Have you ever wondered why business credit cards are very popular among business owners these days? If you have then, this article will provide the answers to your question. In the paragraphs below, we have discussed the top reasons behind the rise in the use of these credit card programs, especially for financing business needs.
4 Important Reasons
Business credit cards usually come with business-friendly features. Credit cards offered to business owners often come with beneficial features that will surely suit the needs, preferences, and budget of most shops and stores today.
For example, because issuers understand that entrepreneurs need huge funds to support their business operations, a lot of card companies nowadays offer lines of credit with high spending limits. They also provide a wide variety of payment terms and options that will perfectly suit the cash-flows of various enterprises.
And that’s not all. Business owners, like you, can even choose a suitable liability clause, based on their personal preferences. For instance, you can opt for commercial liability to have your business liable for all your credit card transactions. On the other hand, you can pick ‘joint and several’ liability if you wish to shoulder a part of the financial obligations of your shop or store.
Most credit card programs offer rewards and perks. A lot of business credit cards come with excellent incentives and perks. By charging your business expenses and purchases on your card account, you can rack up points and receive exciting rewards in the form of cash rebates, free flights and other travel-related incentives, huge discounts in retails stores as well as free merchandise.
Still, you need to remember that such rewards come with a price. Most business reward credit cards today carry higher rates of interest and fees than non-reward programs. So, try to consider your business finances very well, before you decide to sign up for a credit card with rewards.
They can make business accounting easier. Business credit cards can also make records-keeping and financial accounting a lot easier. By charging all your business-related purchases on your card account, you can keep all your expenses in just one place. Moreover, you can use your monthly billing statements as references for your tax deductions.
You can get multiple lines of credit that you can share with your employees. Some card issuers also provide multiple credit cards to business owners. With multiple lines of credit all registered under just one account, entrepreneurs can share credit with their employees. This way, they can empower their employees to make important business decisions, like making immediate purchases, especially when product inventory runs low.
It is also good to note that this program enables owners to control business spending. After all, they have to power to set the user privileges of their account extensions. In fact, they can set a credit limit for each card account, and restrict where and when the cards can be used. With these features, business owners can be sure that their lines of credit will be used exclusively for business financing.
About the Author
Matt Nguyen is an online entrepreneur and a regular contributor to buildingbusinesscreditblog.com and several other online business journals. He has written articles primarily on how to build credit for new businesses. That includes using business loans, leases, and credit cards to build a high business credit score. To read more of his articles please visit http://www.buildingbusinesscreditblog.com.