Business Credit Cards
Business Credit Cards
Credit cards are not just for individuals. Many
businesses use credit cards in their daily operations
too. And you do not have to be a large, multi-national
corporation to obtain a business credit card. They can
work just as well for a small business owner who operates
out of his home.

One of the main advantages of a business credit card is
that it can help build up the credit history of the business.
Businesses need a solid credit history in order to qualify
for loans and other lines of credit, just as individuals do.
By using a business credit card responsibly and paying the
bills on time you can start building a good credit history
for your business.

Another advantage is that it will help you keep your business
expenses separate from personal spending. Small business
owners especially have trouble staying organized and pay
the price when it comes time to do their taxes. They may
miss out on a deduction or get in trouble with the tax man
for deducting something they shouldn't have.

By using the card strictly for business purposes you'll know
that anything charged to it is a business expense. Also, most
business cardholders receive a year-end statement showing all
of their charges by category. This is a great asset both for
completing tax forms and for staying organized and tracking
spending.

For a small business that is tight on cash, a business credit
card is a great way to tap into additional funds for growing
your business. Equipment, supplies, and inventory can be
purchased on the card and paid off later.

The credit limit for business credit cards is generally higher
than you would expect for a standard card. Limits of up to
$50,000 are common. This can be a godsend to a newly started
business in need of money to get things up and running.

Many business cards today are also offering rewards programs.
You can earn points for the purchases you make and then redeem
the points for business related products or gift cards to
merchants such as office supply stores. This is a nice way to
get the occasional freebie.

Of course, business cards can also be just as dangerous as a
standard credit card. Running up debt that you can't afford
and making late payments will get your business in trouble
quickly. To stay safe follow the same rules you follow on
your personal account:
Don't overspend
Don't miss any payments
Pay on time

Stick to those 3 guidelines to
get the most out of your business credit card.

Ed Lathrop is a successful real estate investor and a series 3 commodities futures broker.
He has extensive knowledge of the credit/mortgage markets.  He has built the financial
calculator Website, ezcalculator which is free to use and includes the calculator, "Pay Your
Credit Card Debt Quick."  Ezcalculator can be found at Mortgage Calculator or by going to
ezcalculator.com