From flight tickets to employee fuel reimbursements, we know your company has an untold number of annual expenses. Many business owners find cash flow management to be one of the most tedious and challenging parts of their job, as keeping all those dollars in check is what keeps the doors open! To help with various financing needs (e.g. the purchase of new office furniture, vehicle repairs, and everything in-between) and act as a safety net when things do not go as well as planned, opening a corporate credit card is a smart idea.
For new-startups that lack adequate credit standing to attain approval for a bank loan, a line of liquid cash is a convenient and effective alternative. Perhaps not surprisingly, an increasing number of small business owners applied for commercial credit cards in the wake of the financial crisis a few years ago. This was the inevitable response to lenders who tightened their approval requirements, but keep in mind that there are many benefits to using corporate credit lines in a healthy economy.
Get a credit card for your business!
One of the top reasons to apply for a commercial credit line is for expense management. Life is much easier when the bulk of your spending is being processed through one source. Instead of struggling to sift through a sea of invoices, wouldn’t you rather receive a single monthly statement that provides a thorough breakdown of all charges? There is no need to crunch numbers or fret over potential human filing errors!
A false assumption about business credit is that it affects the applicant’s personal credit as well, which can obviously stir some apprehension. Fortunately, this is not at all the case. None of your corporate transactions, positive or negative, will affect your individual score or rating.
Just as an adequate, personal credit history is essential for becoming trusted by lenders, the longer your business is in good standing credit wise, the more apt banks will be to finance your commercial ventures. In other words, your company’s reputation is on the line, so go ahead and build that corporate credit!