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Small Business Credit Cards

Written by Kathleen Gagne
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There is a whole genre of credit cards designed for small businesses. This is because credit card companies have recognized that lending to small businesses can reap big dividends because small businesses can grow into larger ones and because small business owners understand the value of maintaining good credit.

How do you actually make money using small business credit cards? First of all, getting a small business card allows you to buy what you need when you need it. If you need raw materials to produce a product, or if you need to increase your advertising, you will have the buying power to make the move that will make your company grow.

Other Small Business Credit Card Advantages

In addition to having the flexibility a business credit card offers, you will also be able to track expenses very clearly. When you give a card to a salesman on the road, for example, you will know exactly what she is spending and will be able to tie the expenses directly to the cost of a specific customer. If you pay your card off each month or as quickly as possible, you have essentially received a loan at very low interest.

Make sure you understand the terms of use of your small business credit cards so that you will not incur the expense of high interest rates. Another advantage of small business credit cards is that they usually have a relatively high limit, sometimes as high as six figures. In addition to flexibility and buying power, this gives you the confidence you need to make good decisions when you're negotiating.


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