in a business. If you have business credit card, it would be easier to purchase materials in an instant or have your machinery repaired that same day without waiting for cash. During these circumstances, a business can realize how important it is to have a business credit card in hand.
Flexibility and Other Conveniences
Aside from incredible flexibility, business credit cards are very convenient when traveling. You can take your business credit card with you on your business trips without the need to bring a large bulk of cash. If you have employees, you can issue their own business credit cards so they can just charge their expenses from their business trip on the account.
By the end of the period, you should be able to receive a summary of all transactions made on your account. This makes reimbursements a lot easier and more accurate as well. The account report on business credit cards are also especially created to make accounting tasks easier. When it's time to file for your taxes, you can find that your summary of account is a great reference for calculating your taxes.
Furthermore, being able to study your account's summary allows your business to make an objective examination regarding its finances. The detailed report of your account will give you the exact answers to these questions and help you come up with an informed decision for your business.
Is the business spending on unnecessary purchases? Are all the employee's expenses really needed for the business? Do you need to make some adjustments with regards to your business expenses?
Let's not forget the Rewards
With all these advantages mentioned, the opportunity to earn rewards and incentives can not be left unmentioned. Business credit card companies provide rewards programs for all their business credit card holders. And because businesses usually spend in bulk and in large amounts of purchases, they also get to earn rewards more quickly and more frequently than personal credit card holders. So if you're in a business, shouldn't you benefiting from business credit cards?
by Pamela Williams
Using business credit cards in financing your business makes it possible for small business owners to start operations even with limited budget. Unlike large corporations who may have connections with financial institutions, small businesses usually have to rely on their own finances with regards to their business expenses. However, business credit cards can help small business thrive in the market.
Short of Cash? Not with Business Credit Cards
With the help of business credit cards, small business are able to invest on the necessary equipment, purchase raw materials or buy merchandises to get their business running. Since a business credit card allows them to get these materials in advanced without paying for them in cash, a business can still buy some time and start marketing its products before the due date of their balance ends. If the purchases are made at beginning of the credit card's cycle, a business can take full advantage of the entire grace period that it is allowed. Small business can even have the option to pay for their debts in full or in installment basis.
In addition, any business is confronted with the possibility of cash flow shortage. A business can be interrupted in the middle of its operations when a cash flow crisis arises. The production can be unexpectedly put into halt when due to the lack of materials. A certain device can break down and may need repair immediately.
These situations must always be anticipated in a business. If you have business credit card, it would be easier to purchase materials in an instant or have your machinery repaired that same day without waiting for cash. During these circumstances, a business can realize how important it is to have a business credit card in hand.
Flexibility and Other Conveniences
Aside from incredible flexibility, business credit cards are very convenient when traveling. You can take your business credit card with you on your business trips without the need to bring a large bulk of cash. If you have employees, you can issue their own business credit cards so they can just charge their expenses from their business trip on the account.
By the end of the period, you should be able to receive a summary of all transactions made on your account. This makes reimbursements a lot easier and more accurate as well. The account report on business credit cards are also especially created to make accounting tasks easier. When it's time to file for your taxes, you can find that your summary of account is a great reference for calculating your taxes.
Furthermore, being able to study your account's summary allows your business to make an objective examination regarding its finances. The detailed report of your account will give you the exact answers to these questions and help you come up with an informed decision for your business.
Is the business spending on unnecessary purchases? Are all the employee's expenses really needed for the business? Do you need to make some adjustments with regards to your business expenses?
Let's not forget the Rewards
With all these advantages mentioned, the opportunity to earn rewards and incentives can not be left unmentioned. Business credit card companies provide rewards programs for all their business credit card holders. And because businesses usually spend in bulk and in large amounts of purchases, they also get to earn rewards more quickly and more frequently than personal credit card holders. So if you're in a business, shouldn't you benefiting from business credit cards?
Tuesday, February 24, 2009
Business Credit Cards Benefit Businesses of All Sizes
Business Credit Cards Benefit Businesses of All Sizes
by Liz Roberts
A business credit card is good for every business. Whatever size of business you are running, you can be glad that there's a business credit card that will work for you. Business credit cards are not just limited for large companies. In fact, because of the increase in the number of small and medium-sized businesses, credit card companies have specifically came up with small business credit cards that are tailor-made for smaller enterprises and for those companies who are just starting up in the industry.
Not Your Ordinary Credit Card
A credit card for small business is not just an ordinary credit card which you can use to make purchases in advance. Credit cards for small business have special features that a business can greatly benefit from. With the help of a small business credit card, a newly opened business can slowly but surely move towards growth and expansion.
If you need to purchase equipment or you need to buy supplies for your business, you may conveniently do so using your small business credit card. This allows you to get the items you need in advance, and pay them in full or installments at a later date. You may also use your small business credit card at shipping services to deliver goods to your customers at a discounted price.
Regardless of the size of your business, you will be confronted with accounting and bookkeeping tasks. With a small business credit card, you can be assured that all purchases you've made for the entire period are accurately recorded in your account's billing statement. A business credit card's statement of account is always detailed and categorized according to the type of purchases made. This makes your inventory and accounting tasks easier especially with regards to your preparation of filing and paying taxes.
Special Features
Different business credit card companies offer various features and advantages for their clients. Thus, depending on the type of business that you have, you may choose to obtain the business credit card that is most suitable for your needs.
For instance, the American Express Business Gold Card offers a free annual fee for the first year while the Blue Cash for Business Credit Card offers a 0% introductory APR for six months without annual fees. Each one offers reward programs and partnerships with DellTM, Staples, Kinko's and other merchants so that you can avail of discounted rates every time you use your business credit card to purchase from these affiliates. Both of these credit cards also offer an instant approval by submitting your credit card application on line.
These are just two examples of business credit cards but you can find many choices of different business credit cards by checking out the internet. Don't just settle for the first business credit card you see even if the offer already seems great. Visit websites that provide reviews for small business credit cards so you can immediately see the differences of the rates and charges that you're being offered. If you don't find better rates, you can always go back to that first credit card you considered and apply.
by Liz Roberts
A business credit card is good for every business. Whatever size of business you are running, you can be glad that there's a business credit card that will work for you. Business credit cards are not just limited for large companies. In fact, because of the increase in the number of small and medium-sized businesses, credit card companies have specifically came up with small business credit cards that are tailor-made for smaller enterprises and for those companies who are just starting up in the industry.
Not Your Ordinary Credit Card
A credit card for small business is not just an ordinary credit card which you can use to make purchases in advance. Credit cards for small business have special features that a business can greatly benefit from. With the help of a small business credit card, a newly opened business can slowly but surely move towards growth and expansion.
If you need to purchase equipment or you need to buy supplies for your business, you may conveniently do so using your small business credit card. This allows you to get the items you need in advance, and pay them in full or installments at a later date. You may also use your small business credit card at shipping services to deliver goods to your customers at a discounted price.
Regardless of the size of your business, you will be confronted with accounting and bookkeeping tasks. With a small business credit card, you can be assured that all purchases you've made for the entire period are accurately recorded in your account's billing statement. A business credit card's statement of account is always detailed and categorized according to the type of purchases made. This makes your inventory and accounting tasks easier especially with regards to your preparation of filing and paying taxes.
Special Features
Different business credit card companies offer various features and advantages for their clients. Thus, depending on the type of business that you have, you may choose to obtain the business credit card that is most suitable for your needs.
For instance, the American Express Business Gold Card offers a free annual fee for the first year while the Blue Cash for Business Credit Card offers a 0% introductory APR for six months without annual fees. Each one offers reward programs and partnerships with DellTM, Staples, Kinko's and other merchants so that you can avail of discounted rates every time you use your business credit card to purchase from these affiliates. Both of these credit cards also offer an instant approval by submitting your credit card application on line.
These are just two examples of business credit cards but you can find many choices of different business credit cards by checking out the internet. Don't just settle for the first business credit card you see even if the offer already seems great. Visit websites that provide reviews for small business credit cards so you can immediately see the differences of the rates and charges that you're being offered. If you don't find better rates, you can always go back to that first credit card you considered and apply.
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