Credit cards: What you need for your business
Does your business need a credit card? Although I’ve definitely heard of many arguments against having a business credit card, I do think that one is helpful to have in today’s internet-based business world where buying online is fast and convenient. Between payroll, Paypal, and credit cards, I rarely need cash in my business… and it’s probably the same for many of you.
So, if you run a business, how can you find a good credit card to use? In an article posted at BusinessInsider.com, article writer Shira Levine gives 8 things to consider when you get a credit card for your business. It’s a good list, even if there are no surprises here. You should read the full article but basically she advises that you think about:
- Reward programs
- Fees
- Fraud Protection
- Time
- Online Access
- Credit Unions
- Signature vs. PIN
- Acceptance
From my own experience, I would also suggest the following:
- Look for just one credit card; don’t get a big stack of cards.
- Keep the credit limit low. A thousand might be sufficient for most businesses, or if you travel, maybe a couple thousand.
- Put a little money onto your card even if you don’t owe anything. A small “bank” of a couple hundred is sometimes a nice cushion to add during good times and can help out when things get tight.
- Don’t just use your personal credit card, even if you are a sole proprietor. Keep things nice and simple and separate. It’s easier to monitor.
- Schedule 5 minutes every month to double-check your purchases: Make sure you got what you paid for and make sure that it’s providing you the value you want it to provide.
Jessica Routier, IAC-EZ
Posted in: Just Blogging
