HOW TO START A WINDOW CLEANING BUSINESS
Business credit cards are designed to help businesses simplify their finances and buy things they may not have the money for right away. With that in mind, business credit cards can also be debt pools if you do not know how to use them properly. Before you set out on getting a business credit card, you need to figure out whether or not that is necessary for your company. Should you get a business credit card? Let’s take a moment to find out.
Before we explore the benefits of business credit cards, you need to understand what this card actually is. A personal credit card is tied to your personal credit history, which is linked to your Social Security Number. A business credit card represents a line of credit for your business, not you personally. Your personal credit may be used to qualify you for a business card, but the payments you make (or do not make) on the card will be linked to your Employer Identification Number (EIN). If you do not have one of those for your business yet, you can apply for an EIN online through the IRS website.
Business credit cards have one major advantage that standard credit cards don’t offer: the ability to build business credit. If you have an LLC, corporation, or other formal business frame, you have a chance to build credit for the business just like you would for yourself. In that case, you can get loans through the business and much more without involving your personal credit whatsoever.
Business credit cards offer higher credit limits than personal credit cards, since businesses tend to spend a lot of money throughout the year. If you need to build an addition to your office building, you may not be able to do so with a personal credit card alone. Of course, if you have good personal credit, you might be able to get a sufficient line of credit for almost anything. It depends on your personal situation.
Yet another benefit of having a business credit card is the fact that you can give certain employees access to it without risking your personal credit. Most business credit cards can be issued under multiple names, with the business name still featured on the card. You can track each user’s spending habits and see if anyone is abusing your company’s money.