Business Credit Card

A business credit card is one offered to a business owner who will use it for strictly business needs.

This type of card is a good benefit to the owner since they can use it to pay their accounts payable, purchase stock, handle day to day expenses and even give the card to employees to use for personal expenses that the company will pay for. There are often many questions related to how to obtain and use these lines of credit. The good news is that they can help the company to establish itself, separate from the owner, so that the owner's credit history does not play into any loans the company needs down the road.
Who can get a business credit card?
Those who are owners of the company can obtain these lines of credit. If the business is new or un-established credit-wise, the owner's credit history is usually used to determine if the company can have the account and how much of a limit it should have. Generally, the company's profits are used to determine its limit. Individuals who work for a company and wish to have a card, will need to obtain permission from the owner who will need to apply for the card him or herself.
How can this type of account be used?
One of the best ways to manage a company's expenses is to do so using on method of payment, such as this type of account. All expenses can be paid for using the card, including utilities, inventory, employee expenses, and other accounts payable. Then, at the end of the month, the company receives a statement detailing all expenditures for the month in one convenient way. This makes accounting easy. Also beneficial is the fact that the owner does not have to wait for accounts payable to come in before paying the company's bills.
How can this account be used wisely?
Using it wisely is important since the company's credit history is dependent on doing so. Pay off the balance in full each month to avoid hefty finance charges. Shop around for the lowest interest rate prior to applying for the card. This can cut the cost considerably.
Those who need this type of credit card can apply for one right on the web. It takes only a few minutes to establish it and it can help the owner to start paying bills right away.
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