| For many small businesses, cash flow is all; suppliers | | | | flexibility than those without. Those without do tend to |
| have to be paid, items have to be bought and | | | | carry an annual fee, but offer more flexibility. The |
| sometimes you just can't wait for a customer to settle | | | | choice as to whether to opt for one or the other must |
| their invoice. At times like these, a business credit card | | | | be based on your company's expected turnover and |
| can be the most effective way to manage your cash | | | | how the card will be used, and by whom. |
| flow and run your business as usual. | | | | As well as being useful tools to avoid a potential |
| A business credit card allows you the capacity to pay | | | | cash-flow crisis, the business credit card also offers |
| the people whose services you use, without it | | | | other advantages; thanks to the fierce competition for |
| immediately leaving the company's cash account. This | | | | custom between the financial institutions, Cards now |
| is especially useful if you're waiting for customer | | | | come with a variety of incentives and perks that are |
| payments to clear, or the cash simply isn't there. Using | | | | aimed squarely at the owners of small businesses. |
| this facility, you can pay for items, supplies and | | | | There are discounts on services and products, |
| services using the credit available to you through your | | | | cashback deals and even rewards on accommodation |
| business credit card. | | | | or Airmiles. These facilities can all be useful to reduce |
| But how much credit can you access? This rather | | | | company expenditure in certain departments, |
| depends on your credit rating and the type of credit | | | | particularly if these are areas of recurring expense. For |
| you are applying for. When someone is setting up a | | | | example, companies whose staff use hotels a lot can |
| business and applying for a business credit card, the | | | | benefit from accommodation deals, whilst product |
| card provider needs a yardstick against which to | | | | discounts might be useful to another. |
| measure your capability to maintain credit. The only | | | | There is also the obvious advantage for good |
| reference point they will have at that time is your own | | | | bookkeeping practice; statements and online billing |
| personal credit rating. This is a formulated figure based | | | | means that the paperwork involved in card |
| on your spending and credit habits when compared to | | | | transactions is significantly reduced. In addition, it also |
| those of the rest of the population. A positive score will | | | | keeps the company spending separate from the |
| allow you to apply for many types of credit, including a | | | | business owner's spending which can be invaluable |
| business credit card. Conversely, a negative score can | | | | during the tax period. A business credit card also |
| impede and even prevent your application, so it is | | | | offers a certain amount of protection against the |
| worth researching your credit score and, if necessary, | | | | receipt of unsatisfactory goods and services, as well |
| taking steps to improve it before you apply for a card. | | | | as offering protection against credit card theft and |
| Credit limits come in two forms: a preset limit and one | | | | fraud. It is often worth contacting your potential card |
| without a preset. Preset limits are good for companies | | | | provider to discuss their policies in such matters and to |
| who are only likely to use the card intermittently, not | | | | discover the other fringe benefits that are often left |
| using up the monthly credit available. This way, money | | | | buried in the small print, as the focus tends to be on |
| is always available in the event that something | | | | the many money-saving perks that accompany these |
| unexpected suddenly needs to be paid for. Preset | | | | dynamic pieces of plastic. |
| cards generally carry an annual fee, but offer less | | | | |