I want you to get a business credit card. That’s right, a credit card for your business. I am not saying to go rack up a bunch of credit card debt. As long as you can pay your bill in full, here are some of the advantages to having a business credit card.
- You get airline miles or points for travel or even cash back.
- It’s easy to track your business spending. You can download your history into most financial software like Mint or Quicken.
- You usually can get a larger credit line for your business card than for your personal card.
- It’s always good to have a business credit card in case of an emergency.
- It’s an easy way for your employees to spend money on things for your business without you having to sign checks.
Be aware that if you do apply for a business credit card . . .
- Most of the time you need a high credit score to get a business credit card and there will be a credit check on you.
- You are personally liable for your business credit card debt.
Business credit cards don’t have the same protections like personal credit cards do. The Federal Trade Commission and the Credit Card Accountability Responsibility and Disclosure (CARD) act regulates consumer credit cards, not business credit cards.
- If you carry a balance on your business credit card the rates can go up any time.
- Your bill doesn’t have to be due on the same date every month. The company can change the date. So pay attention to when your bill is due.
Remember to pay your business credit card from your business bank account. It’s so much cleaner and it makes it easier to track your business finances.
Not sure where you should go to apply for a business credit card? Start with where you are presently banking. I also love the Starwood Preferred Guest Business Credit Card.
And one final perk of having a business credit card. The year end summary statement is gold. It tells you where you are spending your money. Shoot us an email and we can help you understand where all the money went!