Finance Globe

U.S. financial and economic topics from several finance writers.
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Is it Time for a Small Business Credit Card? Answer these Questions

With the new year around the bend, there is no better time than now to take a strong look at what 2014 will bring to your business. For many, this means a focus on finances.

Has your business gone without the use of a credit card in the past? If so, you may want to change your approach in the new year.

Applying for a small business credit card may be one of the best moves you ever make. This will give you access to money without delay. On top of this, if you find an offer with a rewards program you may be able to save your company money in the months to come.

Before you begin your search for a small business credit card, you have to answer the following questions:

1. What benefits will the company experience by having access to a credit card? Don’t do this because it “looks good.” Don’t do this because you think you may need a credit card down the road. Instead, make a list of the benefits associated with a small business credit card. Only then can you determine if this is something you truly need.

2. How are you going to use the credit card? This goes along with the first question, however, you need to dive into the finer details to ensure that you don’t get yourself into a bad financial position.

You can use a credit card for a variety of purchases, including but not limited to: employee travel expenses, office supplies, and paying vendors.

Here is the big question: is it better to use a credit card or should you stick with the payment methods you have used in the past? This varies from one company to the next, so only you can answer this question with confidence.

3. Which credit card will work best for your small business? As you begin your search, you will soon find that there are hundreds of offers to choose from. During this time, pay attention to details such as: fees, reward programs, maximum number of cardholders, and interest rate.

Don’t ever apply for a credit card until you compare multiple offers.

Once you answer these questions, along with any others that may be on your mind, you can decide if now is the best time to apply for a small business credit card.
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Wednesday, 13 November 2019

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