Business Credit Cards

Business Credit Cards

Most people find it difficult to manage their personal finances without a credit card, and it is really no different for businesses that must be able to meet short term financing needs while effectively managing their cash flow. Establishing a credit card account is essential for businesses transitioning from their start-up phase into their growth phase as much for access to credit as it is for enhancing their credibility within the business community. Businesses have access to a wide variety of financing options for their expansion needs; however, credit cards can play a vital role in the short term cash management function that is critical to a growing business. Here are five ways how a business can use credit cards to improve its cash management:

Separate Business and Personal Finances: Nothing raises the ire of IRS agents or accountants more than having to sort through records that mix business and personal expenses. Businesses risk increasing their costs in the additional time it takes their accountant to prepare their taxes, as well the possibility of IRS audits triggered by commingled record keeping.

Purchase Control and Convenience: Increasingly, businesses use the Internet to purchase supplies and book travel which makes having a credit card more essential than ever. And, having a credit card available when a unique opportunity arises will eliminate the need to use personal checks or credit cards which can muddle record keeping. Credit cards with set spending limits are also the best way to track and control spending by employees. Extra cards are available for company employees at no extra charge.

Cash Management: Credit card financing can be an effective strategy for covering the cost of doing business in anticipation of the revenue it will generate. Businesses can take advantage of the 30 day billing cycle of credit card accounts to purchase inventory or materials needed for a customer order that can then be repaid upon receipt of the customer's payment. And, because, credit card transactions generate multiple records through physical receipts, transaction reports and online statements record keeping is much easier. Many business accounting software programs are able to import transaction data from online accounts which virtually automates record keeping, data compilation and cash flow analysis.

Earn Rewards: Using credit card cash back and rewards programs designed for businesses can have a significant impact on cash flow. Some programs offer cash back on gas and office supply purchases which can, in turn, be used to pay for those same essentials. Travel rewards programs can benefit businesses that rely upon air travel, lodging and car rentals.

Build Business Credit (while protecting your own): A business needs a credit score as much as an individual does. A credit cards account with a solid payment history is one of the quickest ways for a business to build a credit history which can open the door to other financing options. And, because business and personal credit activities are reported separately your personal credit score is not likely to be affected by any adverse reporting such as inquiries or high debt to credit ratios.

Business Credit Card Options

Basic Credit Cards

Basic credit cards provide businesses with a revolving line of credit that can be used for any purchases up to the credit limit. The account requires at least a minimum monthly payment to avoid late fees. Any balances that remain on the account after the grace period are charged interest based on a variable APR. Most basic credit cards don't charge annual fees.

Businesses can manage their card accounts online with complete access to transaction records, payment and account transfer capabilities, and monthly spending reports for easy and accurate cash management.

All of our business credit cards provide many added benefits and protections such as zero liability on lost or stolen cards, fraud monitoring and alerts, extended purchase protection and travel insurance. And all of our business customers have access to our 24/7 customer service desk staffed by business specialists.

Cash Back Rewards and Travel Rewards Cards

Businesses have access to a range of cash back and rewards cards so they can match the type and level of rewards to their spending needs. Some cards generate higher rewards for business-related spending such as travel and office supplies, but rewards are earned on all purchases made by the business or any of its employees. Businesses that spend a lot on travel-related purchases can benefit from a travel rewards card for earning points that can be redeemed for flights, hotels and car rentals.

Charge Cards

A charge card is similar to a basic credit card in every way except that it requires the balance to be paid in full each month. Businesses that prefer a more disciplined approach in their spending and that want to avoid accumulating debt may opt for a charge card which usually comes with no pre-set spending limit. Our charge cards are linked to cash back or rewards programs so purchases made by the business and its employees can generate points towards cash rebates, discounts or travel rewards.

Debit Cards

Many businesses opt to use debit cards if they are concerned about controlling their spending as well as their debt. Business debit cards are linked to your business checking account which dictates the spending limit. Our business debit cards come with many of the same features and protections as our credit cards including zero liability and purchase security. Our business debit cards come with no annual fee and are available to employees at no extra cost.