Don’t Forget Your Business Credit Card When You Start Up
Starting up a new business can be a daunting experience. So much to do, so much to think about, so little time. Before you know it the doors have opened and you begin trading. This happened over 520,000 times in 2004. Everything seems to be going well, but then your suppliers start calling you demanding payment but as cash flow is tight you may not be able to pay them. Hang on a minute; you’ve forgotten the role of a business credit card in the equation!
Wy do you need a business credit card? | | 1. In the early days it is important to manage your cash flow. Having a business credit card can provide you with extra breathing space you need. You can pay your suppliers using your business credit card and have over a month to pay it back. The length of interest free period will depend on the credit card provider you choose.
2. You will be able to clearly separate personal expenses from business expenses.
3. It’s easy to keep track of your transactions and have definitive records for your accounts.
4. A business card will enable your company to transact online and via the telephone. |
What should you look for when choosing the best business credit card?
| | 1. APR is always an important consideration, but not the only one!
2. Don’t take out a business credit card with a massive credit limit that you know you won’t be able to repay. Look at your business finances and set a limit that is within your means.
3. If your have to go abroad on business, you would be wise to search for a business card that offers Air Miles or such things as free travel insurance.
4. Read the small print and focus on the charges – some companies will make horrendous profits on hidden charges. If the charges are sky high, avoid it!
5. Pay attention to what documentation you will need to take out the business credit card. They may want accounts that you simply do not have yet. |
If you find that a business credit card isn’t for you, you could always take out a personal credit card and use only for your business. That way you can benefit from a 0% introductory purchase rate or a permanent low rate credit card.
