LOS ANGELES, March 22, 2011 /PRNewswire/ — Small businesses face cash flow problems that can stifle growth. In June 2010, SBA stated, “The availability of credit is one of the most fundamental issues facing a small business.” While bank loans and venture capital are still tight in 2011, business credit cards can help entrepreneurs invest in their company and reach the next level of revenue.
With a small business, “you are always looking for ways to jumpstart your growth or simply get your business off the ground,” said Charles Tran, Research Director of the credit card comparison website CreditDonkey.com.
He advises entrepreneurs to consider the smart ways in which business credit cards can help businesses grow:
- Define Expenditures: Business credit cards allow you to categorize and sort your expenditures. With these tools, businesses can define areas to streamline and cut expenses.
- Maintain Tax Records: Keep all expenditures on a business credit card to make preparing for taxes easier. Business credit cards provide an end-of-year statement to help identify business expense write-offs.
- Give Employees Responsibility: Employees can use credit cards for business-related expenses, allowing owners to monitor and track spending. Accountability linked with each employee credit card reduces employee fraud, waste and abuse.
- Provide Safety Net: If vital equipment fails, or if you must purchase additional merchandise at the last minute, a business credit card allows you to pay for these expenses and keep your business running. With a 20-25 day grace period, you can recoup the expenses through earned revenues – and not pay any interest.
- Smooth Cash Flow: Volatile cash flow, seasonal trends and slow months are problems all businesses face. Cover expenses with a business credit card until your customers pay.
- Discounts and Rewards: Many business credit cards offer discounts on office supplies, shipping, and deals on everyday business purchases, from cell phone plans to car rentals. Combined with reward benefits, you will have cash-back, airline miles or hotel points to reinvest into your growing business.
- Greater Flexibility: Most business cards have higher spending limits than personal cards. If you have large expenses at any time throughout the year, or spikes in your inventory needs, a business credit card can handle this increase in costs without putting you over your credit limit.
Use your business credit card wisely to jumpstart growth. “As long as you pay off your balance each month, a business credit card can add thousands back to your bottom line – giving you more capital to reinvest into your company’s growth,” Charles Tran said.
Small business owners can visit http://www.creditdonkey.com/business for free comparisons of business credit cards that can help your company reach the next level of growth. You can search, compare and apply on the website, finding the best business credit card for your needs.
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