subject: The Many Functions Of A Business Credit Card [print this page] A business credit card can serve many purposes, and in todays fickle economy, is almost a necessity. If you do not have a credit card for your small business, there are several reasons why you may want to consider getting one soon. Forget what youve heard about avoiding business debt and overloading your finances. So long as you are responsible in your spending habits, a business credit card could actually improve the way you do business.
Emergency Expenses Despite your best efforts to save and plan for the future, from time to time, unexpected expenses may arise that your business cannot afford to pay for immediately. Instead of letting a vehicle go unrepaired or a major piece of equipment go unreplaced, keep your business functioning as normal by paying for the costs with a business credit card, which you can in turn pay off over a few weeks or months, rather than all at once.
Establishing Credit History If you plan to expand your business in the future or want to apply for a business line of credit at a local bank, you will need an established credit history. Business credit cards can help you build your credit rating, which could make it easier to secure funding for an expansion or remodel in the future.
Perks Programs So long as you do not carry a revolving balance from month to month, the perks programs that business credit cards offer can actually save you money, rather than cost you money. Credit card perks come in many forms, including travel rewards, fuel discounts and cash-back on purchases.
When you need funding for any part of your business, taking out a loan is one of the best options. You borrow a set amount of money now and pay it back with regular monthly payments as your investment works for you to help your business be more profitable. While many lenders require you to set out a detailed business plan for how youll use the money or put up personal or business property as security in case you dont repay the loan, unsecured business loans dont require either of these.
The concept of security for a loan is based on the idea that the lender wants some sort of assurance that the money will be repaid. This assurance is often in the form of a business plan that looks like it will succeed, a piece of property that the lender can seize if the loan isnt repaid, or a credit score that shows the business has repaid its debt in the past. The lender issues the loan on the basis of one or more of these types of security.
With unsecured business loans, you dont need to put down security or provide a plan for how youll use the money. Instead, the lender typically charges a higher interest rate to help cover its potential for loss. Because its a specialized loan product, most major lenders dont offer unsecured business loans. Instead, youll have to turn to alternative lenders, like UnsecuredBizLoan, to have the chance to apply for a loan.
Other than the process of getting the unsecured business loan, all the rest is just like any ordinary loan. You receive the money from the lender and can use it in whatever way you need for your business. Then you just have to make payments on your loan according to the schedule on your agreement until it is repaid in full. If your business has the money, you can even repay it early!
To apply for funding for your small business, use the form on the right to begin the application process.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card
