A business credit card is obtained in much the same way as a consumer credit card is. They have a very similar application and approval process, you still get charged interest if you carry a balance, and they have an impact on a credit rating, but usually on the businesses', not the consumer's.
Low interest rates, easy online account access, rewards programs, and services to support business needs are all trademarks of credit cards for business. Also, their credit limit is often times higher than what you are used to as a consumer.
Normally, for the average small business owner, personal credit is checked in order to get a card in your company's name. Most businesses don't have a credit history, so the banks have to rely on the history of the owner, so you are basically guaranteeing your company's credit card.
A business credit card is an excellent tool for managing the expenses of your small business. They allow you to easily track the spending of business funds, and let you keep track of employee spending habits.
Quarterly and annual reports of spending is normally included with a business card. This helps you see where your money is spent throughout the year and even allows you to compute future budgetary needs.
Another feature of a business credit card is rewards programs. These can be similar to what is offered on a normal consumer credit card, but generally have rewards that are more tailored to the needs of a business owner, or the company itself.
When it comes to managing expenses and helping grow your business, a business credit card is a great tool to have. You do need to find one that fits the needs of your business, giving your company maximum benefits.
You have to use a business credit card as a tool to benefit your company, and they should never be abused. Because they are generally targeted directly at the small business owner, they are an affective financial tool that can adapt to the needs of your business.
