Written by Jeremy Cabral
Every business owner should be aware of how their business credit card works and how to use it properly. Most business credit cards generally work under similar principles as a personal credit card, although, as a business card owner, there are some key benefits.
Below are five tips to help you stay savvy over your card and your business:
1. Check for any added benefits: Check if this type of credit card would be suitable for your business spending habits. If you find that there are no added benefits on your card, it may be worth comparing business cards with some perks. For instance, business cards with frequent flyer points offer added benefits such as purchase protection or travel insurance. Although there may be some added benefits to these cards it is crucial that you are not just spending to simply earn reward points.
2. Clearer recordkeeping: You can save time and consolidate all your business expenditures in one place, making it easier to see all the transactions on the monthly statement.
3. Make it easy for tax time: When it comes to tax time it can be beneficial if you keep your personal spend separate to your business to track expenses. This saves time and money so the accountant doesn’t have to spend too long sorting out your paperwork.
4. Create a positive credit score: Using your business credit card wisely is a great opportunity to build a positive credit score. As your business expands, you can apply for credit much quicker.
5. Pay on time: Paying your business card on time makes a big difference. Not only does this keep your credit score inline, but you will avoid penalties such as disabling the interest free period. ANZ Business One Visa offers up to 55 interest free days, which could be valuable to avoid interest charges on purchases.
Remember, the main purpose of the card is to help you manage business expenses. Make sure that you are aware of all the fees and features of your business card or if you can find one that is more suitable to your spending habits.
About the Author
Jeremy Cabral is the publisher of Australia’s leading credit card comparison website CreditCardFinder.com.au. A free comparison service that helps Australian consumers and business owners make informed choices about their finances.