Special Commercial Credit Cards for Business

These cards include personal credit cards, student credit cards, and business or commercial credit cards. Small businesses are having a love affair with their credit cards. Loans are not always easy to get, but credit cards offer the small business owner the opportunity to grow when money is tight and to stay afloat if they are currently experiencing cash flow difficulties. You can get a credit check free to see where your credit stands before you apply for a new card. Today, credit cards represent a large financing source for the capital needs of the small business owner.

Advantages Of A Commercial Credit Card

It’s important to keep business spending separate from personal spending. It can cause many problems trying to sort through all the expenditures and be sure they are properly credited to personal or business spending. Although a regular credit card can offer a small business an infusion of cash quickly, it doesn’t compare to the advantages of a commercial credit card. Capital One spokeswoman Alison Cahill-Rouse remarked, “You’ll also have access to business-specific benefits, such as employee cards and spending controls, and specialty service tailored to meet small businesses’ needs.” The commercial card comes with rewards and incentives that can be incorporated into business strategies that either save or generate income.

Cash Flow Requirements

The primary reason for small business owners to apply for commercial cards is to improve cash flow. The majority of small businesses use commercial credit cards as a major part of their business funding. There have been some small businesses that launched using credit cards for capital, because they were unable to secure a bank loan. A commercial credit card makes keeping business records very simple. All of your transactions are available in your online account and can be printed out for your files, and are readily available for tax purposes.

Employee Cards

The commercial credit card makes cards available for employees you select. These employee cards are primarily used for travel related expenses required by the employee’s job, and often cover hotel bills, restaurant bills, and petrol expense. All employee purchases are monitored and you have the flexibility to limit the amount your employee can spend on his or her card and choose the businesses where they can use the card. Many card issuers supply free employee cards and put the control of how they are to be used in the hands of the small business owner.

Business Cash Rewards

Commercial credit cards offer much higher credit limits than personal credit cards, as well as free employee cards. But they also offer cash rewards. The cash rewards usually contain a number of business-friendly and valuable incentives that can help your bottom line. The incentives might include office supply discounts, free travel, low-cost shipping, cash-back incentives, and discounts on phone, Internet, and cable television. Many business card incentives offset card fees and some can be used as employee rewards for exceptional contribution to the workplace.

Commercial Credit Card Differences

The terms offered to businesses applying for a commercial card are different than the terms of a personal card. A free credit check can let you know if you are likely to be accepted for a commercial card. Businesses can’t depend on a weekly or monthly paycheck. Business money comes in spurts. One month there is a large infusion of cash into the business and the next month there may be very little. There are business card issuers that are specifically created to address that business issue. Some cards offer business owners up to 60 days to pay without interest, while others offer a discount for paying early. The goal is to have the credit card match the business owner’s needs.

Qualifying For A Business Credit Card

When a small business owner applies for a commercial card, the lender will look at the business owner’s personal payment history, as well as looking at the payment history of the business itself. Be sure to have all of your personal and business information available at the time of the application. As a small business owner, your odds of being approved are highest if your personal payment history is good.

As technology continues to evolve, we can expect continual changes in the world of business. Many of these changes will involve how credit cards are used in the capital financing of business. The roll of credit cards in business continues to grow and develop.