Running a small business without a credit card is like taking a shower without using any soap. While you can still get the job done, using a little something extra lets you do a better job. Business credit cards are completely separate from ordinary credit cards because they are designed for small business needs. In most cases, you cannot even apply for a business line of credit until you have your business running, or you have your company registered in your state. Small business cards are a godsend for anyone operating a small business.
When you run your own business, you are responsible for all of the costs. While you might have a grant or a loan, that money might not cover all of your daily costs. Are you prepared for when you server crashes and you need to buy new computers? What would you do if your storefront flooded and insurance spends six months paying for the lost stock? A small business credit card is there for emergency situations, but also those times when you need a little extra cash. You might need money for incidentals around the office, such as extra pens, or you might need to boost employee morale with an end of the day pizza party.
Small businesses often use credit cards when finding out how to save money. Comparison shopping between multiple credit card companies lets you find the best and lowest interest rate available. Business mentoring programs tout the benefits of business credit cards. The cards should only be used for expenses related to the company. This card sets apart your personal money from your business money. You never have to risk losing money out of your own pocket for business expenses because you always have a line of credit open. The card is also helpful for covering startup costs that your budget did not include.
If you’re looking for a reliable business credit card, talk to the bank or financial institution behind your business loan. If you do not have a business loan, then look for banks in your area that offer loans for small businesses. Talk with an advisor at the bank and go over your different options in terms of credit cards. Many banks offer a card embossed with your name and the business name on the front, which means that you are the only one that can use the card. Other banks offer multiple cards in different names, but all attached to your company.
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