Monthly Archives: November 2008

Advantages of a business credit card for business owners

If you own a business and do not have a business credit card, then you must have realized how important it is to have this card for the growth of your organization. Whether you run your business from the comfy environment of your home or own an office space with several workers, having a business credit card will take the operations of your company to the next level, literally as well as figuratively.

When you have a business credit card, it gives your business a kind of perceived legitimacy and you hold a business value in front of your customers and you get a peace of mind. People doing business with you feel that your company has some reputation in the market. If you are doing business from home, a business credit card will change your thoughts from “just having a hobby” to “owning a full fledged business.” Another advantage of business credit card is that you will be able to do business transaction on credit and maintain the business and personal expenses properly and separately. It will also allow your business to grow and expand in future.

In today’s world, business credit card has become so important to such an extent that if you don’t have at least one business credit card, it means that your company is new in the market and has very small operations. Employees working in a big organization will usually have credit cards. If you are an owner of a company like this, having a business credit card will be more like a necessity than a luxury. Business credit cards offer advantages that make the business operations very smooth.

Business credit card can simply the bookkeeping efforts. You can use your business credit card for major expenses like large supply orders, business subscription services and even routing office necessities. This will certainly help in keeping a track of all the expenses when you check the monthly statements of your business credit card. You can also issue a company credit card with a certain spending limit for your selected staff so that they don’t have to run to the owner for approval of the purchase. This allows greater work efficiency in the organization.

Business credit card can improve the cash flow of your business. You can make all purchases on the card and pay it at the end of the billing cycle. This will allow you to have enough petty cash and use it in those places where you cannot use the card. You can also utilize the interest free money during the card’s grace period. You need to make sure that you are paying the full amount within the due dates so that you don’t incur any interest charges and fees.

Business credit cards are not just for large organizations. It will improve your company’s overall financial picture. You just need to use these cards with wisdom and care so that you don’t incur huge business debts.

Many debt control options are available

When it is about controlling debt related problems, there are many options but only a few gets implemented since they are quite easier than others. One of the great options is switching from credit card to a debit card. This will prevent you from building any new additional debts because your spending habits will be limited to the balance available in your account.

One of the main reasons of being in overwhelming debts is impulsive buying. One should have a perfect control on his spending habits. Although it may sound difficult, but it’s important to limit your spending habits to necessary expenses only.

There are other options to control your overwhelming debts. For example, if you are a home owner, you can refinance your home or use the equity to get a home loan or a new line of credit. This will be a great monetary help to pay off the existing debts that are added with very high interests and fees. This new loan or line of credit on your home can be attained at very low interest rates. Be aware that your home will be at risk if you default in your loan repayments.

Credit cards are often the root cause of debts because many people find plastic to be a lot easier and convenient to make purchases than carrying cash. This is a dangerous situation because you have borrowed the money from the credit card company at higher interest rates for this kind of credit offered. The interest rates will keep on adding up if you are just paying the minimum amount each month.

If you are shopping for a credit card, look for the ones that are offered are lower interest rates. A good idea will be to transfer all the balances from your current cards to a new card at a lower interest rate. Make sure that you are able to pay back the full amount within the lower interest rate introductory offer.

Some people opt for debt consolidation loans to control the debt situation. By taking a debt consolidation loan, you will combine all your multiple bills under one monthly payment and pay lower interest rates on the debt consolidation loan. This is certainly a good option because instead of paying to different credit card companies at higher interest rates, you will consolidate everything under one monthly payment at lower interest rate, thus helping to eliminate debts quicker.

There are other meaningful ways to come out of debts. For example, if you have some unwanted or unnecessary assets, you may sell off those items in order to pay off the debts. There are many items that can create emergency funds. For example, unneeded jewelry, used car or furniture that can be sold for cash. Some also have leased out any extra property they may own. These options will definitely speed up the process and walk you towards a debt free life.