Corporate Credit

Not owning and using credit cards is not a valid option nowadays. They play a crucial part in people’s lives whether we are talking about an ordinary single user or a corporate entity. We no longer have to carry around large amounts of cash for making purchases and a credit card also provides an escape route when you have to pay for something in case of an emergency. These are the main benefits of credit cards that anyone can experience first hand but there is nobody enjoying more from the advantages than the business establishments.

The executives that are part of corporations or any other businesses feel the need for the business credit cards, especially when we are talking about individuals that are constantly in contact and interacting with other people like customers, clients, or business partners. It is nothing out of the ordinary for a company to issue business credit cards for the employees. This will serve as a very convenient way for both the corporation and the employee to manage and calculate the business related expenses.

This way, personal expenses will be sorted out from the business expenses in order to provide a clear view over the business operating expenses and also monitor these expenses for tax and accounting purposes.

More and more companies and corporations are attracted by both the benefits of issuing secure business credit cards for selected employees, and the enticing deals that credit cards operators and financial institutions are offering with the signing up of these corporate credit card services. Credit card companies can even throw in deals like waiving the fee for a limited period of time or even offering discount points to business related expenses like flight tickets or office supplies.

This type of business credit cards can be signed up on various credit card companies or financial institutions, each of them offering different reward points and benefits. Because of the large number of companies that are providing these services and the complexity of the offers with many levels of benefits, it can be a bit difficult to evaluate all the offers in order to find the one that best suits your company needs. Stacking up the offers on sheets of paper in front of you is not likely to succeed.

The alterative for this evaluation is to take advantage of one of the few websites that try to simplify the choosing process for a potential customer. They will list almost all the credit card companies available on the market at a certain point, each of the offers weighed in terms of advantages and benefits, and disadvantages. This way, the future client will no longer be put through a tedious process of sorting out flyers and paper sheets but easily browse through the data to make the most intelligent selection.

The business credit cards are more and more of a necessity, providing people with the opportunity of making business transactions with more ease than ever before.

As a manager or business owner, you always look for better ways to maximize business revenue and control expenses. When it comes to “common expenses” a business credit card is absolutely essential in managing and tracking of those expenses. Whether you are a corporate employee who travels to customer calls or a small business owner who handles all purchases yourself, you need a business credit card that works as hard as you do.

Banks are quick to offer their credit cards to you for your small business or corporation when you open a checking or savings account with them. While it is easy to sign up for, don’t assume it’s the best deal.

It is important that you shop smart for a business credit card. Compare features and benefits and even be a bit selfish when it comes to building the credit of your new company. Look for a credit card with low or no annual fee.

You are already paying interest on your purchases, so why would you pay a company more just to own their card? You can find a good business credit card deal with low or no annual fee if you check out the various credit cards offers available online.

Sit down for a moment and think of how your business credit card is used. If you regularly charge travel or office supply expenses, then you may want a low APR, that’s the Annual Percentage Rate – or the amount of interest you pay on the outstanding balance.

If your businesses consistently keep monthly balances, every percentage point saved is money back in your favor instead of paying more to the credit card company. Credit card companies want your business account, so they offer even more than good rates – they even offer bonuses!

A popular company credit card bonus is airline travel rewards. You earn points based on qualified purchases for airfare, hotels, rental cars, office equipment or computers. These points can be redeemed for gifts, restaurant meals or travel.

For a small business or corporation whose employees travel regularly, the points will add up fast may even pay for part of the next round of business travel. If your business travel is predominately on one airline, you can get a credit card sponsored by that airline. These cards tend to build up mileage rewards even faster.

Some credit cards offer cash back bonuses. As this is kind if bonus is more costly to the credit card company, so don’t be surprised to find that cash back credit cards also have an annual fee that ranges from $25 to $100.

Unless your business uses the card enough to get back more cash that what you pay out for the annual fee, then this card may not be the best deal for you. Small businesses will find what corporate managers already know – that a business credit card is an excellent way to keep track of business expenses – including travel and client entertainment.

Some credit cards provide detailed expense reporting, which delights the accounting department. Once the business qualifies for the business or corporate credit card, additional cards can be obtained for other employees.

As you can see banks are getting creative when it comes to offer their business credit cards to you, but a being clear on what you want and a little shopping and comparing before making a decision can go a long way in finding the best one for your business.

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As you start a business, you’ll be paying out money left and right for various fees and supplies needed to get things going. If you’re expanding your business, you’ll most likely be in the same situation. One of the best ways to handle expenses for your business, whether they are start up costs or ongoing incidentals that occur, is to obtain a business credit card. With a business credit card, you’ll have an organized reporting of expenses in addition to a quick and easy way to pay for your purchases.

Choosing the best business credit card takes a little more research than finding one for your personal use, but the time spent educating yourself on credit limits, interest rates and repayment options will pay off in the long run.

Corporate Credit Card or Business Credit Card?

A corporate credit card has no interest rate, but it does require either a monthly or annual fee to keep the card. It’s a good idea to find a corporate charge card that offers a single bill for all the charge cards on the account, as this will save you time and expense of writing multiple checks to pay for the charges. Just be sure that the employees who have access to the cards are using them for business purposes only- and if there is any question about the honesty of your employees, you may want to get itemized listings for each card so you can track each person’s usage on a monthly basis.

A business credit card is not all that different from a personal credit card. Business credit cards generally have a credit limit, and minimum monthly payments to pay. When lenders are deciding whether or not to extend a business credit to a company, they will look at the business owner’s credit as well as anyone else’s credit who will have permission to use the account.

Evaluating Interest Rates

If you decide to go with a business credit card over a corporate card, you’ll want to pay close attention to the interest rates of any cards you are considering. While promotional rates that scream 0% APR sound wonderful, don’t forget to check into what that rate will change to once the promotional period has ended. A 0% interest for six months that later changes to 29% is not as good as a card that offers an always low interest rate of 8% or so. Your other possibility is to obtain a card with an introductory offer, and before the time period ends, transfer your balance to a new credit card with a 0% introductory offer. It all depends on whether or not you want to be bothered with the constant applying and transferring of funds.

If you’ve decided to use a corporate credit card, look for a card with a monthly or annual fee that is reasonable in comparison to the amount of spending you believe you will be doing with the card. Also find out what services the card includes, sometimes paying a higher annual fee is worth the money in return for having discounts at office supply stores or airlines.

Consider Rewards Programs

Many business credit cards (and corporate cards for that matter), offer rewards programs for using their card. Do you do alot of traveling for your business? It would make sense for you to look into credit cards that offer rewards in the form of airline miles, discounted airfare, travel accident insurance, or car rentals. Do you tend to purchase supplies from a specific vendor on a regular basis? There are rewards programs that earn you points or cash back for purchases made at specific locations, and this makes sense for businesses who make repeat purchases from that location. Why not be rewarded for spending you have to do anyway?

Pick a Card, NOT Any Card

Choosing a credit card for business use is not a decision to take lightly, as the card will be a major factor in the amount of money you spend for your purchases, the ease in which you can track your business expenses, and the potential for earning free items or cash back.

Building business credit is all about getting a great credit score for your business.
If a company has a good business credit history, then it certainly has a positive influence on their ability to borrow and negotiate favorable loan terms.

The process of building corporate business credit takes time as the task involves a lot of careful planning. One must begin this procedure well in advance. In order to obtain business credit, the organization needs to give assurance to the creditors that the risk is worth taking. Creditors usually confirm for certain signs in order to convince themselves that the business is a viable and a profitable one.

But before getting yourself indulged in building business credit scores for your organization, you need to understand certain things. Firstly, you need to have a credit identity first. You can build business credit by establishing your organization as a corporation or an LLC. Having your business setup in either way will allow you to get a loan in an easier way!

The second thing that a company must know is that with perfect “shelf corporations with credit” in place, one can find it easier to save up on precious years of struggle and strife.

The third thing that an organization must go for is to obtain corporate credit. It helps in making the business survive for years and even grow to large corporate status. It is also said that Corporate credit is the lifeline of any organization. So in a way it is a very good way for businesses to finance the infrastructure, development and growth of any enterprise.

But the fact is that you should consider having corporate credit in your back pocket as a life line that would help you in maintaining a nice future of your company. You should utilize it’s benefits only when you really need it to keep you going.

There are countless advantages to building corporate credit as far as your small organization is concerned:
These provide you with the perfect access to loans and lines of financing even at the worst possible phase of the economy. In case of any kind of economic downfall, you’re better positioned to weather the storm. It can act as a perfect source for “cushion” financing so that you can get through the difficult period of time with an ease.
So you are getting yourself geared up for expansion. There is a possibility that things might be heading for a rough patch right now… But by building corporate credit for your company, your enterprise will be poised ready to stay as strong as a “Wall.”
Building corporate credit can be one of the best things you can do in order to help your enterprise grow into a BIG one!
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This article has been written by one of the experts at build small business credit. Build small business credit helps in Building corporate credit for a business in order to help it become profitable and successful.

Business credit cards come in a variety of forms, which can seem a little overwhelming to someone that doesn’t know the difference between the different types of cards. When it comes to business credit cards, the largest percentage of the market is small business owners. In fact, small businesses are the driving force behind the American economy and create the most new jobs every year. Therefore, credit card companies have developed business credit cards with the small business in mind, but there are some differences between business credit cards for small businesses as compared to those for corporations.

Where You Find It

One major difference between corporate credit cards and small business credit cards is how you found out about it in the first place. For the most part, small business credit cards are those that you see advertised on the Internet and for which you might receive a pre-approval invitation. Corporate credit cards are not advertised in the mass media because they are set up differently, operate differently, and target a different group of people.

Customizing

When it comes to small business credit cards, you have to take what you can find. Of course, you can compare business credit cards to find the ones that suit you best, but you don’t really have much room for making changes to the card to meet your needs. When it comes to corporate credit cards, the business can request options to be custom-made to work with the company. The reason for this increased flexibility comes down to revenue. A corporation placing millions of dollars of transactions on the credit card can have more say in how the card is set up. This ability to customize is another reason why you generally don’t see corporate business credit cards being advertised within the mass media.

Of course, corporations generally have greater needs when it comes to their financial responsibilities than a small business owner. Options they might need to have included on the card are often meant to help the corporation keep track of expenditures and to review and approve them in order to reimburse employees for entertainment and travel. The ability to track all of these expenses so closely requires the use of specialized software that is designed to interface with platforms from human resources.

Payment Responsibility

Another major difference between corporate credit cards and small business credit cards is the matter of who is responsible for repaying the debt. As a small business owner with a sole proprietorship, you and the business are one and the same. This means you are personally responsible for repaying any debt that may have incurred. If you default on payments, it is your personal credit history that is hurt. A corporation, on the other hand, is separate from the owner. Therefore, the corporation is responsible for repaying the debt. As such, the corporation may default on the credit card loan and file for bankruptcy, but you do not personally file.

It’s in the Name

Since a small business owner is generally a sole proprietorship and you are personally responsible for the debt, another difference between corporate credit cards and small business credit cards is the name on the card. In the case of a small business credit card, your name is generally what is listed on the front of the card. A corporate credit card, on the other hand, will have the corporation name on the front. In addition to the corporation name, it will usually have your name as well in order to verify that you are an authorized user. This also helps the corporation track the expenses of each employee. But, the primary name is the corporation name since financial responsibility falls back on the company.

The major credit card companies designed business credit cards purposely to address the needs of these small and medium sized companies. Wherever you look – on the Internet, radio and broadcast media, newspapers and other print media – you will find the card issuers advertising these business credit cards, and that the adverts specifically target small to medium enterprises. The point: to inform their target market about the features and benefits of their specific business credit card offerings.

So, how did the business credit card companies design their small business credit cards? Although there are variations from one business credit card package to the next, the basic features generally cover cash discounts for purchases of business-related supplies, a wide array of opportunities for rewards, travel privileges, frequent flier miles, and very low annual percentage rates for balance transfers in their introductory periods. The small business credit card holder also receives periodic reports as rule, which summarizes purchases made on the business credit card account. These reports can normally be viewed online and can be downloaded into a QuickBooks file.

Like small business credit cards, large corporations have equivalent corporate business credit cards. These are markedly different because corporate business credit cards (or simply corporate credit cards), are specifically designed for the corporation itself and not for the individuals inside the corporation. Once a corporation decides to apply for a corporate credit card, the officers enter into negotiations with the credit card issuers to hammer out the specific features of the card and how the business credit card will integrate with the company’s finances and financial systems.

The corporate business credit cards are usually distributed to employees to use for those expenses they would normally incur on behalf of the company. Like small business credit cards, corporate credit cards also track the expenses incurred by each cardholder and individual reports are submitted to management. Because of the different, and often more complex, expenses incurred by large corporations, the system of reporting generally requires a specialized software application to resolve these financial complexities.

The single most significant difference between small business credit cards and corporate credit cards is the mode of payment. Generally, for small business credit cards, the credit card is the responsibility of the primary individual applicant who is also responsible for paying the balances or installments due. In the case of the corporate credit card, the credit card is issued in the name of the corporation. Primary responsibility for payment thus resides with the officers of the corporation.

The process of issuing a corporate business credit card is much more complicated than that of a small business credit card. For the small business owner who wishes to apply for a business credit card, it is quite simple actually; there are even websites where you can compare the different business credit cards and submit online applications once a choice is made. This is a luxury that a large corporate in need of a business credit card account, simply does not have.

Copyright (c) 2009 Pamela Williams

All new business owners must deal with the fact that they haven’t yet established a corporate credit. Without a business credit, your personal credit history would be a major factor when you apply for a loan or a credit card. Can you apply for a business credit card without a business credit history? The answer is yes! And this article focuses on how you can be prepared for your business credit card application.

Build a Strong Personal Credit

As a new business owner, lenders would use your personal credit history to determine your credit-worthiness and your potential as an entrepreneur. Naturally, an excellent credit history or high credit score would surely win the nod of credit card companies. On the contrary, a poor credit history or a low credit score would most likely raise doubts and lead to rejection.

Therefore, one way to prepare for setting the business is to check your personal credit. Obtain a copy of your report from the three major credit bureaus to see the real status of your credit. Are there any errors or misinformation in your report? If so, you can dispute these errors and request for a correction.

Do you suffer from a low credit score? Do you need to improve your credit history? If so, you may need to work on improving your credit for at least six months or more, depending on your rating. Thus, by checking on your credit report, you can take the necessary actions right away before launching your business or before applying for a business credit card.

Why a Good Personal Credit Is Important

Why is it important to build up your personal credit before applying for a credit card? If you search the market, you’ll see that the credit cards with the best deals often require good or excellent credit. The same principle applies to credit cards for small business- the ones with the lowest rates and better terms are only offered for business owners with good credit.

What about secured business credit cards? Secured business credit cards grant easy approval. In fact, these cards can be used to improve or rebuild bad credit. Nevertheless, a secured business credit card requires its holder to submit a security deposit to his account. The credit limit is often determined based on the amount of the security deposit. Hence, if you need a higher credit line, you’ll need to submit a larger deposit as well.

Needless to say, business credit cards that require excellent credit usually have lower interest rates, less fees and higher credit limit. Business credit cards with reward programs and special privileges are often offered exclusively for entrepreneurs with good credit.

Clearly, having an excellent personal credit would work to your advantage when you apply for a business credit card. Of course, before signing up or submitting your business credit card application, don’t forget to read and understand the complete Terms and Conditions. Finally, once approved, register your company with Dun & Bradstreet and start building your business credit right away.

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All businesses –both large and small – all rely on good credit standing for a favorable stand with prospective lenders. By having an excellent business credit score, a business owner can be confident that he can obtain the financial assistance he needs at any time without difficulty.

But building a credit history for your company is not achieved in an instant. Time and effort is also needed in order to build a solid business credit. In this article, let’s discuss the necessary steps to establish your own corporate credit.

Ensure your business entity. The legality of your business is crucial in establishing business credit. First, you need to define the legal entity of your business. It can either be a corporation or an LLC (Limited Liability Company) to qualify for a bank loan. If your business is a sole proprietorship, you may not qualify for a business loan and it would be easier to apply for a personal loan instead.

Proof of existence. In order to be considered as a legitimate company, you need to have a physical address, a business telephone number, and a complete contact information. A website and an e-mail would not be a sufficient proof of your company’s existence since anyone can easily create a presence online. Having a physical address is what’s most important.

Obtain all necessary business permits and licenses. Make sure that you’ve secured all licenses and permits that are required for all businesses in your local state.

Register for a business tax ID number. A business that has been in operations for at least 2 years should have a complete record of financial statements and have its own tax ID number. Make sure that your tax ID number, EIN (employer ID number), and licenses are all listed in the same exact legal company name.

Establish your business savings account. Having your own business bank account is a solid proof that your business is financially stable. A balance of at least $10,000 for the past three months is considered as favorable and stable.

Establish at least 5 trade references. Build up a good business-to-business relationship with your suppliers or business partners so you can use them as references for establishing your business credit.

Register your business with a business credit bureau. Before you can start building your company’s credit history, you need to register your company with a business credit bureau like Dun & Bradstreet or Experian. D & B is a leading business credit reporting agency in the US.

Get a business credit card. After registering your company with a credit bureau, applying for a business credit card is a great way to build up your business credit. As you use your small business credit card with your expenses, you are also building up a solid credit history. Of course, maintaining an excellent credit history depends on how well you handle your credit card account. If you make it a point to stay within your credit limit and if you’re always on time with your payments, you are building a positive reputation for your business.