There are many reasons why a business credit card may be good for business, some of them involving card features and some of them involving the creative use of offer periods etc. If you are thinking of applying for a card for your business, financial experts recommend that you look carefully at your business' aims, objectives and forecasts so that you can choose the card most suited to your requirements. The best place to find all of the details about a business credit card is online where they can be compared, and even applied, for quickly and simply. It is recommended that you take time to consider all of the options available first.
There are many other benefits that can be reaped from clever credit card use that can help your business no end. Business credit cards often work in a similar way to personal credit cards. They also come with similar benefits and features. Some of the features that you may find on offer are: 0% on balance transfers; 0% on cash purchases; and loyalty schemes, such as free Airmiles. Other features include the ability to withdraw cash at a cash machine, the ability to use the card abroad and so forth. Some of these features can be used creatively to help your business whereas others should be avoided at all costs.
Some financial advisors recommend that you use business credit cards in a similar way to personal cards. For example, your business card will usually have a 0% on balance transfers period. Normally this is around a year. Many financial advisors suggest that to take advantage of these 0% periods you should seek to change cards when the offer expires. In this way you pay off balances without having to pay huge amounts of interest. Others advise caution, as too much of this type of activity can affect your chance of getting a card in the future. In the case of a business, this is less likely to be the case as card providers will often be eager to secure your business.
0% on cash purchases can also be used in a similar way. You could make a purchase on the card and then not have to pay interest on that item for a number of months. This means that you can pay off the expenditure from profit that you are receiving from an item you never had any money for in the first place. In fact some people have even used credit cards to start businesses in this way; most famously Google.
Financial advisors generally agree that it is extremely unwise to draw cash out on a credit card, be it a personal or business card. Often there are charges for drawing cash out of a cash machine with a credit card and the interest rates are higher than on card purchases. Many advisors even go so far as to say that you should never draw money on a credit card.
It will be good to know that business credit cards are offered with many enhanced security features. They use the same chip and PIN technology as other cards and also have a security code on the back. Internet fraud is often covered by the card provider's fraud guarantees so that if money is fraudulently stolen it will, in most cases, be returned. Similarly business accounts are monitored by intelligent fraud protection programs, so that any unusual spending is noticed and questioned. Finally you will be able to access your company's accounts online, providing an easy and efficient way of keeping an eye on your company's finances. These online banking systems also come with a host of added features that can make business even easier. - 15790
There are many other benefits that can be reaped from clever credit card use that can help your business no end. Business credit cards often work in a similar way to personal credit cards. They also come with similar benefits and features. Some of the features that you may find on offer are: 0% on balance transfers; 0% on cash purchases; and loyalty schemes, such as free Airmiles. Other features include the ability to withdraw cash at a cash machine, the ability to use the card abroad and so forth. Some of these features can be used creatively to help your business whereas others should be avoided at all costs.
Some financial advisors recommend that you use business credit cards in a similar way to personal cards. For example, your business card will usually have a 0% on balance transfers period. Normally this is around a year. Many financial advisors suggest that to take advantage of these 0% periods you should seek to change cards when the offer expires. In this way you pay off balances without having to pay huge amounts of interest. Others advise caution, as too much of this type of activity can affect your chance of getting a card in the future. In the case of a business, this is less likely to be the case as card providers will often be eager to secure your business.
0% on cash purchases can also be used in a similar way. You could make a purchase on the card and then not have to pay interest on that item for a number of months. This means that you can pay off the expenditure from profit that you are receiving from an item you never had any money for in the first place. In fact some people have even used credit cards to start businesses in this way; most famously Google.
Financial advisors generally agree that it is extremely unwise to draw cash out on a credit card, be it a personal or business card. Often there are charges for drawing cash out of a cash machine with a credit card and the interest rates are higher than on card purchases. Many advisors even go so far as to say that you should never draw money on a credit card.
It will be good to know that business credit cards are offered with many enhanced security features. They use the same chip and PIN technology as other cards and also have a security code on the back. Internet fraud is often covered by the card provider's fraud guarantees so that if money is fraudulently stolen it will, in most cases, be returned. Similarly business accounts are monitored by intelligent fraud protection programs, so that any unusual spending is noticed and questioned. Finally you will be able to access your company's accounts online, providing an easy and efficient way of keeping an eye on your company's finances. These online banking systems also come with a host of added features that can make business even easier. - 15790
About the Author:
Mark Turner is an experienced financial writer who posts regularly on various popular websites. Find out more about business credit cards and 0 percent business credit cards here.