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. |
