Small business credit cards

4893848354_a9d58bb0ef_o_dIssued on the name of the business, these cards protect the credit of the business owner and make accounting and taxes preparations easier keeping all business expenditures separate from the owner’s private expenditures.

Business credit cards are important and the business owner should check with several financial institutions for the best rates and terms. These cards could also help identifying the areas you spend through the on line manager of the account and can help your business establish a credit history in the name of the business.

The following are a few benefits of a business credit card:
– Business spending reports
– Higher spending limits
– Perks and rewards programs for spending more during each month
– Multiple credit cards in case you wish to issue them to your employees
If the balance is paid in full every month, interest rate won’t apply and your business will increase its business identity.

C- Obtaining a loan from a private financial institution.

Private loans could be obtained directly from banks , credit unions or other community financial institutions.

These loans could be secured or unsecured. The secured loans as guaranteed by your home, or your car, are easier to obtain, but these types of loans put a heavy burden on a person starting a new business and fearing he or she is liable to loose his personal property if the business does not take off. Still sometimes, when time is of the essence and a small business owner needs money to keep the business alive, this type of loan is usually obtained faster.

An unsecured loan is not as easier to be awarded by a private institution unless the owner has an excellent credit score and a history of paying all bills on time for many years and has no history of bankruptcy. Unsecured loans carry most of the time higher interest rates, so you should consider all aspects when deciding on this type of a loan.

Large commercial banks are some of the lenders for small business loans, but their rates tend to be 4203873799_4f245de101_bhigher than small, local banks or Credit Unions who are interested in developing the local businesses and have money to lend from their savings depositors.

When choosing a loan an important factor is the annual percentage rate or APR, which takes into consideration the annual interest rate plus any fees to be paid for the offered loan, the smaller the percentage of the APR, the better the loan.

As well, a borrower should consider the duration of the loan versus the items to be purchased with the particular loan, for example, one should not select a term of 10 years to pay back a loan used to purchase items with a 5 years life expectancy.