Business Credit Cards

Introduction to Business Credit Cards
Business credit cards are a great source of capital for corporate and small businesses . The credit cards come in handy, especially for start-up businesses that need easy and instant access to cash and credit. Many successful businesses started their ventures on a business credit card - in some cases, clever entrepenuers start a business solely on business and personal credit cards.

Sergey Brin and Larry Page, the entrepreneurs of Google used credit cards to buy second hand computers and open source software. Credit cards acted as the principle source of capital for Google. A company that went on to become one of the world's biggest corporations.
Applying for Business Credit Cards

Before applying for a business credit card, a customer must prepare a payment plan in advance to avoid any unnatural debt accumulation. This would include :
• Tracing the source of money for regular debt payment
• Realistic estimation of the affordable limit of debt
• Prior planning of paying more than the minimum monthly payment amount for gradual decrease of the outstanding debt .

Selecting a Business Credit Card

• An entrepreneur must do a comparative study of the different credit cards available.
• The entrepreneur must also check for the interest rates, late payment fees, and specifications of other fees and payment details.
Disadvantages Business Credit Cards

Credit card companies issue business credit cards with more lenient terms to entrepreneurs who are starting a business while keeping their full time jobs. However as soon as this person leaves the job in order to concentrate on the business , the card issuing company becomes suspicious about the repayment capability of the entrepreneur . Hence, it is most desirable for any entrepreneur , accessing a business credit card , to curtail their credit limits of the card by drawing cash advances on a regular basis from their card.

Shop for a business credit card with full understanding of the interest rates and fee structures; and manage credit scores in a proper manner with a good prepayment plan then the business is bound to succeed. A note of caution: be prepared for the unexpected and on top of the credit card debt with regular payments.