Obtaining a Small Business Credit Card |
By Jeff Miles on March 15, 2010
.jpg.aspx?width=75&height=75) Getting a small business credit card can be useful because it will make it much easier for you to separate your business expenses from your personal expenses. Before you even start to look at cards, you should determine what you need.
In terms of a credit limit, you should calculate how much your company spends on a monthly basis. If you are sure you can pay this amount off, apply for cards with limits for this amount. Also take into account how many cards you will need, whether you would like a card that provides some sort of system to track each employee’s spending, and if you would like a card that has some sort of rewards program with cash back or miles earnings.
You should also look for many of the same features make a personal credit card attractive including a low interest rate, a low or nonexistent annual fee, 24-7 customer service, and personalized account reports.
As with many other issues regarding your small business, the first step is do your homework. Research various companies and banks and all the different options they offer. A good place to start is the Visa and MasterCard websites which provide links to all the banks that work with them.
For a small business, you will want to look at business cards. Corporate cards are typically used for larger businesses with one hundred or more employees. Once you have selected specific cards, contact the bank or other institution that issues the card and request an application or fill one out online.
The applications are fairly straight forward and will ask you for things like personal information, credit history, and annual income. Once you submit your application, most banks and institutions will process it within 10 days.
Be smart when applying for and using your card. Apply at financial institutions with which you already to do business; they are the most likely to give you a good rate or rewards package or both. Also, only give cards to employees that you know really need the card and that you trust, and remember that the company is ultimately responsible for all the purchases made and fees accrued on the cards.
|
Current Rating: 0 (0 ratings)