Many business owners want to accelerate the growth of their business, but that usually depends on a little more money available. With this, they could advertise more, replace old equipment or buy new ones, increase their inventory to sell more items, etc.
Some business owners take things in hand by funding these expenses out of their funds. However, the use of personal credit cards for business projects is a risky business since you assume total responsibility. If your business, God forbid, be pursued or bankrupt, you risk losing your personal property and the good credit that took you years to build.
Now, what is going on there was a way to free some of the necessary money that you currently use to support your business, by matching some of your expenses to items that your business already buys on a regular basis? Well, it exists and it's in the form of professional credit cards.
In other words, if you pay $ 500 a week in real estate supplies to repair your properties, but you now make the same purchases with business credit cards for one month only, this would temporarily release $ 2,000 in cash. from your account. usual operating budget.
Of course, you are responsible for paying the balances on all the business credit cards you receive, but that would be over a period of time sufficient for you to make a profit on the $ 2,000 used on business credit cards before the first payment. of . Do you see how much business credit is to your advantage? Let's go a little further.
Business credit cards are an extremely fast way to get resources for short-term needs while increasing the purchasing power of your business. But it must be used economically and not spend money to spend money simply because it is available.
Other benefits include:
• Business owners with limited credit history or credit history may apply without meeting the strict requirements of traditional banks.
• It is much easier to shop online and make cash withdrawals from these lines of credit.
• Accounting is simplified with the use of monthly statements and end-of-year statements to track expenses and pay taxes.
• Unlike installment loans, business credit cards offer discounts and rewards that can be used for air travel and other purposes.
• Business credit builds credit. By paying on time and paying more than the monthly minimum fee, you are encouraging lenders to increase credit limits and lower interest rates.
As with any credit, business credit has certain qualifications for approval:
• 720 credit score
• no bankruptcy
• No seizures
• No late payment in the last 24 months
• Possession of a credit card with a limit of $ 5,000.
Building a good credit record allows you to no longer rely on your personal credit to support your activities. It also helps you qualify for future financing of your business by traditional lenders.