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8 Ways to Make Your Business Credit Card Work For You

make your business credit card work for youAs a viable alternative to traditional small business loans, credit cards are easy to operate and often come handy in times of financial emergencies. From another perspective, a credit card could equally drown your finances and leave your business a heartbeat away from bankruptcy. The difference between these two potentials is determined by how well an entrepreneur manages his cash flow, as well as how well a credit card is utilized. Here are 8 ways to make your business credit card work for you.

8 Ways to Make Your Business Credit Card Work For You

Let’s dive right in! Learn all you can from the points below and always be careful when charging your business credit card.

1. Get the Right One

One way to make your business credit card work for you is to get the right one. In this case, the right one could be from your financial institution or credit card with perks and features that correlate with your business needs. For instance, getting a credit card that offers its users a fuel discount wouldn’t be useful if you don’t own a car. As far as the financial institution is concerned, seek a bank or lender that allows you flexibility, especially if your business thrives on variable investment amounts.

2. Return Full Payment in Time

As your billing cycle ends, make an effort to complete the credit amounts. Try to pay more if they offer more flexible options in this area. With this, you would avoid the paying large interest amounts. There’s no harm in rolling a payment over to the next cycle, but then you must be prepared to bear the cost of heavier charges.

The time factor comes in for the same reasons. In fact, early payment has a way of improving your credit score, thereby securing your future credit loans. Small business loans often don’t come easy for candidates with a low credit score. By putting this strategy to use it can increase your credit score remarkably. 

3. Take the Benefits

Another way to make your business credit card work for you is by using the benefits the card has to offer. This is what is meant by choosing the right business card that fits your business needs, that way the benefits can actually be useful.

  • If your credit card offers perks that benefit your business, you are at liberty to use it. That is pretty much why you go after credit loans in the first place.
  • On the other hand, if your credit card offers benefits that don’t exactly suit your business, then why bother?

Related: The (For Real) Best Credit Cards for Excellent Credit

4. Business Only

A business credit card is different from a personal credit card. Avoid withdrawing funds from your business credit for personal use, it isn’t beneficial from a business standpoint. If you do this, you are most likely limiting the growth your business could have given to your credit score. Also, if the business should fail, paying back your lender would become difficult as you may not be able to clearly account for how your funds had been spent.

5. Use a Single Bank

Going with a single bank for your business needs can also be a way to make your business credit card work for you.

If your bank offers you the exact credit type that fits your business, you should try to have a credit card with them alone. This is because it would be easy to reconcile your financial information under one bank than it would be for multiple banks.

Even when you are in need of another account, have it with the same institution. Your credit card would enjoy benefits such as instant fund transfer and automatic payments. You’d even find it easier to seek credit from the bank in the future and also be eligible for their perks.

make your business credit card work for you6. Have Business Credit Cards for Your Employees

Small business loans don’t often come with a broad enough spectrum. However, you can have this yourself by getting your employees to use business credit cards. The advantage of this is mainly the perks. As with multiple credit cards, your business is sure to enjoy benefits in several folds.

7. Set Spending Limits

You should set spending limits in order for your business credit cards to work for you more efficiently. Setting spending limits to how much an employee can spend off the business account can be beneficial in the long run and save on unnecessary items. This comes as a fail-safe for times when employees lose or abuse their cards. Besides junior officials should not have the same liberty to make business purchases as their superiors.

8. Use Cash Back Perks

This is a different kind of reward. There are a number of cardholders that don’t know their business credit cards have this feature. The advantage can be seen in situations where you had to reduce office rent or change your internet service provider. You get to save a whole lot more with the cash back perk which can help ensure your business credit card work for you. 

Make Your Business Credit Card Work For You

These are just some ways that you can make your business credit card work for you. Make sure to do as much research as possible before choosing your business credit card. If you’ve already chosen one, look into what your credit card or lending institution is offering as a benefit for your small business. This can help make sure your small business loans pay off in the long run. 

Are you ready for a better business card solution? What type will you choose?


AUTHOR LaTia Longuemire

My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.

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