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Benefits of Business Credit Cards E-mail
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There are numerous advantages to using credit cards in your small business. The advantages increase when you have a credit card that is exclusive to your small business- in other words, one that is not at all used for personal expenses.

The advantages of using a small business credit card include, but are not limited to:

Building Business Credit:
Particularly if you have a newly established business, having a credit card in the business name will enable you to establish a credit record for the business. As you use the card and make on-time payments, you will start to build a positive credit history which helps you in the future if you need to obtain business funding to expand or for expenses.

Keeping Business Seperate from Personal Expenses:
What many small business owners struggle with is the ability to keep their business expenses completely seperate from their personal expenses. If you are using a personal credit card to make business purchases, you have to go through your statements at tax time and mark all of the purchases that were personal and those that were for the business. Have a credit card that is specific to your business and suddenly you have an easy way to keep your personal finances seperate from your business finances.

Minimize Record-Keeping and Receipts:
If you were to use one credit card for all of your business purchases and expenses throughout the year, you could simply hold onto your statements as your receipts and for your taxes. Additionally, most small business credit cards offer a year-end summary that makes it even easier- all of your transactions displayed on one page!

Keep Track of What Employees are Spending:
Some businesses have an employee or two that need to have the ability to make purchases for the office or pay for other expenses on behalf of the business. You could simply obtain additional credit cards in their name under the same account as your business credit card- and all the transactions will be itemized on the statements and year-end summary. At a glance you can see what the employees are spending and on what; and have the records easily accessible for tax time as well. If an employee is abusing the credit card use, you'll be able to monitor and track that with a quick look at the single credit card statement you receive each month- and put a stop to it before it gets out of hand.

Earn Rewards:
If you were to choose a small business credit card that offers a rewards program, your every day spending will help you earn rewards. When used correctly, a rewards credit card can actually help you lower your business expenses as you'll be able to receive discounts or rewards on office supplies, software, phone services and travel.

In order to make a credit card beneficial to your business, however, you must be on top of your payments. Paying a credit card payment a few days late can result in excessive fees and interest rate hikes. Your goal should be to completely pay off your credit card at the end of each month, and avoid carrying a balance from one month to the next.

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About the Author: Debbie Dragon is a writer for Creditorweb.com, and regularly writes about business credit cards.
Comments (1)add
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written by Jay , January 30, 2008
Nice points being made.
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