There are many occasions when you will use a business credit card. For example you could need to buy office supplies such as ink cartridges and paper or you may wish to take a prospective client to lunch to clinch a deal. Whatever the reason, one way or another, a business credit card can help you to organize your business and ultimately lead you to success as long, of course, that it is used responsibly.
Over and over again entrepreneurs and small businesses get caught out waiting for money from their clients and then when the check finally arrives it takes time to clear. In the meantime, the outgoings still mount up and need paying. This is the time when it becomes clear just how valuable your business credit card can be by way of taking care of the everyday expenses.
Some credit card companies offer additional buyers protection which acts as a second warranty on equipment and this can actually be better than the security offered by the manufacturer so it may be worth your while to use your business credit card to purchase such equipment over a longer period of time.
If all you require are a couple of computers and filing cabinets you will find that the stores will not provide you with favorable long term credit for these less expensive items. However by using your business credit card you will not be expected to spend a great deal of money in order to receive the same extended payment benefits that major equipment purchasers are offered.
Within your business structure you have employees with responsibilities in different areas. Each one of these members of staff generates expenses and needs a business credit card. This is a much easier option than running a petty cash system and once again, it creates a lot less work for your accountant as all the spends are recorded in one place. It also puts an end to any sneaky dealings going on expense-wise within your team of employees.
A good credit rating can be built by a business when it uses the business credit account in a responsible way and makes the payments in a timely manner. The credit worthiness of your business is reflected in the rating given by, for example Dun and Bradstreet and establishing a positive credit history is an important part of allowing your business to grow and things will look very bright for the future.
