Cash credit cards are valuable tools to most small businesses.
Aside from the availability of the credit that they offer, businesses can also benefit from various rewards programs such as cash back rewards and travel miles.
These cards also offer relatively high limits and business lines.
Where can these cards be obtained? Some of the most common sources are Advanta, American Express, Discover, Capital One and Chase.
Why do businesses need to have multiple sources of cash credit available? Most small businesses fail within the first 3 years because they were underfunded from day one.
Having a good business idea will get you into the marketplace.
How long the business will be able to stay viable will, in large part, be dependent on its financial stability.
Here is where having access to multiple sources of financing comes into play.
One of the other advantages that these cards offer is the ability to track the businesses spending.
These accounts will categorize spending and enable the card holder to see clearly and simply where they are spending money.
Additionally, this tracking will also be valuable when it comes time to file business taxes.
Having the business expenses already organized when going to the accountant should save the business money by not having the accountant charge the business owner for the time needed to organize these expenses.
Finally, your personal credit and business credit need to be separated.
Unsecured lines of credit do not show up on personal credit reports.
By paying down personal debts, the borrower will make their personal credit scores higher.
In the long run, this will enable the borrower to obtain more unsecured lines of credit.