Small Business Credit Card
If you’re a small business owner, you have probably received several offers for a Small business CC. Wondering whether you should consider getting one or how they vary from other forms of credit.
A business credit card can be a convenient way to quickly access funding for short-term needs and can increase your business’ purchasing power. However just like any other source of financing, it comes with a cost and must be managed carefully.
Small business CC provide entrepreneurs with easy access to a revolving kind of credit with a set credit limit, in order to make purchases or withdraw cash. Just like a consumer credit card, it carries an interest charge if the balance is not repaid in full each billing cycle.
There are several reasons why a small business owner should consider applying for a small business CC:
Easier Qualification- for business owners who do not have a well-established credit history to qualify for a revolving line of credit via a credit card.
Convenience- quick access funds for purchases or cash withdrawal.
Financial Cushion- when accounts receivable are way behind or sales are low, resulting to shortage in cash.
Online ease- You can purchase products easily through the net.
Rewards and Incentives- Many cards offer rewards for using the card including discounts, airline travels and cash back incentives.
However if there’s an upside there’s always a downside in everything and these are the things that credit card holder must always remember. It is more expensive, and requires persona-liability agreement. You should make sure that you managed it carefully or create security measures so that it won’t get lost or be stolen. Less protection meaning it does not carry the same protections consumer credit cards, and lastly its fluctuating interest rates.