Every year, there are more businessmen than before, who are using credit cards for business purposes. Business credit cards do have some benefits as they provide ready cash to manage the cash flows and meet other business requirements as they arise but just like personal credit cards, they need to be vigilantly used and managed otherwise it will affect the credit scoring of the businessman. One should carefully compare top 2016 credit card promotions, as there are many merits of credit cards, there are some demerits too.
Easy to carry:
Plastic money is easy to carry. When you are on business tours, you not need to carry cash or your checkbooks with you. All you need is a credit card that will fulfill the need as it arises.
Helpful is online business:
As online business is prevailing everywhere, presence of a credit card can help you purchasing things online.
A good substitute of cash:
A business credit card is a quick and easy source of funds when you are short on cash flows. If a new business opportunity arises and you do not have enough cash, you not need to worry as your business credit card will fulfill the purpose. Your monthly credit card statement carries all the details of purchases you made with your credit card. In this way, you can not only manage your expenses but also your employees’ expenses to whom you have extended your business credit card. You will know what was purchased with your credit card and next month you can control extra expenses.
Easy to access as compared to bank loans:
It is comparatively easy to gain access to a credit card as compared to the bank loans. So, if you are a small businessman or your credit score is not letting you to qualify for a bank loan, you can apply for a credit card.
Help in building credit score:
When you will use your credit card, you will build a credit history that, if correctly built, will help you to gain access to bigger loans in the future when you will intend to expand your business.
Rewards and benefits:
Just like personal credit cards, business credit cards come with different reward and cash discounts. You can get benefit from all these offers. Review top 2016 credit card promotions to find details of all the available rewards and discounts.
Some of their disadvantages include:-
It is very important to keep track of your employees’ spending. You have to keep a proper check on where and how much they are spending. It is possible that they start using your business credit card on personal expenses. Business credit cards are very sensitive asset of the company and if they are misused by the employees or anyone else, it will affect the business credibility. Hence, proper measures should be taken to make sure they do not fall into wrong hands.
If you are not making timely payments, you will be forced to pay from your personal money. It will affect your personal credit score and cost you more money in terms of interest.