Business Credit Cards For Your New Venture

Business Credit Cards For Your New Venture

Thinking about being self-employed is a long-held dream for many individuals but because the path to realizing that dream is jumbled with hard decisions and self-sacrifice, most people balk at most important step that they must take in creating an entrepreneurial future: investing in a plan and taking steps!

First steps might include setting up a business plan, organizing a home office separate from your living quarters, assembling a team if important, creating an efficient, professional and fully functional website and, of course, securing and building the credit profile of one’s new company.Among the lots of benefits of establishing business credit to your company is that it will lend your business credibility and will supply the cash flow necessary for growth.

The first and most significant step toward establishing a credit presence to your new business is to research and apply for a business credit card. Take the time to compare cards as there are numerous cards to choose from using a wide and varied array involving both benefits and fees.

One example is, a business card usually includes a higher credit limit than a personal credit card which supports your business with cash flow and allow you to use the bank’s money interest-free — so long as you are able to pay your bills promptly. At the same time, some business credit cards have higher interest rates that is detrimental if you spend in excess of you can afford to repay in the allotted time and cannot make the required payments.

Make sure, too, to evaluate for the perks, discounts as well as rewards that some business charge cards provide. As an example, American Express OPEN provides savings and discounts for small enterprises on items that are required each day such as office supplies, shipping and travel related charges while other cards offer purchasing on all qualified business charges. Miles, trips, merchandise, tickets, free additional cards to your employees… simply research, compare and decide what is most effective for your company.

Many business cards do charge for additional cards and also for annual fees but if you utilize the card to charge buying frequently, it is highly likely which the rewards will easily exceed these kind of fees. Most business credit cards provide year-end records of all buying sorted by category which takes a lot of the stress out of tax preparation. Some companies also offer organization advice and mentoring and also interest free checks and other services that could make starting your new enterprise easier.

It should be noted that while you are able to use a personal credit card for business expenses, it is strongly recommended that your new business owner keep personalized expenses and business expenses different for both tax reasons and to make certain your personal assets are not affected by anything that happens in the financial dealings of one’s business.

In making this determination, you should also keep in your mind that business cards are not currently within the safeguards provided under the CARD Act (Credit Card Accountability, Duty, and Disclosure Act) which established consumer friendly laws designed to govern personal credit cards.

While similar protections for business cards work their way through Congress, when you have concerns regarding the protections provided by the CARD Act, you could consider making among your personal cards your “business” card for the moment. Also, if you are the only real employee of your business and are also not yet incurring significant charges, it may not be necessary to acquire a business card just yet.

Once you take the leap and start your personal business, it is important to do your research and make a good choice in relation to your business credit. To this end, decide what your credit history needs are, consider all of your alternatives and apply for the card that will aid your company in its first days and also when it becomes a well-versed – and successful – enterprise. And good luck.

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