How Business Credit Cards Help

Having business credit cards would be a good idea when starting a business.? Small business owners have many responsibilities when opening a business.? Managing Finances are a huge part of it.? Business Credit Cards can be a major asset in streamlining Operations and handling ongoing expenses.? Without adequate Capital small businesses have a higher rate of failure.? Business credit cards are an excellent source of money to pay for short term expenses such as, Research costs, Permits, Utilities, Legal, inventory and supplies.

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Covering expenses and cost; you could use personal or business credit cards.? Here are some comparisons of both:? Personal credit cards report to the 3 major tax bureaus (Experian, Equifax and Trans Union).? While Business cards might report to these bureaus, they also report to the Commercial Credit Bureaus, This can be important in developing trade lines for your business.? Also Business cards usually have higher credit limits than personal, an attractive feature especially if you have deep operating expenses.?

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While you might have rewards on your personal credit cards, business credit cards offer additional rewards such as cash back, airline miles, gifts and bonuses that could be helpful to your business.? Most Business cards offer a 0% introductory interest rate for new card members.? This 0% rate most likely will be for the first 6-12 months, giving a start-up help in ramping up their business.? At tax time, if you used your personal cards to fund your business, you will have the painstaking task of separating the two.? A business card will only list purchases for the business, making it much easier for your accountant to prepare your taxes.

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