Being the owner of a small business requires you to take on a lot of responsibilities such as meeting client requirements, offering clients the best service, and handling your employees’ welfare as well. It is a great relief that credit cards are offered to small business owners with convenient payment and interest options. However, you can’t deny that having a small business credit card is a big responsibility because just like any other credit card spending can get out of control this could make running your business nightmarish.
Here are some ways you can maximize the use of your small business credit card:
Make good use of interest free days: When you start a business, you may have to wait on your customers to pay you before you can pay your own bills. Time is money. Waiting for payments often leads to an increase in everyday costs and bills. You might also have to put off paying for new equipment, marketing/advertising schemes, or maintenance until you can manage to pay for it. At such a time, you can utilize the interest free days on your business credit card to keep your business up and running. Most credit card companies offer an interest free period for up to 55 days which gives you enough time to wait for your invoices to be paid. Meanwhile you can spend using your credit card to keep your cash flow smooth and your business running efficiently.
Avoid accruing interest: It is essential to pay off your balance in full before the end of the interest free period because interest charges can quickly mount up, especially on large amounts. So, when your customers do finally shell out their due payments, immediately clear off your credit card balance.
Do not make any personal dealings off your business credit card. Just because you are the owner of the small business and have authority to make transactions does not mean you can make the card your personal payment tool. Even though the card is issued in your business name, it should never be used for personal use as it is unethical and unprofessional, and it will become difficult for you to keep a track of your purchases.
All business payments should be made on your credit card. To make it easier to manage and track your purchases, keep them all in one place, your business credit card. You will have a single statement for your operating expenses and a record of all your purchases for the business in a month, so you can evaluate your business expenses and provide a complete summary of your expenses to your accountant when paying taxes.
Gain credit rewards points and boost your business credit rating. Even though you must never spend your business card just for the rewards, business cards often have a wide-range of rewards and benefits if you use your card smartly. Do keep a regular check on your points balance to see if any points are expiring soon and need to be used. Using reward points will save your business money and you often get great deals such as a discount on office supply. Regularly and responsibly using your business credit card helps to build a strong credit history for your business.
Stay in control and be organized, this will keep your expenses in check – be a responsible business owner!