An Unbiased Review Of Business Credit Cards

Using a Business Credit Card for Business Financing

2010-12-18T22:54:00.000-08:00

You can use a business credit card to buy office equipment such as computer, printer, copier, fax machine, etc. A business credit card can also be used to purchase supplies or to pay your office lease or commercial lease space. By charging these purchases to your credit card, you can have the chance to pay in installments rather than cash.

In fact, some business credit cards may offer zero percent introductory rate which means you can pay down your balances within the next few months without incurring interest rate. The introductory period can last for six 12 months or longer, depending on the issuer.

Using a small business credit card is also a great way to establish and build business credit history. However, you should choose a business credit card that will report your payments to a major business credit tracker like Dun & Bradstreet. Take note that not all credit cards advertised as business credit cards may offer credit reporting provision.

It’s also important to understand that credit reporting agencies for consumers are completely different from the business credit bureaus. To build a separate business credit history, you must register your business with a business credit tracker.

Another advantage of using a business credit card for payment is that all your transactions are recorded so that you can easily keep track of your business spending. Issuers of credit cards for small business also provide quarterly or annual report which can be used as accurate references in your yearly inventory or in preparing your business taxes. It would be easy to determine which of your expenses are qualified for tax credit or tax deductions based on your business credit card summary report.

There are also a number of business credit cards with varying reward programs. These reward programs are especially designed for businesses so that you can earn incentives and savings from your business spending. By choosing a reward credit card that fits your business’s demands, you can save a great deal of your working capital and enjoy exclusive perks and privileges as well.

Why is it Essential to Build Business Credit?

2010-10-30T19:49:00.000-07:00

A business credit card is not a primary requirement in starting business. Nevertheless, it is surely a great tool that business owners can use to manage business finances. Some business owners might feel hesitant to apply for business credit card and decide to use a regular credit card instead. In this article, we enumerate some of the advantages of using a credit card designed especially for small business.

Separate business and personal finance. A business credit card is essential in separating business and personal finances. By using a business credit card for business-related expenses, it would be easier to keep track of your spending and make financial decisions for your company.

read more: Why is it Essential to Build Business Credit?

Important Points About Business Credit Cards

2010-10-20T22:51:00.000-07:00

It is true that using credit cards for business brings many advantages especially for new or start-up businesses. First, it is a great tool to build your business credit history with. Second, it enables the business owner to separate business from personal finances. In addition, special features and functions that only business credit cards offer can help an entrepreneur in managing business finances more easily.

Nevertheless, the risk of bad credit looms for those who cannot manage their accounts correctly. Based upon experiences, some business owners found themselves stuck in bad debt as a result of poor credit card management. How can this be avoided? Let’s discuss some important pointers for business credit card holders:

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Important Facts About Business Credit Card

2010-10-06T00:15:00.000-07:00

Changes made to the credit CARD law are only applicable to personal credit cards. For business credit cards, most of the provisions do not apply. For this reason, business owners who use business credit cards are advised to be more careful on how they use and manage their credit card accounts.

In this post, let’s talk about the basic facts that owners of business credit cards or those who plan to get one must understand. First, let’s talk about the risks and then we will consider the advantages.

The Positive and Negative Side of a Credit Cards for Business

2010-09-29T11:37:00.000-07:00

If you are a small business owner, perhaps you may be considering the possibility of using business credit cards to finance your company. Some entrepreneurs may recommend business credit cards while others may say that it’s completely unnecessary. So, how would you know whether or not it’s suitable for your own business?

In this post, we present the pros and cons of using credit cards for business to give you a better insight on the issue.

The Pros Of Business Credit Cards

Ease of application. Undoubtedly, it is much easier to apply for a business credit card than to acquire a loan. Application can be done online and approval usually takes just a few minutes. The criteria of eligibility are not as strict as compared to business loans. In fact, you can instantly get approved even if you are a new or start-up business if you have impressive personal credit history. On the other hand, if you have poor credit, a secured business credit card is always an option.

Take a Look at Secured and Unsecured Business Credit Card

2010-09-16T01:55:00.000-07:00

Having good credit history is certainly an advantage when applying for new credit. The same thing is true for business owners who want to obtain a business credit card. There are actually two types of credit cards for business – Secured and Unsecured Business Credit Card. In this post, we will discuss what each of these business credit cards have to offer and how you can choose the right one for you.

The Non-secured Small Business Credit Card

Any small business with good personal credit can easily get approved for a business credit card. Even if you have just started up your company and have yet to build business credit, getting approved should not be a problem. In fact, using a business credit card is a great way to build your corporate credit as long as you pay your balances on time.

read more: Take a Look at Secured and Unsecured Business Credit Card

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New Business Credit Cards and Its Benefits

2010-09-07T07:00:00.000-07:00

If you are a new business owner or you have plans to start your own business, this article presents benefits that using a business credit card can bring you.

Detailed report. Apart from the statement of account sent at the end of each month, you will also receive a yearly account summary report from your business credit card company. The report will contain the details of all credit card transactions made for the previous year including the date the purchase was made, the type of purchase, the amount of charge, etc. You can use this summary as an accurate reference when preparing your business tax forms so it would be easy to distinguish which among your business expenses qualify for tax credit or tax deductions.

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Building Small Business Credit Properly

2010-08-26T08:42:00.000-07:00

A lot of business owners need financial support. However, most of them want access to loans that do not require collateral. If you intend to apply for a business loan, one basic requirement that you need to prepare for is good credit, especially if you want to acquire an unsecured business loan.

If you are an established business, it’s crucial to have a solid business credit to back up your loan application. Due to the absence of collateral, most lenders will only extend an unsecured business loan if you have an impressive business credit.

read more: Building Small Business Credit Properly

related source: Credit Card Business

How Paydex Score Helps Your Business Financing

2010-08-03T00:16:00.000-07:00

If you own a business, you should be interested in learning about Paydex Score and how it can affect your business. What is a Paydex Score? How can you keep your Paydex Score in an excellent standing? Is it really important to keep your Paydex on a high level? What can you do to improve your business credit? Let’s answer these questions one by one.

Your Paydex Score Helps Your Business Financing
You may already be familiar with your personal credit report and how your credit score is calculated. For business owners and enterprises, the Paydex is the equivalent of your personal credit score or better known as FICO score. If you’ve already signed your business with Dun & Bradstreet (business credit bureau), you are already building a separate credit history for your business.

Your Paydex Score is the number you get from Dun & Bradstreet. This score is included in your business credit report for your prospective creditors to see. A Paydex score ranges from a low of 80 to a high of 90 to 100. Meanwhile, a score of 70 and below are considered as poor and sends out a negative impression to lenders.

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Choosing the Right Business Credit Card For Your Business

2010-07-26T01:55:00.000-07:00

Finding a credit card that suits your business can be a daunting task. With a long list of business credit cards available in the market, choosing one can be confusing. How can you choose a card that matches your business? What important factors should affect your choice? What particular features of a business credit card should you look for?

Comparing Small Business Credit Cards

Unlike corporate cards, credit cards for small businesses involve a less complicated process. Small business credit cards are easily available online and you can in fact, get an approval within minutes after submitting your application. The internet is also a convenient tool in comparing different credit card, particularly the ones offered for businesses. You can also read reviews from credit card review websites to learn more about what each card offers.

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Business Credit Cards or Personal Cards, Which is Better?

2010-07-20T20:28:00.000-07:00

As more people try to start up their own small businesses to survive the economic slump, credit card companies try to improve the features and functions of credit cards for business to attract more cardholders. In the past years, business credit cards were only offered for larger corporations but today even small enterprisers and home based business owners have the opportunity to use them.

Some people may think that they don’t need to apply for a small business credit card since they already have their personal credit cards anyway. However, if you are running a business, there are advantages to using small business credit cards. Keep in mind that certain features are not available to personal credit cards. In this article, let’s take a closer look at what the benefits are.

read more: Business Credit Cards or Personal Cards, Which is Better?

First Business Credit Card Application

2010-07-06T20:17:00.000-07:00

So you’ve finally decided to get a business credit card. Yes, business credit cards are great tools for managing your business finances. However, don’t forget that not all credit cards in the market are as promising as they seem to be. It is up to you to find the right credit card that matches the needs and spending style of your business. In this article, let’s discuss the steps you need to do before applying for your first business credit card.

Check your credit.

Check your credit report and see whether your credit rating is enough to get approved for the best business credit cards in the market. If you don’t have a corporate credit, your personal credit history would be used. Do you think you can improve your credit score? Remember, a high credit score would give you more power in choosing a credit card with the lowest rates and best deals.

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Business Credit Card Myths

2010-06-04T08:39:00.000-07:00

Some business owners thought that credit cards is bad for businesses but it's not at all. Check these most common business credit card myths and the truth about them.

There are business owners who may have a negative notion about credit cards for business, thinking that using business credit cards is really not necessary or that using one will only lead to bad credit. But in reality, benefitting from a business credit card depends on how the cardholder makes use and manages the account. Listed below are some of the most common business credit card myths and what you need to know about them:

Credit cards for business have expensive fees. Some business credit cards may come with expensive charges but if you do your research well, you should be able to find credit cards for small business with reasonable interest rate, low fees, and great provisions.

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The Benefits of Credit Cards For Business Owners

2010-05-31T08:33:00.000-07:00

One of the efficient way of building credit is by using a business credit card. Read more through this article to out these benefits one by one.

If you are a business owner, applying for a business credit card is definitely recommended. What are the benefits of having business credit cards? How can credit cards improve your business? In this article, we’ll discuss the advantages of small business credit cards and some pointers on how to choose the right one.

read more: The Benefits of Credit Cards For Business Owners

Practical Tips in Choosing a Credit Card thats Best For Business

2010-05-20T18:58:00.000-07:00

Hard to find the right card for your business? Check this article on how to find the best business credit card for profit.

With so many credit cards for business in the market, picking out one may not be an easy task. In this post, let’s talk about practical tips on how you can choose a credit card that best matches your business.

Consider your primary needs. If you are in a business that requires you to travel a lot, perhaps you ma consider getting a small business credit card with Frequent Flier Miles Rewards. This way, you can maximize your travel costs by getting bonuses, special privileges, and the chance to fly for free.

read more: Practical Tips in Choosing a Credit Card thats Best For Business

Important Tips for Business Credit Card Owners

2010-05-17T19:06:00.000-07:00

Proper management of a business credit card may result to benefiting more from it. Check this important tips of using business credit cards for business owners.

We often hear the advantages of using business credit cards for business. But the benefits you earn also depend on how well you use them. This article contains useful business credit card tips that are especially meant for business owners like you:

1. Apply from your personal bank. Getting a business credit card from your personal bank can give you a faster approval with your application. If you haven’t yet established your business credit, your personal credit history will be used instead. Applying with bank who has had you as client for a long time will work well in your favor.

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Using Business Credit Cards for Business Expenses

2010-05-14T09:05:00.000-07:00

Having a business credit card to take care of your company’s needs is one thing you should consider. Check out these tips on how business owners can use business credit cards to their advantage.

Regardless of the type of business you own or how long you have been in operations, getting a real credit card for business is a must. True, you cannot finance an entire business using only business credit cards, but they can be wonderful back-up to cover for monthly expenses or unexpected needs, particularly when cash flow is tight. Today, let’s discuss how entrepreneurs can use business credit cards to their benefit.

Using Credit Cards for Business Expenses

Some entrepreneurs may insist that there is no need to apply for a business credit card since they can also use their personal credit cards to pay for business expenses. Indeed, you can use your personal credit card for any purpose you want, but business owners are completely discouraged from mixing personal and business finances.

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Benefits of Using a Business Credit Card Machines

2010-05-06T03:41:00.000-07:00

Accepting credit card payment from customers is definitely a big advantage for business. Here are the following tips on how to choose the right business credit card processing machine for your company.

When times are tough, many people use their credit cards to make important purchases as it gives them the option to take the item now and pay for it later. For business owner, accepting credit card payment from customers is definitely a big advantage.

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A Closer Look at Credit Card Processing Service for Businesses

2010-04-28T01:08:00.000-07:00

About Credit Card Processing Service for Businesses. Acquiring a first-rate business credit card processing service is very important for both big and smaller businesses. By accepting credit card payments, a business can dramatically boost its sales and marketing performance. Furthermore, it is one key element in gaining the trust of more customers and even business-to-business partners.

What are the benefits of business credit card processing?

read more: A Closer Look at Credit Card Processing Service for Businesses

5 Steps to Effective Business Credit Card Management

2010-04-20T03:02:00.000-07:00

If you own a business, have you considered applying for a business credit card? Check these 5 steps on how to effectively manage business credit card.

According to survey conducted by the Tower Group-a leading research and consulting firm- only two thirds of small business owners use a credit card with only 40% using business credit cards. Are you a small business owner? If yes, are you planning to apply for a business credit card to assist your business financing? Indeed, when used correctly, a small business credit card can be a great tool in enhancing the performance of your business.

read more: 5 Steps to Effective Business Credit Card Management

Build Up Your Business with the Help of Business Credit Cards

2010-04-13T22:58:00.000-07:00

How Business Credit Cards Can Build Up Your Business? One of the effective business financing for building business is the business credit card. Find out how using one can help you build up your business credit history.

There are several types of business financing and applying for a business credit card is one of them. For business owners who seek financial assistance, a less complicated process, and a speedier approval, a business credit card is the perfect solution. In this article, let’s talk about how small business credit cards can help build up your business credit history whether it has just been started or on its way to growth.

read more: Build Up Your Business with the Help of Business Credit Cards

Business Credit Card FAQs

2010-04-06T06:25:00.000-07:00

Despite the popularity of business credit cards, many entrepreneurs are still apprehensive about using them. Are you a business owner? Are you thinking about applying for a business credit card? Understanding the basic points about them may help you come up with a decision. Here are some of the most Frequently Asked Questions about business credit cards:

Do you need to own a large business in order to qualify?

In the past years, business credit cards are offered only to larger companies. These days, even small business entrepreneurs and home based business owners can apply for a business credit card. It doesn’t matter whether you are managing a small business or a big one, as long as you meet the requirements of the card.

When applying for a business credit card, would your personal credit history count?

Yes. For new businesses who have not yet established a corporate credit, the business owner’s personal credit history would be used as the basis for approval. The best business credit cards in the market often require good to excellent credit so it’s best to check the status of your credit first before sending in your application. Still, there are also business credit cards for business owners with imperfect credit or with no credit at all.

read more: Business Credit Card FAQs

Apply for a Business Credit Card even without a Credit History

2009-12-11T03:24:00.000-08:00

Applying for a business credit card without a credit history is sometimes difficult to get approved by lenders but there's a chance and it's not too late. The early it is, it is much better. Find out the steps you need to take.

Creditors and investors usually prefer business partners with good to excellent credit history. This is the reason why businesses who haven’t established a credit history are finding it difficult to deal with lenders and investors.

If you are new entrepreneur, you don’t have to worry because has all businesses the chance to build its credit history any time. Below are steps on how to start building your credit history:

Register with a Business Credit Bureau

Having your company registered with a business credit bureau is the first important step you need to do to build a credit history. The country has two (2) major business credit reporting agencies – Dun & Bradstreet and Experian.

Here is how you can apply for business credit from D & B:

1. Visit their official website or you can also call their toll free helpline at 1-800-234-3867.

2. You have to make sure that you have all the necessary information about your company such as your company name, address and contact numbers of your business. Also, they will ask about what type of business you have, the name of the owner/s of the business, the year it was started, the number of employees you have (if any).

3. Once you have finished the registration process, you have to wait for a few days for the business credit application to be completed.

However, If you want to speed up the processing, you can pay $29.99 using your credit card. You will then receive your D & B number in just about ten (10) days.

Apply for a Secured Business Credit Card

Once you are done signing up with a business credit bureau, the next step is to start building a solid credit history for your business or company. The easiest way is to acquire a secured business credit card.

This type of credit card is specifically created for small businesses with no credit history or with bad credit. Credit card companies that offer regular business credit cards usually require good to excellent credit so it is your best option to just apply for a secured business credit card for starters.

Lenders and investors consider business owners with no credit as high risk applicants. Since a secured business credit card applicant is required to submit a security deposit on their account, this will serve as an assurance that in case of default, there are funds that would be available to the credit card issuer.

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Business Credit Cards- the Answer to Business Difficulties

2009-11-05T23:52:00.000-08:00

Every business faces many challenges along its path. This is especially true for small businesses that have just started and are still trying to gain footing. However, even long time businesses are not exempted from difficulties, particularly when it comes to financing.

Fortunately today, a business has more choices when seeking financial aid. Business credit cards are one of the most efficient means of financial support that a business can acquire with ease. Do business credit cards really provide the solution you need? If yes, in what particular ways can it help in improving your business? Let’s discuss these advantages one by one so you can see why getting a business credit card is a practical choice.

Build up your business credit. One of the best things about a credit card for business is that it helps a newly started company establish credit history. As long as the business cardholder stays within the given credit limit and payments are made on time at all times, there should be no problem maintaining an excellent credit history.

Manage your accounts more easily. Managing finances has been made easier with the help of business credit cards. By keeping your business finances separate from your personal savings, you’ll be able to keep track of your business expenses efficiently, set up your business budget, and make informed financial decisions for your company.

Do your accounting and pay your taxes with ease. Having a business credit card also comes in handy when doing your accounting and when it’s time to pay your taxes. Usually, business credit card issuers send quarterly and yearly account summaries aside from your monthly billing statements. Add to this, business credit card owners are often provided with an access to their accounts online. Take advantage of this very important feature in keeping your business account in close watch.

Distribute supplementary cards to your employees. Another great feature that is unique to business credit cards is the option to distribute additional employee credit cards using a single account. The business owner can set a credit limit for each of the supplementary cards that employees can use for the company’s expenses.

This comes in handy for unexpected expenses such as if a computer or machine needs repair or if there is a need to purchase an item in a hurry. All purchases charged to the supplementary cards will be reflected in your monthly billing statement so there’s no need to worry about the risk of using the employee credit card for personal purchases. Purchases made using the employee cards are all reported so you can use it as reference for your accounting or bookkeeping.

Benefit from the rewards. Business credit cards are also accompanied by different reward programs so you can get more from your expenses. Examples of these programs are the Frequent Flier Miles Reward, Cash Back Rewards, Gas Rewards, Hotel Rewards for Business etc. Choose a credit card for business with a rewards program that best matches your company so you can get the most rewards and privileges.

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Avoiding the Risk of Credit Cards for Small Business

2009-10-29T07:24:00.000-07:00

Many financial experts recommend the use of business credit cards for small business entrepreneurs. However, despite the advantages they offer, the success of using business credit cards largely depend on how you utilize your account. In this article, let’s talk about the possible pitfalls that are associated with the incorrect use of business credit cards and how you can avoid them.

Pitfalls of Business Credit Cards

Maxing out your credit. It could be tempting to maximize the use of your credit, particularly if you have a low credit line. Such a habit can pose a great risk because debts can easily pile up in your account until repayment becomes too difficult. Aside from this, maximizing your credit limit can have a negative effect in your credit score. Lenders can instantly consider you as a high risk borrower if your credit history shows that you have the habit of using your credit line to the full.

Charging all your expenses on your business credit card. Because credit cards are so convenient to use, there is also the danger of overspending. In fact, some business owners even charge personal expenses to their business credit cards. This can be a very dangerous habit since it can easily put you in a serious debt situation.

The issue of personal liability. When you apply for a business credit card, there is a statement in your contract that makes you accountable for all debts charged to your business account. This is known as the personal liability statement. Once you sign up for the card, you also agree that you will be responsible to pay for all debts that would be charged to your business credit card. Should you fail to keep up with your payments, your personal credit history is all at stake. Clearly, it is crucial to always be alert on how your business credit card account is used.

Avoid the Pitfalls of Credit Cards for Business

Being aware of the possible dangers on using business credit cards should not at all discourage you from getting one. Instead, it should make you become more responsible and vigilant in managing your credit card account.

One way to reduce the risks is to pay off your balances in full each month. Aside from minimizing the risk of uncontrolled debt, you also avoid unnecessary costs such as the additional interest rates and late penalty charges.

Another vital step in managing business credit cards is to check your account regularly. Examine your monthly billing statements for any errors or unnecessary purchases. This way, you can take the appropriate action immediately and avoid falling in the debt trap.

Make sure that you’ll only use your business credit card exclusively for business expenses. Before charging a purchase, make sure that it’s really important to your business. See to it that you can afford to pay off your charges completely without carrying over your balance for the next month. Finally, submit your credit card payments on time to protect your credit history.

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