Plastic and Business Expenses

One thing about businesses is that the business expenses can really become unmanageable, particularly if you do not have a system in place to keep track of your expenses and know exactly where your money is going. All businesses small or large and everywhere in between should have a system in place that allows them to keep track of their business expenses. One great way of doing that is with a credit card.
Credit cards, especially if you use one designed specifically for your business can give business owners a great advantage. They allow you to not only purchase items and pay on them later, but also allow you to keep track of your expenses. Some cards are designed to provide business owners with extra services such as online access, which will allow you to print out reports, keep track of the various cards you have given to your employees, and monitor the costs of expenses as you go.
These types of credit cards are an essential element for most any business, regardless of size. In some cases, a business’ expenses may get out of control, having a handle on expenses and costs from the beginning can help avoid this problem. What is great about these types of credit cards is that many even offer rewards for using them in specific areas, which may include office supplies, improvement stores, airline flights, car rentals, and other business related expense items.
Using the right credit card may also allow you to control your expenses right down to the specific type of expense category it falls under. For example, some credit cards offer a service that allows you to view purchases based on categories such as entertainment, car rentals, airline flights, supplies, hotels, and so on. This is a great element for any business owner and can allow you to take control and put a stop of excessive spending in your company. Even if your chosen credit card company does not provide extra benefits like mentioned above, you can still use your statements and receipts to determine where your money is going. Many businesses, particularly those who provide their employees, management, or executives with business credit cards, require that the cardholder submit copies of their receipts for record keeping. This is crucial, particularly for tax time, and keeping track of expenses. By using one credit for all business expenses and only business expenses, you are assured the best method of keeping track. Even if you do not use or are not offered those extras, you will still find comfort in being able to determine how much you are spending, if and when you need to cut back on expenses, and control the spending within your business.
Another great thing about many business credit cards is that they allow you to give employees, administration, and management their own credit cards under the same account. This further allows you to manage your business expenses. You can determine how much a particular employee is spending and on what. This can be beneficial if a specific employee is abusing their credit card privileges.
Furthermore, all expenses will still be on the same account, which keeps the business expenses intact and easily managed. Each cardholder will receive their own credit card and credit card number, allowing them to use it when necessary for a variety of different business related expenses, but will all go under the same account during billing time.
Controlling your business expenses is a crucial step in operating a successful business of any type. The right business credit card will help you do just that, there are many available, do your homework and determine which one will best suit your company and its needs.

Help Your Small Business Succeed With Plastic

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. 

Finance Your Small Business With Plastic

It can be quite difficult to find financing when you are trying to start a business.  Traditional channels such as banks and other financial institutions are normally not too eager to finance a new business, even if you have developed a sound business plan and are highly skilled in your market.  Starting a business, especially an online business based from your home, can be difficult, and you will need a way to obtain financing.  You may be considering using your credit cards to finance your business.

While it is always better to avoid risking your own money when starting a new business, there are many people who have successfully financed a business with credit cards.  If you have a sound business plan the ability to manage your finances wisely, you may be able to use your credit card to finance a business without risking your credit score and your financial future.  Just as with all debts, it is important to pay as much of your balance as possible each month and never make late payments.

There are advantages to using you credit card in financing a business.  It is quick and easy and you will never have to wait for approval or funds when you are ready to make a purchase.  Another advantage is that you can make purchases instantly, without having to write a check or supply vendors with check payment forms, as is often a requirement for a new business.  It would make the most sense to use only one of your credit cards for business purposes.  You will be able to track purchases easily and consolidate your monthly statement easily.

You should know your billing date.  You will be able to make larger purchases just prior to your billing date and prevent interest from accumulating for several weeks until you make your payment.  Always try to pay off the majority of, if not all of your debt each month. You will save a lot of money in interest charges by paying as much as you can possibly afford each month.

Using your credit card will also protect you from losses if you receive damaged goods or fail to receive merchandise you have paid for. Depending on the type of credit card you choose to use for your business, you can earn bonuses, frequent flyer miles, and cash back.  You will need to monitor your spending carefully.  Make certain you use the credit card with the lowest rate of interest and you may be able to contact the credit card company and ask about any possible rate reductions you can get.

Financing your new business with a credit card is not the ideal situation, but for those who are having difficulty obtaining a traditional loan or alternate type of financing, this could be a viable option.  You do not want to risk losing your profits by accumulating overwhelming amounts of debt on your credit card.  Keep a close watch on your spending and pay most if not all your debt each month.  With caution and a smart business plan you can finance your new business with a credit card and instantly find the funding you need. Depending on your credit situation and debt level, you may be able to apply for a credit card in your company name, separate from your personal finances.

Accumulating credit card debt is never the best option, but with wise decisions and smart purchases you can finance your business and avoid the frustration of trying to obtain outside funding.  Starting a new business is an exciting time.  Make smart financial decisions and your business can be profitable in a short time.

Your Small Business Needs Plastic

With more than 600,000 new small businesses started each year, it’s safe to say that the dream of being a successful business owner is a strong one. If you are considering starting your own business, or are already the proud owner of a business- here are 7 reasons why your small business needs a credit card:

1. Keep your personal finances and business finances separate. It’s easier than you think to accidentally mix up your funds. Using a credit card that is used only for your business expenses and purchases eliminates the problem of labeling every transaction in your personal checkbook or on your personal credit card statements at the end of the month.

2. Build credit in the name of your business. If you obtain a credit card in your business name, the more you use it and make on-time payments, the stronger you will build the credit score of your business. After several months of building a good credit history, you may be able to obtain small business loans or other sources of financing if necessary.

3. Get stuff for free. There are numerous rewards programs with credit cards. If you choose one that works for your business, you can easily earn the things you usually buy for free. For example, some rewards credit cards offer you a way to earn office supplies at a discount. The key to making a rewards program successful is to choose one with no annual fee and pay your balance off in full each month. If you travel regularly for business, it would make sense that you get a card with travel rewards- either earn miles towards free flights, or get free or discounted hotel rooms.

4. Easy record keeping. Owning a small business means you are allowed to deduct certain purchases on your taxes, but only if you have good records to prove you’ve made those payments. A credit card with an annual, itemized statement will make tax season a snap, regardless of the number of transactions you’ve made on your card.

5. Additional credit cards for employees. As your business grows, you may find the need to allow key employees within the organization the ability to make purchases or pay for business expenses on your behalf. Most credit card companies will allow you to obtain additional cards in other people’s names. Your transaction listings and statements will show which credit card made each purchase, allowing you to see at a glance whether the employee use of credit is being abused or not.

6. Concierge services. Depending on the credit card you choose, you may benefit from additional services like reservation assistance, verification of flights, and even a personal shopping service. Did you forget to get your wife flowers for your anniversary? A quick call to your credit card concierge service and they can make the arrangements for you.

7. Travel benefits. In addition to the potential to save money on travel costs with a credit card rewards program, most credit cards offer travel accident insurance that helps cover you for things like lost luggage or flight cancellations

Using Cash Back Plastic

    Many merchants and large department stores offer their customers credit cards with a “cash back” option, hoping that the credit cards will entice their customers to do more of their shopping in their particular store, and charge their purchases with the credit card in order to receive the cash back reward instead of making purchases with cash.  The two most common forms of cash back programs will either provide cardholders with a credit to their credit card balance when a purchase is made using the card, or the cardholder will receive coupons in the mail to use in the store during the next visit in order to receive a certain dollar amount off their total purchase price.  The actual dollar amount of “cash back” reward you receive will depend on the terms and conditions of the program itself, which vary from card to card, as well as the actual amount you charge on the card that offers the cash back incentive.  Cash back credit cards are extremely popular with department stores, because the only way a cardholder can benefit from receiving cash back is to make purchases using the credit card in their store.

            If you are deciding whether or not a cash back credit card is the best option for your spending habits and credit needs, consider whether or not you are a frequent shopper in any particular department store.  If you tend to do a lot of shopping in a store that offers a cash back program, it makes sense for you to obtain their cash back credit card.  The trick to using a cash back credit card, which tend to have a higher interest rate than a card without the cash back program, is to make purchases each month on the card that you will be able to pay off on a monthly basis.  You’ll receive the rewards, and pay minimal interest on the purchases since you are paying them off on a regular basis.

            Not all cash back credit cards are limited to a specific store, however.  There are some credit card companies who offer a regular Visa or MasterCard that can be used everywhere credit cards are accepted and who offer cash back reward programs for spending done using the card.  If you are a person who doesn’t really shop in one specific store all of the time, you’ll want to research the credit cards that are not store specific that offer the cash back rewards.  Be sure to research the terms and conditions of the card completely before signing up, as many cash back credit cards require you to pay an annual fee, have much higher interest rates than cards without cash back rewards, and in some cases- the credit card may require you to carry a balance from one month to the next in order to receive the cash back benefits, which means that you will probably pay more in interest than you will receive in cash back credit.  Try to determine how much money you plan to charge on the credit card throughout the year, and then following the conditions of the cash back program, figure out how much cash back those purchases are likely to earn you.  Once you have these numbers, you’ll be able to decide whether or not the annual fee you pay for the cash back credit card is worth the cash back you actually receive.  If your annual fee is significantly higher than the amount you estimate you’ll receive in cash back, you’d be better off selecting a credit card with lower interest and no annual fee that does not offer the cash back rewards.

Your Credit Card Flavor

Life styles are what make people unique. The way we wear our hair, the type of clothing and fashion we prefer, and the selection of decorations within our homes all makes up an individual’s style. The type of credit card we choose, and how we use it is also part of our individual “financial style”. As people grow from children to adults, they often are seen imitating what they see their parents and close circle of friends doing. Just walk through the halls of any middle school, and listen to how certain groups talk and look- it’s almost as if they have their own mini-cultures! Children often learn how to handle (or not) their finances by watching their parents or caretakers’ deal with finances. If the parents spend money like water, the children will probably grow to do the same. On the other hand, if the parents were careful with their finances, paid every bill on time, discussed money matters with the children, then chances are- the children will become adults who have very few credit cards and do not carry a revolving balance from one month to the next. Regardless of your personal credit card style and habits, it never hurts to be reminded of the most affordable way to use your credit cards. It is most financially efficient to pay your credit card accounts in full at the end of each month, and there should be little to no balance carried from one month to the next. Of course, most people don’t have that sort of credit card style- as evident by the number of people who have several thousand dollars racked up on a few different cards! One of the best things you can do with your credit cards if you have cards with balances on them, is to find the 0% transfer balance deals and move your debt from the cards that you are paying interest on to the new card that allows you to make payments without paying interest. This is a “financial style” everyone can appreciate! Most deals give you a specific amount of time to pay on the transferred balances, and as long as you make the monthly payments on time, you will not be charged interest on the balance you transfer. This is a great way to pay down the old debt and not be charged additional money in the process. Just take care to cancel and close out the original credit card(s) that the debt comes from, otherwise you are likely to keep spending on those cards while you are working to pay off the debt you just transferred off of there! This is a recipe for financial disaster! Another popular credit card style is to cash in on the cash back credit card options, and rewards programs that actually give you something back for using their card. There are many of this style of credit card available, but you need to really understand the credit card terms because sometimes rewards cards have higher interest rates, or annual fees that cost more than what you earn back when using the card. Typically, cash back and rewards credit cards are best for individuals who do their daily spending on a credit card, and pay off the balance at the end of each month. That way, you aren’t carrying a balance and aren’t being charged interest, and you are earning the maximum rewards or cash back by using the card often. If your credit card style is to have a card in your wallet for emergencies only, then chances are you are not going to benefit from a cash back or rewards card. Taking time to understand your personal credit card style can help you find the best deals when it’s time to get a credit card, or move your debt from one card to another. If you are a frequent flyer, it would be worth the time and effort to compare different credit cards that feature rewards in the way of miles that can be redeemed towards your air travel. If you like to save on gasoline or at a particular store, you can find a card for that as well! A little research goes a long way in finding a credit card that would work the best for you financially, one that your name would be in “style” on.

Credit Cards Easier Than Ever To Get

Gone are the days of waiting several days or weeks to be approved for a credit card. While it is still possible to apply for credit via “snail mail,” it is now more common than ever to apply for any type of credit via the Internet. With the help of the Internet, it’s possible to apply for and receive approval on a line of credit in a matter of seconds or minutes.

Many wonder whether or not it is safe to apply for credit via the Internet due to the fact that so much personal and confidential information must be entered into the computer in order for the credit application to be completed. The truth is, most legitimate banks and credit agencies have highly advanced systems which protect potential credit customers from any sort of fraud. However, it’s always a good idea to make sure the computer being used to apply for credit is fully equipped with the most updated anti-virus software and anti-spyware.
An on-line credit application should be very similar to a paper credit application in terms of what is asked. There are many common questions on both forms such as contact information (address, phone number and e-mail address), information on the household’s annual income, banking information, and the standard question, “What is your mother’s maiden name?”

While questions such as those listed above are common, there may be additional questions on an on-line credit application which can be completed for anyone who is trying to obtain a higher than normal line of credit.

Is applying for a credit card or line of credit via the Internet better than applying for either using a physical piece of paper? The answer is, “yes and no.” First of all, applying on-line can produce very fast results. If credit is needed immediately, using the Internet is a good way to obtain it. Virtual forms are usually easy to complete, and it’s practically impossible for an electronic application to get lost at the post office!

However, with an electronic application, there is no physical evidence of an application being filed. While an electronic application can usually be printed, it’s not as official as having a “real” application in hand. Nonetheless, this is usually not an issue or problem for most people.

On-line credit offers often entice people because they may come with a free gift, a lower interest rate, or a complimentary airline ticket anywhere in the world. Credit applications that come in the mail may also offer such deals, but when using the Internet, it’s much easier to see a multitude of credit offers all at once, which can help ensure that the best one is chosen.

Applying for an instant credit card or line of credit can be quite easy for a person with a good credit score, but it’s not always so easy for people who have bad credit. Don’t forget that a credit agency will almost always run a credit check prior to offering credit to a person. A credit check can be obtained within seconds, and if the score is too low, it’s common to receive an electronic response that says, “credit denied” or “additional information needed.” In other words, an on-line application does not guarantee that a credit offer will be extended.

On-line credit card approval is definitely a convenience because it is fast and easy. However, it’s important to remember to carefully review all of the terms and conditions of the credit offer prior to applying for and accepting it. Some sites offer a wide array of cards with special deals and promotions,one of our favorites is: