Business credit cards can be a useful tool if handled correctly. No one accepts a credit card with the intention of mishandling them. Without some guidelines for use however, some things are inevitable. These three simple rules are a good start to making sure your credit cards help your business, rather than hurt it.
If you are making a conscious decision to get a credit card for business, do not just accept whatever offers come in the mail. Go looking for the best deal you can get. Shop around to compare terms, rates, and rewards. Business credit cards come in all shapes and sizes with various perks. Never settle for the first thing you see. Take the time to find the best one for your business.
Limit what the card can be used to purchase. Maybe you want it to be only for emergencies. Maybe you want it to be primarily used to take advantage of inventory discounts when available. Perhaps you intend for it to help with cash flow gaps due to accounts receivable turnover rates. Whatever the case, set limits, and stick to them.
Limit who has access to the card and who can use it. There is no reason for everyone in management to have access. The limits you set on its use will help determine who should be able to use the card. While it can be helpful to have more than one person be able to do so, be certain not to go overboard. Too many authorized users leads to lack of control, which leads to a lot of trouble when it comes to small business credit cards.
Whether you are looking for credit cards for business or other business financing options, Biz2Credit can help. We have a network of lenders and can put you in touch with the ones that have the financing options that best fit your needs. Visit Biz2Credit.com today for more information.