The Basics: Before completing any credit card application, it is a good idea to know the rules of the game. Become familiar with all the credit card terminology and know how it affects you.
Check out long-term rates and not just introductory rates. Look for hidden fees, annual fees, balance transfer rates, late charges, cash advances and grace periods. Always look at your credit card statement carefully to check accuracy and changes.
Understand the benefits
- Save time tracking and reconciling business expenses
- Streamline cash advances
- Monitor employee spending
- Reduce operating expenses
- Maximize cash flow
- Better manage vendor relationships
- 24-hour customer service
There are many advantages to having a business credit card. They are not the best source of capital, but when you business is in a bind they can be a life saver. One of the main drawback to a business credit card is that they are tied to the owner of the card personally. That means that if your business were to default on the card payments, the credit card company can come after the owner of the card. This personal liability does not last forever though, since a lender may agree to remove it after a few years of solid payments. There are business credit cards out there that require no personal guarantee up front, but they are mostly for store specific purchases like home depot or office max.