The Importance of Credit Cards for Small Businesses
Small business credit cards are a staple of short-term business financing. Almost every business under the sun has some kind of business credit card, one which allows it inexpensive short-term financing for all its needs. Let us evaluate the rationale behind opening a small business credit card for your business.
Fraud protection
One of the best reasons to use a credit card is for fraud protection. If employees will be making purchases on behalf of a business, a credit card allows for an extra step of protection your business would not receive for checks or cash payments. If a card is lost or stolen, the business is liable for only $50 of the amount charged to a card, and most banks will waive this liability, as well.Immediate financing
Most businesses are approved for a credit card immediately, and approval is virtually guaranteed so long as the individual who owns the business also signs to personally guarantee the balance. Whereas banks have tightened lending standards for other revolving and installment debt for small businesses, the availability of credit cards for small business is still very high. If you have been declined for a line of credit or installment loan for your business, try again for a credit card. A credit card can be used to build up corporate credit history, which will be valuable in the future for securing other types of business credit and financing.
Rewards
Rewards accumulate quickly for business owners. Many report that they spend enough to afford necessary air travel for free for their business, or for their own personal use. As businesses spend far more each year than individuals, the rewards accumulate faster and are also multiplied to a larger degree than the rewards on personal cards. Additionally, sign-up bonuses are also common for a small business credit card, since small business users are very valuable customers for credit card companies.
