Bridge the Income Gap

Many small businesses use small business credit cards to bridge the gap between income and expenses. A revolving line of credit is important for many small businesses or start-up businesses, as this enables the company to continue operating the business, even when cash flow is an issue.

Search for a Low, Fixed Interest Rate

Small business cards are similar to traditional credit cards, as the credit card balances are subject to interest charges; therefore, it is extremely important for small business owners to shop around and find a small business credit card with a low, fixed interest rate.

Take Advantage of Online Tools

Small business credit cards may also prove useful to small business owners who want to track their weekly, monthly and yearly spending. Most small business credit cards offer a myriad of online tools to help small business owners track expenses. In addition, year-end account summaries are also very useful, as they enable small business owners to see the overall picture regarding their yearly expenditures.

Protect yourself Against Credit Card Theft

Like traditional credit cards, small business credit cards feature protection against fraud or credit card theft, as well. For many small business owners, the ability to check the account online is important, as they can monitor the account on a weekly – or even daily – basis to ensure that there are no unapproved charges on the card.

Include Additional, Authorized Users to the Account

Small business owners can also add certain employees to the account, thereby enabling them to purchase supplies when needed. And, because all expenses are tracked and accounted for, the small business owner does not need to worry about frivolous expenditures. For many small business owners that rely on employees to make purchases and order supplies, this account feature may prove extremely beneficial.

Keep Business and Personal Expenses Separate

For many small business owners, it may prove useful to separate business expenses from personal expenses, so it may be a good idea for small business owners to obtain a small business credit card and use it solely for business expenditures, thereby eliminating the problem of confusing bookkeeping.

For both business and personal use, credit cards may prove to be a very effective financial tool for credit card holders.

Credit Card Benefits

• Purchase Protection – If you receive an item that is unsatisfactory and the company or manufacturer is unwilling to grant you a refund, or if you purchase an item that arrives damaged, or not at all, the purchase protection feature on your credit card may cover your expenses.
• Extended warranty – Many purchases on a credit card come with the protection of an extended warranty. For example, electronics may be covered with a warranty that covers the purchase on top of the store or manufacturer’s warranty. Most credit cards offer a 90-day extended warranty on most purchases.
• Rewards – Many of today’s credit cards offer rewards of many kinds, such as cash-back rewards or rewards for products and services. For example, some credit cards enable credit card holders to earn points toward free hotel stays, airfare or reduced vacations. In other words, simply using your credit cards for purchases may earn you cash rebates or free products or services.
• Access to Emergency Money – A credit card in your back pocket may provide you with financial protection during an emergency situation where cash isn’t available. An emergency airline ticket, rental car, vehicle repair costs or even a new furnace are all necessary purchases that may not be attainable if it weren’t for the convenience of a credit card.
• Financial Bookkeeping – Credit cards are a very useful financial tool for tracking expenditures and maintaining finances. Credit cards, for both personal and business use, provide an individual with a clear record of all expenses.
• Convenience – Perhaps the most popular reason for using a credit card is the sheer convenience of it. Most individuals who use frequently use credit cards cite the practicality of not carrying cash as the biggest reason for using a credit card for purchases.