Getting a small business credit card can be useful because it will make it much easier for you to separate your business expenses from your personal expenses. Before you even start to look at cards, you should determine what you need.
In terms of a credit limit, you should calculate how much your company spends on a monthly basis. If you are sure you can pay this amount off, apply for cards with limits for this amount. Also take into account how many cards you will need, whether you would like a card that provides some sort of system to track each employee’s spending, and if you would like a card that has some sort of rewards program with cash back or miles earnings.
You should also look for many of the same features make a personal credit card attractive including a low interest rate, a low or nonexistent annual fee, 24-7 customer service, and personalized account reports.
As with many other issues regarding your small business, the first step is do your homework. Research various companies and banks and all the different options they offer. A good place to start is the Visa and MasterCard websites which provide links to all the banks that work with them.
For a small business, you will want to look at business cards. Corporate cards are typically used for larger businesses with one hundred or more employees. Once you have selected specific cards, contact the bank or other institution that issues the card and request an application or fill one out online.
The applications are fairly straight forward and will ask you for things like personal information, credit history, and annual income. Once you submit your application, most banks and institutions will process it within 10 days.
Be smart when applying for and using your card. Apply at financial institutions with which you already to do business; they are the most likely to give you a good rate or rewards package or both. Also, only give cards to employees that you know really need the card and that you trust, and remember that the company is ultimately responsible for all the purchases made and fees accrued on the cards.
Since coming to UNC, Jeff has been mostly involved with community service. He is a member of Alpha Phi Omega community service fraternity where he has served in several leadership positions including Olympics Chair, Alumni Chair, and Concessions Chair. He is also participant in the Carolina’s Public Service Scholars Program. His primary service involvement is with TABLE, a non-profit group comprised of college students and community volunteers who are working to feed needy children in the Chapel Hill- Carrboro schools, and with Special Olympics North Carolina. After graduating from college, Jeff hopes to peruse a career in government or in the non-profit sector in some type of communications-related position. He hopes to eventually become a published author.
Jeff first became interested in perusing a career in writing and communication during high school after he took courses on English rhetoric and composition and saw how writing can really do everything from causing someone to get lost in the world of good book to convincing someone to save the environment.
In his spare time Jeff enjoys watching old movies, hanging out with friends, listening to music, running, and reading.
- Obtaining a Small Business Credit Card - January 10, 2014
- Adjustable Rate Mortgages: Are They Always Bad? - January 10, 2014