Business Credit Card
Business credit cards are valuable instruments for saving thousands of dollars consistently. You can save more from your business costs by utilizing a credit card with incentives like hotel stays, cash back, and useful discounts. Call us at 213-314-1200 for more information or click here for a Quick Response Form.
On the off chance that you have a business — new or old, big or small— you ought to consider getting a business credit card. Business owners need access to credit, and these specific business rewards credit cards can be an incredible method to subsidize buys, oversee spending and help set aside cash as well as earning rewards with continued usage.
Keep in mind, business credit cards aren’t simply held for big companies with various employees and physical offices. You can qualify for a business credit card as a sole owner, which implies that your freelance or self-employed gig could make you qualified.
What is a Business Credit Card?
Business credit cards are just credit cards intended for business use as opposed to personal use. You don’t have to have a conventional business structure to get a business credit card – even freelancers with “side gigs” can be entirely qualified.
Business credit cards are like personal credit cards from multiple points of view, yet there are a couple of key contrasts. The application requirements are different: the credit limits are typically higher and there are no legal protections, which consumer credit cards usually have.
So why get a business credit card? Since business costs are tax deductible, it’s a decent path for business owners to keep business and personal costs segregated. They can also enjoy rewards when shopping for common business spending categories, like office supplies. Additionally, with business credit cards you’re probably going to have the option to acquire more cash than you would with a consumer credit card.
Try not to mix up small-business credit cards with corporate credit cards. The prerequisites for getting a corporate credit card are a lot harder. One of these includes that a business should already have a few million dollars in yearly income to qualify.
What are the Benefits of a Business Card?
- Quick & Accessible Capital
Business credit cards can be a source of fast and helpful capital that can be utilized for any business need. This could include:
- Working capital or cash flow management – credit cards can overcome an issue between the requirement for a cash cost and the receipt of payment by the client
- Startup capital – Business proprietors can utilize credit cards to pay for initial organization setup and costs. For example: stocks and marketing.
- Development capital – Businesses can utilize business credit cards to put capital assets, like machinery, furniture or other equipment set up. This gives your business time to accumulate income while taking care of the balance over a period of time.
In the event that you have a retail business in a tourist area, you will undoubtedly encounter more profit during the summer season. In this way, you may be enticed to utilize a credit card during the offseason as an advance to counterbalance your decrease in cash flow.
But you should pause for a moment. Interest rates on business credit cards are high in contrast with the rates of other different types of financing, like for example personal loans from a bank. Credit cards are not to be used as long term loans since you end paying such a great amount in interest. Put some effort in paying off your acquisitions before the grace period ends.
2. Separation of business and personal assets
When utilized persistently, business credit cards can assist you with keeping your personal and business funds separated. It’s critical to set up limitations to prevent your funds from mixing. This guarantees you are personally shielded from business liabilities.
3. Bookkeeping and accounting features
Look at the kinds of management tools that accompany business credit cards. These features are useful in the event that you have workers and need to monitor their costs.
- Survey regularly updated use reports for every cardholder on the record
- Setting spending limits on individual cards
- Dropping or suspending credit cards
- Seeing historical activity for each card instantly
- Setting up account alerts for individual cards
- Modifying cash advance limits
- Accommodating exchanges against statements
- Sending programmed information feeds to your accounting/bookkeeping programming frameworks
- Consequently isolating costs into classes to help with cost management
- Giving access to account controls by means of cell phones
4. Tax benefits
You can maximize tax deductions by purchasing capital equipment and use the tax-planning opportunities.
Tax simplification lets you have access to reporting and accounting features where you can easily download detailed reports of all costs charged using the business credit card.
How do Business Credit Cards Work?
Business credit cards are basically credit cards intended for business use as opposed to personal use. While business credit cards work a great deal like personal credit cards, they are exceptional in a couple of ways.
One significant distinction to remember is that numerous private venture credit card backers report your business credit movement to both shopper and business credit authorities. Also, not at all like buyer cards, business credit cards aren’t secured under the Credit CARD Act of 2009. This implies customer assurances in fact don’t have any significant bearing to business cards, so your APR could change without notice or you could be charged high expenses for minor infractions.
Business cards likewise will in general accompany higher credit limits than personal cards and are bound to offer prizes in business-related spending classes, for example, office supplies and telephone and web costs.
Business credit cards are frequently used to construct an organization’s credit history, improve its cashflow and keep business costs separate from personal charges. They can assist you with sorting out costs, win rewards and save money on premium installments, so regardless of whether your business’ spending is unobtrusive, picking the correct business credit card can spare you enormous aggregates of cash each monetary year.
How do I Get a Business Credit Card? What Documents do I Need to Qualify for a Business Credit Card?
On the off chance that you’ve applied for a personal credit card previously, the business credit card application won’t look so different. It’ll simply have some extra fields with inquiries concerning your business on the standard personal data.
Normally, this is what you’ll have to give:
- Business name: If you have a company, LLC, or DBA, state your business name. On the off chance that you have a sole ownership, use your name.
- Tax Identification Number: You’ll have to give your Social Security number (SSN), Employer Identification Number (EIN), or both. In spite of the fact that you needn’t bother with an EIN to apply for a business card, they’re allowed to acquire — and permit you to round out tax documents and agreements without sharing your SSN.
- Business type or your job: Select the class that best accommodates your business, and afterward compose a title that depicts your job (originator, proprietor, CEO, and so forth.).
- Contact information: If you have a locally established business, you can utilize your personal contact (email, telephone number, and so on.) information here.
- Years in business and number of workers: Just starting out? Put zero for a considerable length of time in business, and one for number of employees..
- Yearly business income: While it tends to be enticing to overstate this number, don’t. Trustworthiness is consistently the best arrangement — and banks now and again request desk work to check your numbers. You’ll likely remember your personal salary for your application, as well, and if that and your personal credit scores are solid, you have a strong possibility of getting endorsed.
- Estimated monthly spending: How much you intend to spend on the credit card every month.
You’ll additionally need to give standard data about yourself, similar to your personal salary and possibly your month to month lodging installment.
For more info contact us at 213-314-1200 or click here for a Quick Response Form.