Business credit card is one of the most popular business tools. If you are looking for a business credit card, there are some things you need to consider and things to watch out for. Business credit card is a bit tricky because there are two types of business credit card. One is the business credit card that you can actually use for making payments on your regular expenses and another one is the business credit card that actually provides you with the facility to use for those expenses.
How to get a business credit card
1. How to get a business credit card?
First of all, you need to have a business that is making an income from its regular business activities.
2. What kind of expense can be paid?
You can pay for your expenses such as rent, electricity and telephone bills for your business. If you have a car in your business, then you also can pay for the fuel and maintenance cost. You also can get a secured business credit card that provides you facilities to use while you are in the payment process with it (for example, paying gasoline). If your company generates cash flow from your monthly income by some means other than bank account payment then it is not suitable for using this kind of credit card.
3. What are the requirements?
The business credit card is a very easy and informal system which is generally recommended for small business owners. You need to ensure that you have the basics in order to meet the requirements. For example, if you have just started up your business then you can apply for your business credit card. If it has been your company for some time, then you will be required to fill in the application form and also submit a detailed bank statement of your current year financial condition and balance sheet of your company. For business credit card, you need to make sure that both the company and you are able to repay the amount provided by the bank on a monthly basis without any hassle.
4. What is the use of business credit card?
Business credit cards function as a form of payment for your regular business expenses. These are generally accepted at banks, gas stations and retailers. Although some businesses may not want to use cards, they can be quite useful for those businesses with fixed-dollar amounts such as cash purchases in bulk or income businesses such as dry cleaning where fixed-dollar purchases require paperwork and accounting.