Small Business Credit Cards

Small Business Credit Cards and How they Work

As a business owner you will want to keep your personal and business finances separately. A small business credit card is then a must. These work like a personal credit card but as the expenses will be separate from your personal ones, doing taxes become easier.

Banks, credit unions and credit card companies are able to provide small business credit cards and there are various options that you can look at.

In South Africa merchants are able to get their credit card machines and information from SureSwipe.

Why have Small Business Credits Cards

 

A small business credit card is dedicated to that of all the business purchases and expenses. They are important in both small businesses and also for home businesses as keeping track of transactions become easier.

When it comes to tax time having a separate credit card for your small business makes the period easier. The tax return forms have separate sections for personal and business. You will know exactly what is what as the transactions are kept separately.

All the business transactions should be kept on the business credit card and all personal transactions should be kept on your personal card. The receipts from each of these should also be kept separately. You will then just need to look at your business credit card statement at tax time and fill in the required fields.

You are able to get small business credit cards that will go a step further and categorise your expenses to make it even easier.

Finding a Small Business Credit Card

If you already have a bank account then you can talk to your bank about business credit cards and what they offer. This can often be the best idea in finding small business credit cards as you already have a relationship with the bank. You are able to get approval quickly this way as long as you have kept your account in good standing.

A great source of information is online as you can compare the terms of various offerings before you choose.

In order to apply for a small business credit card you will be asked for:

1. Name

2. Business Name

3. Contact Details – number, address etc.

4. Verification of Identity and

5. Annual Income

What to Look For

Credit card terms for small businesses will vary across providers. It is then important to research these so that you are making the right choice for what you need.

·         Sole Proprietor – you may make fewer purchases and just need a basic card that has low rates and no annual fees.

·         Business Owner – you will likely make more purchases so a card that offers reward points might be suitable, especially if travel is frequent as you can earn travel rewards which can be redeemed against accommodation and flights. These cards may have higher rates and annual fees. Ensure you know what you are paying before selecting the card and also compare reward cards.

·         Employees – you may need your employees to have their own business credit cards which will influence your decision. You can find cards that have spending limits and will track the transactions of your employees.

Small business credit cards are ideal but remember you still need to aim to pay these off in full each month to avoid interests. You can easily rack up debt if you are not disciplined s ensure you pay each month.