Ways to Use a Business Credit Card for Your Start-Up
posted on Wednesday, September 23, 2020 in Financial Tips
Launching a start-up requires having sufficient funds that will help you execute your goals. A business credit card can help you in this aspect—from purchasing new equipment to doing business with online vendors. They are also easier to qualify for compared to loans.
Just remember to use them responsibly and for business purposes only. Doing so helps you gain access to a plethora of benefits. If you’re new to using business credit cards, here are some ways that you can utilize them for your company:
Build Up Your Credit Score
If you’re thinking of applying for a loan soon, you should work on building a good credit score, and business credit cards can assist you in this aspect. But, keep in mind that they can only work to your advantage when used properly. With this, be sure to always pay your bills on time and use your card strategically. Doing so increases your ratings and gives you leverage when applying for funding.
Better Track Your Company’s Spending
A good business model involves having a strict budget. With a credit card, you’ll receive a monthly statement that shows all your business expenses. This helps you identify whether you’re staying within budget or if there are adjustments that need to be made in your team’s spending habits.
Collect Points and Earn Rewards
The benefits of a credit card can come in the form of redeemable points, which you can exchange for merchandise, gift cards, and even cash back opportunities. Choose the option that will serve as the most advantageous for your company. For instance, if your line of work involves out of the country visits, you can opt for travel rewards.
See Your Business Goals Come to Life
With the right mindset and proper planning, a credit card can help mobilize your goals for your company. At Community 1st Credit Union, we will be there every step of the way. We offer numerous benefits like higher credit limits, an easy-to-use cash management system, extended warranty on purchases, and so on. Call us today to learn how to apply for a business credit card.