Financially Speaking

Does your business credit card offer you the best benefits?

With half of small home businesses using credit cards to help meet their capital needs, the use of a business credit card is very important.

How does a business credit card affect a business owner’s personal credit? That depends on if the business is a proprietorship or an individual in a partnership verses a corporation.
With a proprietorship or a partnership, a home business credit card is still a personal responsibility. It is best then, to pay off the balance monthly to help maintain a good credit rating.

A corporation is considered a separate entity from the individual so only the assets of the corporation are subject to liability. For this reason, on the application, full legal structure and accounting records are required when applying for a business credit card. Any new corporation would have to wait a period before the application is approved or may be given a secured business credit card to start with.

A credit card for a small company or a home based business, can now have many other perks such as travel accident insurance, employee liability insurance, collision coverage on rental cars, emergency cash, lost-luggage service and detailed reporting.

More details can be found on the
credit card application

Make sure any expenses are strictly related to business, as the statements will be used to as an accurate expense record at tax time. If your credit card has rewards you can use these for personal use. What I like and what you will like is the free advertising this home based business credit card can give you.