Credit Cards for Small Businesses

Small business owners who need a quick cash inflow, but are unsure where to borrow from, should consider using a credit card. Business credit cards represent an easily accessible source for a loan, although the availability is offset by the high risk incurred in doing so. However, despite the dangers, there are countless examples of a credit card being used as a financing source.

Larry Page and Sergey Brin's start up of Google was financed by credit cards to buy the necessary computers and office equipment and a terabyte of memory, to start the search engine. Filmmaker Robert Townsend and Director Kevin Smith have used credit cards to finance various movies. Famed hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in financial markets by borrowing from his credit card.

Taking note of such trends, credit card companies offer business credit cards that can be used for financing various projects, and also for the day-to-day running of the business. Visa and MasterCard both offer credit cards that allow business expenses to be charged to them, and easy access to secondary and add-on cards with the same features. Such cards offer reward points, air miles and other fringe benefits as an incentive for using them. They have low-interest rates, to increase sales and offer small businesses a way to cut down on operating costs, as well as providing a speedy method of emergency cash injection.

Another advantage of business cards is that they allow the owner to track his employees’ spending, and also makes his accounting more efficient and easier to manage.

However, business owners who borrow on plastic should strive to use their business credit card for monthly expenses and pay off their balance in full each month. Also, they should make sure to check their account summaries regularly. They should also generally use only one business card at a time, as it sometimes becomes difficult to pay off several balances.

Business owners and administrators should consult issuing banks or financial institutions about the feasibility of a credit card for their business.

Source

http://www.businesscreditcardsite.com/why-business-credit-cards-are-useful-to-your-business/

http://www.businesscreditcardsite.com/10-valuable-tips-about-business-credit-cards/

www.creditorweb.com/categories/business-credit-cards.html