There is a truly bewildering array of business credit cards available, and choosing the right one can be a daunting task, however, it can be one of the most powerful tools a business owner has available. One of the best reasons to use business credit cards is the ease with which you can manage your finances through expense tracking, on-demand statements and, with the right mix of rewards and services even extend your cash flow.
When considering which business credit cards are best for you, look for the best discount available with the lowest interest rates. You should also consider the other services available such as cashback rewards, complimentary add-ons and customer service. If you travel, you may want a business credit card with frequent flier miles. Gas Rebate Cards can take the edge off fuel prices for businesses that spend a lot in gas costs, and cash back cards can help ease the bottom line for businesses that have a variety of purchases or do not spend significant capital in travel and fuel.
Each of the different reward and rebate credit cards comes with its own mix of choices. For example, Gas Rebate Cards and frequent flier mile cards can be generic or apply to a specific airline or gas station.
Frequent flier cards can also come with baggage and travel insurance, and hotel and car rental discounts.
If you are engaged in a business where you invoice customers, a business credit card may make sense because it allows you to have money available before you invoice and receive payment from your customers. This extends your cash flow cycle without causing stress to your budget and without pestering your clients for payments.
Business credit cards can be extremely useful in tracking employee expenses, managing general business expenses and allocating funds to particular departments or projects. Many business credit cards offer statements that are directly downloadable to various popular finance programs which can save valuable time in bookkeeping. Most business credit cards come with statements already categorized by types of expenses (travel, entertaining, office supplies) which means you may not have to save every receipt and can instead take your quarterly statements to the accountant come tax time. Business credit cards also give you the ability to set different spending limits for different employees (vendors) using the same line of credit. This feature provides you control over your budget spending and gives you the power to adjust those limits to capitalize on unexpected changes in the market, your business, or your staff.
Itemized statements offered by most business credit cards can also help in analyzing your expenses relative to one another. This way you can ensure that no one category is overspending. Much of the account management can be done online, then downloaded or imported into the needed files and programs. As a small business owner, time is often as scarce as available credit, and business credit cards can definitely help with potential problems.
Business credit cards can be a very effective tool for managing finances of your start up while building a solid credit profile for you business. The diversity of business credit cards means the right card is always available for your varying business needs.