There are many business owners who want to accelerate the growth of their business, but it usually depends on having a little more money available. With this, they could advertise more, replace old equipment or buy new, increase their inventory to sell more items, etc.
Some business owners take matters into their own hands by financing these expenses with their personal funds. However, using personal credit cards for business companies is a risky business, as you take full responsibility. If your business, God forbid, is ever sued or goes under, you risk losing your personal possessions and the good credit rating that took you years to build.
Now what if there was a way to free up some of the necessary money that you are currently using to support your business, by matching some of your expenses with items that your business is already buying on a regular basis? Well, it does exist and it is in the form of business credit cards.
In other words, if you dole out $ 500 in cash each week on real estate supplies to make repairs to your properties, but now make those same purchases with business credit cards for just one month, that would temporarily free up $ 2,000 in cash from your budget. normal operating.
Of course, you are responsible for paying off any business credit card balances you receive, but that would be over a period of time that would give you enough opportunity to make a profit on the $ 2000 used on business credit cards before the first payment is made. due. Are you seeing how having business credit benefits you? Let’s go a little further.
Business credit cards are a fairly quick way to get resources for short-term needs, and at the same time, they can increase the purchasing power of your business. But it has to be used inexpensively and not spent with all your money just because it is available.
Other benefits include:
• Business owners with a limited credit history or credit file can apply without meeting the strict requirements of traditional banks.
• It is much easier to shop online and make cash withdrawals from these lines of credit.
• Accounting is simplified with the use of monthly statements and year-end statements to track expenses and pay taxes.
• Unlike installment loans, business credit cards offer discounts and rewards that can be used for air travel and the like.
• Commercial credit generates credit. By paying on time and paying more than the minimum monthly fee, you incentivize lenders to increase credit limits and lower interest rates.
As with all credit, commercial credit has certain requirements for approval:
• 720 credit score
• No bankruptcies
• No foreclosures
• No late payments in the last 24 months
• Possession of a credit card with a limit of $ 5k.
Building a strong and solid business credit report allows you to stop relying on your personal credit to support your business efforts. It also helps you qualify for future financing your business may need from traditional lenders.