A Business Credit Card For Your New Business?
These days, more and more people are considering the benefits of being self-employed. If you are one of the many who are the brink of making this important choice, it is essential that you begin by taking the first steps: namely, getting committed and getting started! Some things you can do right away include making a business plan, putting together a dedicated and functional home office space, assembling a team or board of advisors and developing a professional and well-designed website for your business. Another important step you should take in the
beginning stages of starting your business is to begin to build your company's credit by obtaining a business credit card. Having a business credit card can have a huge impact on a new business. As an example, business cards typically have higher credit limits than personal credit cards do which will help immensely with cash flow in the first stages of establishing your business. If you are prepared to pay your bill on time, using your business credit card as "ready cash" will let you use the bank's money without interest which essentially allows you to "borrow" money for the interest free period. If this feature is important to you, remember to do your research on interest rates; some business cards have higher interest rates so if you are not able to meet your payments on time, your credit rating could suffer. Many business credit cards offer rewards, discounts and other perks that you should consider. As an example, American Express OPEN offers their business card holders special savings and
discounts on items that small businesses use every day such as shipping charges, office supplies and travel related expenses. Many business credit cards also charge annual fees and assess a charge for each extra card you order for your employees but if it is a rewards based card and you use it often, the value of the rewards are quite likely to quickly exceed the annual fees. Finally, many business cards will provide a year-end record of purchases, categorized and detailed, which can go a long way toward making tax season easier. Decide which of these (and other) features are important to you and base your research on those needs. Some new business owners opt to start their business using a personal credit card. It's true that if you are the only employee of your business and you do not have a large number of expenses, a business credit card may not be necessary. But for many reasons, it is strongly recommended that you have separate business cards and personal cards. For instance, a business credit
card will make it far easier for you to keep a record of expenses which are tax deductible, give you a higher credit limit, offer discounts and rewards that will benefit your business and protect your personal assets no matter what happens with your business. On the other hand, only personal cards are included under Credit Card Accountability, Responsibility, and Disclosure Act (or CARD Act) that was instituted last year which means, essentially, that business credit cards are not protected by the same laws that govern personal cards. As a new business owner, credit is essential but if you find that you have concerns about the CARD Act, it may be best to use one of your existing personal cards as a business credit card for the time being. Just as you would with setting up a new personal credit card, all the disparate offerings available should be considered when selecting a new business credit card; for example, business card issuers who follow CARD act provisions voluntarily or who offer
meaningful rewards and discounts or a fee-free card should be carefully considered. In the beginning days of becoming your own boss, you may be tempted to apply for the first card offer you receive in the mail but your business will be unique and the needs of that business will be just as unique; take the time to research, learn, evaluate and select a card based on the needs of your business and your business credit card will become a part of the success of your venture.
For more information and to research, compare and apply for business credit cards, visit Business Credit Card Source at http://www.businesscreditcardsource.com.
Starting a new business? Need credit?