| Regardless of the type of business you own or | | | | reporting to the business credit bureau such as |
| how long you have been in operations, getting a | | | | Dun & Bradstreet and Experian Business. |
| real credit card for business is a must. True, you | | | | Hence, in case you may need to apply for a |
| cannot finance an entire business using only | | | | business loan, getting approved can be much less |
| business credit cards, but they can be wonderful | | | | complicated. And since it's easier to apply for a |
| back-up to cover for monthly expenses or | | | | credit card than a business loan, new |
| unexpected needs, particularly when cash flow is | | | | entrepreneurs can establish credit history using a |
| tight. Today, let's discuss how entrepreneurs can | | | | card to increase chances of getting a loan |
| use cards to their benefit. | | | | approval. After a year or two of consistent |
| Using Cards for Business Expenses | | | | payments, you will surely be able to present an |
| Some entrepreneurs may insist that there is no | | | | impressive business credit history to potential |
| need to apply for a card since they can also use | | | | lenders. |
| their personal cards to pay for business expenses. | | | | Employees and Supplementary Cards |
| Indeed, you can use your personal card for any | | | | Supplementary credit cards are cards that are |
| purpose you want, but business owners are | | | | linked to the primary business credit cardholder's |
| completely discouraged from mixing personal and | | | | account. These cards can distributed to selected |
| business finances. | | | | employees so they can simply charge small |
| As your company grows and expenses increase, | | | | business expenses without having to go through |
| it will be very difficult to make financial decisions if | | | | the long process of requesting for cash and |
| your personal and business accounts are merged. | | | | waiting for the funds to be released. |
| On the contrary, having a separate business | | | | All purchases made using the supplementary or |
| account can help the business owner keep track | | | | employee card will be reflected to the business |
| of his/her company's budget and avoid | | | | credit card owner's account. This way, employee |
| unnecessary spending. In fact, a business credit | | | | spending can be closely monitored and unofficial |
| card holder can use card statements and annual | | | | transactions can be avoided. |
| account summary reports as accurate references | | | | Smart Management of Your Card Account |
| when performing accounting tasks or when filing | | | | As a personal credit cardholder, you may |
| business taxes. | | | | probably well know that timely payment is crucial. |
| Business credit cards are also the best tools in | | | | In the same way, business credit card balances |
| building corporate credit history. As you use your | | | | should be paid on time as well. Keep in mind that |
| card to pay for your company's expenses and | | | | in order to build and maintain a good business |
| pay off balances on time, you are building up your | | | | credit history, you need to make sure that all |
| Paydex Score at the same time. Just be sure to | | | | your accounts are free from late payments or |
| choose a credit card company that offers credit | | | | negative remarks. |