If you’re wondering whether you should consider getting a business credit card or how they differ from other forms of credit we have the answers for you.
A business credit card is a convenient way to quickly access financing for short-term needs and can help increase your company’s purchasing power.
Business credit cards provide business owners with easy access to a revolving line of credit, with a set credit limit, in order to make purchases and withdraw cash. Like a personal credit card, a business credit card carries an interest charge if the balance is not repaid in full each billing cycle. You can continue to borrow or charge up to your credit limit as you repay your monthly bill.
A major benefit of a business credit card, compared to a loan or fixed line of credit, is that business credit cards do not require that you put up collateral to qualify for the line of credit.
A business credit card also provides business owners with a financial ‘cushion’ when accounts receivables are behind or sales are slow and the business is short on cash. Using a business credit card makes online transactions easier when doing business with vendors, contractors, and suppliers.
In addition to receiving a monthly statement, you can also keep track of your spending with online record keeping tools to manage your accounts, including a year-end account summary, which can help your bookkeeper track, and manage expenses. A business credit card can simplify bookkeeping, help when using outside professionals to navigate an audit and pay taxes, and provide an easy way to monitor employee spending too. Employee credit cards are offered at no extra cost.
Many business credit cards, similar to personal credit cards, offer rewards and benefits, such as travel.
At Warren-Boynton State Bank we offer Visa Company Rewards Charge Cards with fraud monitoring and zero fraud liability, chip card security, and 24-hour customer service located in the US. For more information go to the business credit card page at https://www.wbsb.net/business-banking/credit-card/.