Finance your Business with Credit Cards

Author: The Frank Team.

Starting a small business in Australia
is stressful enough - with an incredible
50% of first time business owners
failing in their first year, the ease of
funding a credit card provides can
release the tension. Since business
expenditures can be add-up to
significant tax deductions, it is
imperative to separate personal
expenses from work-related charges.
Aside from the tax savings, a business
credit card represents expanded options,
particularly with the right card.

Finding the Best Business Credit Card
As with any financial product, not all business credit cards are the same. An annual statement is a popular feature of most business credit cards. Tallying up business related products and services are made simple with the convenience of recorded statements. Nevertheless, a good business credit card should have other features besides a balance sheet. Here are other features, to look for in a small business credit card - an exceptional credit line, a low preferred business annual percentage rate (APR), extra business credit cards for employees, customizable business checks, custom cards with your business name, complimentary online account management. All of the features stated can be mission critical to starting and conducting business. Review the following benefits to finance a new company on a business credit card:

Depending on the credit card company, a record of all transactions may be available annually or by request only. Small business credit cards offering free online account management is an important feature. The ability to check transactions and manage online payments simplifies book-keeping. The same record can be used during tax-time to calculate profits and earnings.

The Importance of 0% APR
A low preferred business APR can ease the transition of being paid by new clients and covering unforeseen expenses. The financial stresses of starting a new small business can hinder productivity. Be it the cost of renting or buying new equipment, immediate expenditures can wreak costly distress on any business. A business credit card with a low APR can help offset the pangs of paying a balance over time versus right away. The best business credit cards offer a 0% introductory APR.

Credit and Account Management
To ensure that employees are conscientious about the company budget, additional business credit cards may control their spending. A business credit card with online management and additional credit cards enables a small business owner to track spending, maintain records and receipts.

For simple account management, small business owners can pay for products and services using a business credit card cheque. An exceptional credit line is useful for the fast growing small business that has to cover travel, new technology and other expenditures. A robust credit line can be the difference between staying in business and going out of business. The inability to access a line of credit without depending on a small business loan can bring a growing company to a screeching halt.

What stands out among the various business credit cards available from different financial providers are the extras. For instance, St.George Bank currently offers 'Business Owners' Transaction Packages' on their business credit cards, many of which have received an invaluable 5 Star CANNEX credit card award.

We recommend the American Express 'Business Accelerator' Credit Card - every business related purchase you make is tax deductable, along with the $160 annual fee. Click here to find out about the horde of other business benefits and bonuses available for the Business Accelerator.

Back to Menu