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Does Your Company Need A Business Credit Card?
Author: Mario C ChurchillSmall or big, businesses of any type can benefit from the use of a business credit card. If you haven't considered getting one for your company, you might change your mind after reading about the various advantages of having one.
Benefits of Having a Business Credit Card
Accounting Made Easy - If you obtain a credit card for your company, you can use it to purchase and spend for all office necessities. Afterwards, you'll only have to refer to your credit card statement to know how much you've spent for the month. With a business credit card, there's no need to ruffle through various bills every time you need to check your company's balance.
Paper Trail - When you pay somebody or for something with cash, there's a chance that you won't be issued a receipt because you received the goods by COD. Such a thing, however, can't happen when you're using a credit card because payment by credit card can't happen at any place that doesn't issue a receipt. As such, every cent spent for your business will be supported by documentary evidence.
Quick and Easy Delegation - If you assign your manager to handle the purchasing side of your business for this month, you can simply provide him with a supplementary or extension credit card to what you have and he'll quickly be able to complete the task at hand. Upon receiving instruction, your manager can immediately purchase the things you've specified without having to withdraw money from the bank or wait for you to issue him a check.
Safer Purchases - There's every chance that your assistant can get robbed while he's on the way to your supplier's warehouse and when he has a lot of money with him for payment. There's little chance, however, for your company to suffer from financial setback if you're using a business credit card, and especially if it has a photo printed on its surface.
How to Apply for a Business Credit Card
Are you convinced about the usefulness of a business credit card then? If so, then here are the 5 necessary C-factors that you should consider when applying for one:
Capital - How much capital does your business have? This factor will greatly influence how much credit a credit card company would give you.
Capacity to Make the Payments - Simply put, do you have the means to pay off your credit card balance regularly or in a monthly basis? If you already have a personal credit card, the company that you've applied for a business credit card may look on your credit history to verify your credit trustworthiness.
Collateral - In the event that you become a delinquent payer, are there any company assets that the credit card company may confiscate, sell, or liquidate as payment for what you owe?
Condition - What terms and conditions will be specified for your contract?
Character - This is about the character of your company, its reputation inside and outside the financial industry. Naturally, a credit card company would prefer to transact with a business firm that has a proven track record and known for dealing ethically with its creditors, suppliers, employees, and of course, its clients.
Be sure to determine what type of business credit card you wish to apply for beforehand. Think cautiously on whether your business would benefit more from a low interest credit card or one that's reward-based because this can save you a lot of money in the long run.
Article Source: http://www.articlesbase.com/management-articles/does-your-company-need-a-business-credit-card-117192.html
About the Author:Mario Churchill is a sales person and website owner. He manages a website, http://www.usa-credit-card-guide.com where you can find the best credit card offer for your needs and apply for a credit card
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Keywords:
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