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One of
the many difficulties of starting a small business
is gaining access to capital during the startup
phase. With the large growth in small specialty
businesses across the country,
credit card
companies are beginning to design special programs
to help this new breed of business achieve
success. For even those small businesses that
have access to capital, the perks and benefits
associated with small business credit card
programs, can still be useful to help you compete
more effectively in the marketplace. Below are
just six of the many ways in which a small
business credit card can help your business to
operate more smoothly and improve your bottom
line.
Ease Your Cash Crunch
A small business credit card can ease your
business’s cash woes. Through the development and
implementation of a sound financial plan that
utilizes a credit card you can guarantee that your
business will always meet payroll, be able to
purchase inventory on an as needed basis, and
manage both seasonal and business fluctuations
without depleting your cash reservoir. Another
added advantage is the cash advance
feature, which allows you to withdraw cash from an
ATM to cover emergencies and other unanticipated
expenses.
Unlike a personal credit card, a business credit
card also provides a business size credit line,
which is substantially higher.
Keep Track of Business Expenses
Through the use of a credit card, you can, with
little to no effort, separate your business
expenses from your personal expenses. This allows
for easy identification of tax deductions and
filing of accurate income tax returns.
Secure Multiple Cards
You can also secure more than one card through
small business credit card programs. This allows
you to give employees the authority to make
purchases while freeing up your schedule for more
pressing issues. You can also do this with ease
since you are also given the ability to set
spending limits for different employees, which
will further help you to control your expenses.
Access Free Business Resources
Anything free is good! Some credit card companies
also provide clients with a wealth of resources to
help manage cash flow and develop good record
keeping procedures free of charge. Extensive
reporting is conducted on both a monthly and
bimonthly basis to help you track your expenses
down to the penny. Additionally, free business
checks and electronic funds transfers are also
available.
In addition to that, you can also access reports,
data and advice on developing business and
marketing plans, conducting market analysis, and
pricing products through a company’s web site.
You can also increase your knowledge of other
products and services like software programs that
can help your day-to-day operations run more
efficiently.
Build Credit to Qualify for Larger Loans
Obtaining a credit card and using it wisely can
also be a stepping-stone to help your business
qualify and secure a loan with a major bank or
venture capitalist firm. By establishing a good
relationship and credit history
with a company that also offers other products and
services, it’ll just be a matter of time before
other cost-saving services are thrown your way.
Perks and Rewards
Perks and Reward Programs designed especially for
small businesses are by far one of the best
features of a small business credit card program.
Small businesses can earn airline points and
cash back
rewards just like the big boys. Discounts
are also available through select merchants like
FedEx and Staples, which can result in huge cost
savings for supplies and other operational
expenses. Some companies also go an extra
mile by providing rental car and lodging benefits.
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