Do you own a business? Do you know about business credit cards? Businesses are risky. It requires a good amount of capital for their success. Credit cards are a must-have thing for you if you own a business. These credit cards are different from general personal credit cards. So if you want to know about business credit cards, it’s uses and benefits. Then this post will prove to be useful for you. Also, we’re going to provide a full 5-star processing review, a trustworthy place where you can get your business credit cards. So without wasting our time, let’s go directly into the topic.
Before knowing the profit and loss related to these cards, it is essential to learn about them. A business credit card is a typical card for business use rather than for the individual’s purposes. You can own a business credit card even if you own a small business. It helps you to improve your credit score to enhance future borrowing terms. They have some of their benefits but at the same time lack some benefits that you get on an individual credit card. Now let’s talk about how these cards work.
Many bank authorities offer credit card services. The process for applying is the same as the standard credit card. Business owners can apply for a business credit card with or without an employer identification number. The application of business credit cards is easy for small businesses and startups.
Business cards are easier to apply for business loans. It is a natural process. In other words, there is no involvement of a third party. Also, this process is less lengthy and fuss-free. The problem with business credit cards is the rate of interest. These cards have a higher rate of interest than standard loans. The reason behind the higher rate of interest is the uncertainty of the borrowers. The lenders are at greater risk when they provide credit cards than granting loans.
Business cards have credit reports the same as individual cards with a credit history. It assures that any EIN activity will be visible in the business credit report.
Are you still confused about the advantages you will get through business credit cards? Do not worry! Let us look at the pros of business credit cards.
- Manage expenses – Business credit cards are an excellent way to manage costs. In addition to the offerings served by the individual credit card, a business credit card also helps the small business owner. It helps its owner to keep their work-related expenses separated from their costs. This separation is helpful for accounting and tax purposes. It also allows the employees to buy required things without any fuss. At the same time, it gives the owner the luxury to keep an eye on the money spent by the worker.
- Purchase protection – With these cards, you get security. You can dispute any charges which are improper on the account. You can also avoid making payments until the dispute is solved. Many credit cards also give you purchase protection. In case your purchase is lost or stolen.
- Reduce cash flow problems – When we start a new business, the budget is more likely to be tight. It can help you make essential purchases when you have some funds. It helps your business to work inflow. In this way, you will be able to handle the ups and downs at the workplace.
- Easy to apply – Applying for business credit cards is more manageable than personal loans. It is hassle-free. It is also advantageous when you have less or no collateral.
- Better company credit – Building up good company credit is vital for your business. You get money at lower interest when you improve your credit score. This fact is also actual about the business credit card.
- Better facility – Compared to personal credit cards, business credit cards provide numerous facilities. It includes a higher card limit, discounts for early payments, etc. It also offers more points for cash-back, waived airline baggage fees, hotels, and car rental discounts. Business cards are advantageous if you need to travel extensively for your business.
Before applying, we must tell you about both sides of the business credit cards. Everything has its advantages and disadvantages. The demerits are almost negligible, still vital to mention.
- Personal credit issues – Mostly, business cards require a personal guarantee. It means you have to give the previous credit history or social security number to qualify. Sometimes this creates an issue when the credit companies report business activity on your card.
- Security issues – Sometimes, you also have to face some security issues. There are changes of fraudulent charges from the stolen card number. But you can prevent this problem if you are careful while using your card number. Possibilities of employees getting an advantage from your business credit card increases if not handled carefully.
If you plan to apply for a business card, these are the minimum requirements. Your card is approved once you fulfill all the requirements.
- Minimum personal FICO score should be above 300
- EIN/Tax ID Number
The 5-star processing business cards will give you all the benefits mentioned above. The application process is easy. And the group of members of the company is always available for your help. They also claim that their credit card processing fees are lower than the other companies in the market. You can also check their review on social media sites like Facebook and Instagram.
If you are a business owner, business cards are beneficial for you. It provides several facilities. Also, help you in your ups and downs. The method of application is easy and reliable. There are some disadvantages too which you can prevent if handled carefully.