Use Business Credit Cards Wisely

Sharon Boyd has nearly 25 years of experience between both the healthcare and marketing industries. In addition to being an RDH and content writing expert, she also holds a degree in business. Her responsibilities primarily include tackling the communication barriers between small business owners or healthcare providers and their prospective clientele.

Use Business Credit Cards Wisely

Why should you should get a credit card for your company?

  1. You can use a credit card to fund inventory purchases during quiet spells and off-seasons when you aren’t making many sales. This will help you prepare to make the most of your peak selling season without being strapped for spending due to a capital shortage.
  2. A credit card will help you make payments on time despite having to wait on clients and customers to pay their invoices.
  3. By taking advantage of rewards offered by a business credit card, you can enjoy a savings on supplies, inventory, and business expenses.
  4. Making all business-related payments with a credit card can help you track the transactions more easily for bookkeeping and tax reporting purposes.
  5. Having a credit card for company use can help your business’s credit to thrive and open up attractive loan options when the time comes to grow and accelerate your business.

Spending with a business credit card is a smart and safe way to maintain a healthy cash flow as long as you heed a few critical precautions.

Tips on Smart Business Credit Card Use

Whether you’re a seasoned business credit card holder or have yet to explore the possibility, these tips will help you make the best use of your company card.

Choose the right kind of card. Not just any card will do. Select a business card that offers features and rewards that suit your company’s spending profile. If you travel a lot for work, then a card that rewards you with air miles or transferrable points is ideal. If you expect that you’ll be carrying a balance that you can’t pay off for any length of time, then choose a card that offers low APR and reduced fees. If you can afford to immediately pay off what you spend, then you may do well with a card that generates high cash back rewards.

Avoid securing a business credit card with your personal credit. Some business cards require this, so look for a lender that will let you keep your business and personal credit separate.

Maximize cash back rewards. By putting on your business card the large expenses you may usually pay for by check or direct deposit, you can rack up some serious returns in the thousands of dollars. For example: office rent, utilities, internet and phone bills, and marketing costs.

Spend below your limit. Aim to spend no more than 30% of your limit and then pay it off to clear away the debt before racking up new debt.

Pay off your card ASAP. If you can’t pay off your balance, at least pay the minimum to avoid getting hit with costly fees.

Do your research. Read the fine print. Examine your credit card transaction statements as they come in and never assume they are 100% correct. Take a good look at your business’s credit score on a regular basis. Ultimately, the onus is on you to know exactly how a credit card is hurting or helping your company!