Business Credit – How Business Credit Cards Benefit Your Business

Business credit cards enable people to start businesses who otherwise would not have the financial ability to do so. Funds can be borrowed against the credit card for operating expenses. Using a credit card permits borrowers to keep business expenses separate from personal expenses. There are more advantages to a business card though then just a source of capital. Business owners may not realize that a this credit card can assist with organization, company development and the ability to gross more earnings.Access to Funds
Business credit cards are a beneficial source of available funds. A company may find itself in need of emergency cash. Or during the setup phase of a business extra capital money may be essential. A credit card will enable the business owner to access monies required.Monitoring and Tracking Expenses
Business expenses incurred through this credit card assist the company in monitoring its expenses. Owners can track their expenditures through a monthly statement. The statement lists all transactions made on the account and, thereby, enables the company to have an accurate picture of type of expenses incurred. This will save the company time and effort in tracking expenses. This is especially valuable for companies that have entertainment or travel costs. Record keeping for these expenses may be too difficult to be feasible. One of the most important features of a credit card is that less work will be required for accounting and tax purposes.Builds a Credible Reputation
Business credit cards may give a small business the appearance of being official and professional. A credit card will authenticate the company’s purchases immediately and give an impression of substance. This may draw the attention of potential investors or even customers. It may give the effect that the company is reputable and reliable. In addition, those credit cards aid a business to build up a credit rating, a important factor in establishing credit.Indemnification
Those credit cards offer limited indemnification to owners for purchases on behalf of the company with the credit account. Purchases paid in cash or by other means do not have any protection. For businesses that are involved in foreign travel, a business credit card can be invaluable as most cards are accepted worldwide. Businesses that are involved in a high level of purchases or sales through credit cards can be certain the funds are forthcoming. This is an important security feature.Delayed Payment Feature
Transactions made on that credit card are not payable immediately. Payment is deferred until the due date specified on the monthly statement. This permits a business to make large purchases even if the company does not have the funds in hand at the time of purchase.Bonus Benefits
Many credit cards have fringe benefits attached to them. These may be in the form of cash back options or air travel points. A business can build up bonus benefits and save money by redeeming the options or points. There are many different schemes available and the business can chose which program will best suit their needs.Successful operation of a business in today’s economy requires creativity. Business credit cards provide an owner the opportunity to be inventive in realizing their goals.All the features listed above, access to funds, expense tracking and monitoring, reputation building, indemnification, delayed payment features and bonuses, combine to make the credit card an invaluable asset in many forms.