Make Most of Business Credit Cards
Capital is bread and butter for the survival of the business. Many small business organisations in India fail to survive for a longer time due to lack of funds. A small business has to comply with many rules and regulations in order to fetch a business loan. These small business organisation will face a rejection when they apply for the loan because the lenders look into both personal credit and business credit while approving the loan. A business owner would have no idea about the business credit until they face rejection from the lender. Using the business credit card is one good way for the business owner to establish business credit and gain quick accesses to emergency funds needed in the business. Apart from that, there are number benefits offered by these business credit cards.
Applying for the business credit cards involves no hassle. It does not involve any huge documentation like tax receipts and financial statements to get your card approval. you will save a good deal of time
You will be rewarded with many benefits by using a business credit card. The reward may be in form of miles or free hotel stays or car rentals. From the array of the business credit cards, choose the one that rewards you per your lifestyle.
High credit limit
Business credit cards have high credit limit when compared to any other personal credit cards. High credit limits on the business card will increase the purchasing power of the owner and you can comfortably fund your business needs without emptying other funds available.
Apart from rewarding you for the purchases made, business credit cards help you stay organised too. You can track your expenses easily either monthly, quarterly or annually. You can easily download annually into accounting software. Purchase through credit cards will simplify your taxes too.
The risk involved in using a business credit card is less when compared to other loans that you get from the lender. You will borrow money only when you spend it. These credit cards come with revolving credit. The credit balance will be available for use once you pay total credit bill or minimum amount.
It is a big mistake to use your personal credit card for addressing business needs. In the case of any loss, your personal credit score will be impacted and you will stand liable to repay the loan. On the contrary, if you choose to go with business credit cards, your business is treated as a separate entity and your credit score remains unimpacted in the case of loss.
Using business credit card will give accesses to emergency funds that are needed for the business. As these cards have high spending limits, you will be able to address small emergency needs of the business without waiting for the approval from the lenders. The interest-free credit period offered by the business credit card is another advantage for your business.