Credit Cards Article

Effectively manage your business credit cards

Author: Mark Turner

Business credit cards can be vital to a new and growing business. There are many reasons why using a credit card for business purposes is more beneficial than using cheques or cash. You don\'t have to carry around large sums of money belonging to your company, which can easily be lost or stolen. You don\'t mix up your personal and business finances, as a business credit card is immediately recognisable as \'different\' to your personal cards. Using credit cards is cheaper than using cheques, and money that you spend instantly appears on statements, so that you can\'t be caught out by forgotten amounts. Also, there is only one bill that needs to be paid at the end of each month, and monthly statements to help with your finances.

There are many other benefits that can be reaped from clever credit card use that can help your business no end. Business credit cards often work in a similar way to personal credit cards. They also come with similar benefits and features. Some of the features that you may find on offer are: 0% on balance transfers; 0% on cash purchases; and loyalty schemes, such as free Airmiles. Other features include the ability to withdraw cash at a cash machine, the ability to use the card abroad and so forth. Some of these features can be used creatively to help your business whereas others should be avoided at all costs.

As you can use business credit cards instead of cash and cheques, and because the funds are taken from your business accounts immediately, it means that you can keep track of your company\'s spending like never before. You will be able to see instantly how much has been spent and the figure will be \'real-time\' - you won\'t be caught out by any sneaky cheques waiting to clear. You will be sent one bill at the end of each month that can then be paid off. Financial advisors recommend that you pay off the balance in full each month.

0% on cash purchases can also be used in a similar way. You could make a purchase on the card and then not have to pay interest on that item for a number of months. This means that you can pay off the expenditure from profit that you are receiving from an item you never had any money for in the first place. In fact some people have even used credit cards to start businesses in this way; most famously Google.

It is strongly recommended, by most financial experts, that you should avoid drawing cash out of a cash machine with a business credit card. In reality there should be no reason why you would need to do so. If you do draw out money with your card you should be aware that there are normally charges for doing so and that the interest on cash withdrawals is often higher than with simple card purchases.

It will be good to know that business credit cards are offered with many enhanced security features. They use the same chip and PIN technology as other cards and also have a security code on the back. Internet fraud is often covered by the card provider\'s fraud guarantees so that if money is fraudulently stolen it will, in most cases, be returned. Similarly business accounts are monitored by intelligent fraud protection programs, so that any unusual spending is noticed and questioned. Finally you will be able to access your company\'s accounts online, providing an easy and efficient way of keeping an eye on your company\'s finances. These online banking systems also come with a host of added features that can make business even easier.

Mark Turner is an experienced financial writer who posts regularly on various popular websites. Find out more about business credit cards and 0 percent business credit cards here.