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Best Reasons for a Startup to Secure a Credit Card

Best Reasons for a Startup to Secure a Credit Card

As a startup founder, you have a lot on your plate. While there is plenty to think about, financial matters should never be swept under the rug.

At first, you may be reluctant to apply for a credit card. Soon enough, once you learn more, you could find that this is the right decision for you and your growing business.

Here are three of the best reasons for a startup to secure a credit card in the early days:

1. Money on demand. You never know when you will need to make an immediate purchase. Furthermore, you never know when you will be faced with an emergency.

With a credit card, you don’t have to wait to get your hands on the money you need.

2. A higher level of organization. Are you concerned about your ability to track your spending? Are you seeking a way to manage your expenses in an efficient manner? A credit card can help with both these areas.

When you use a credit card for all your purchases, it’s simple to track every dollar you spend. With each statement, you will have a clear idea of what you purchased and how much it cost.

3. Rewards. This is not the only reason to apply for a business credit card, but it’s something to think about. With a rewards credit card, every dollar you spend will result in points added to your account.

Points can later be redeemed for everything from travel to office supplies to cash.

Just the same as an individual consumer, business owners should only apply for a credit card when they are 100 percent comfortable doing so.

With these reasons guiding you, it may not be long before you begin your search.

Do you have any tips or advice for startup founders seeking their first credit card?

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Comments 1

Frank on Thursday, 18 February 2016 11:21

I think if you are fiscally responsible, a credit card for your startup is a good idea. Make sure you know your APR rate, and if possible pay off your credit card every month. Overall though, the benefits outweigh the risks IF you are fiscally responsible.

I think if you are fiscally responsible, a credit card for your startup is a good idea. Make sure you know your APR rate, and if possible pay off your credit card every month. Overall though, the benefits outweigh the risks IF you are fiscally responsible.
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