Paying for Business Expenses Applying for a business credit card is something a small business should seriously consider for itself. Business credit cards can provide a range of benefits to a business. They allow a company to build up credit for better borrowing conditions down the road. They’re also quite easy to apply for. In this article, we’ll go over how to apply for a business credit card and other important points to note. What Is a Business Credit Card? A business credit card is a credit card that is intended for business expenses. These cards are not meant for any individual’s personal use, but they are available to businesses of all sizes. What Is a Business Credit Card Used For? Business credit cards are meant for business expenses, and as such, they come with several perks that you wouldn’t get with a normal credit card. Business credit cards typically have far higher credit limits than normal cards, but they are also harder to qualify for. [youmaylike] As a business phenomenon, business credit cards vary their offers greatly, and certain cards are meant for certain businesses. They are also highly customizable when it comes to individual payment terms. Businesses don't always have consistent incomes like individuals do, and business credit cards handle this problem. These cards are used to gain access to a long line of credit, to control employee spending on business expenses and more. One of their other common uses is to make accounting easier, as putting all business expenses on one separate account makes reporting to the Internal Revenue Service easier. In the end, there are many uses for a business credit card. Why Would I Need a Business Credit Card? You might not need one, but if you run a business, you’ll be leaving money on the table by not at least looking into them. Business credit cards can solve many of the problems business owners face. If you need employees to make purchases for the business, a business credit card is the safest option. These cards can be given to authorized users, a status you can easily give to any of your employees. From here, these cards make it easy to monitor employee spending and spot any discrepancies. You can attach customized user privileges to each card to limit spending and place limits on where the card can be used. As mentioned, if you feel like your credit is too limited, business credit cards are a sure way around low credit. According to the American Bankers Association, the average monthly payment on a business credit card is twice as high as the average payment on a normal one. If you’ve found yourself annoyed with the Internal Revenue Service over the complicated reporting processes for business owners, you’re not alone. This is where a business credit card can solve another problem. Simply handing over your business credit card statements to your accountant will make them love you. It will also provide them with the information they need to predict future spending. Another great use for a business credit card is lifting your liability for debts. Liability for credit card debt is determined by the liability offered by the card. If you’re using a personal credit card for business expenses, you are liable for all debts. On the other hand, if you use a business credit card with commercial liability, your business is liable for any debts, which changes the game. Keep in mind that some cards offer joint liability, which leaves both you and your business liable for any debts. Make sure you know what you’re getting into before signing any paperwork. Lastly, just as personal credit cards offer rewards programs, so do business cards. The main difference here is that business credit card rewards are tailored to your business needs. How to Apply for a Business Credit Card Before you apply for a business credit card, you should make sure you’re eligible. For the most part, you only require the following to be able to apply for one: A legal name for your business. A business structure to apply with, such as a Limited Liability Corporation. An explanation of the nature of your business. You’ll typically be given a list of industry types to choose from. A tax ID number issued by the Internal Revenue Service Your roll in the business you’re representing Various business/financial information including: Annual revenue. Number of employees. Length of time in business. Estimated monthly expenses. If you have this information ready, you can apply for a business credit card. At this point, it would be wise to shop around and find the best option for your business. Your decision on the business credit card you choose will have larger ramifications than your choice of a personal credit card. Applying for a business credit card is much the same as applying for a personal one. There are a few differences, but the main thing to remember is that business credit cards are taken more seriously than normal ones, so you’ll have to face a higher bar of entry. This doesn’t mean getting a business credit card is hard, but it does mean you need to arrive more well-prepared than you normally would. To make things easier, you can prepare for certain obstacles in advance. You may need to sign a personal guarantee that you will pay off any debts. Also keep in mind that if you’re the one applying for a business credit card, and your business doesn’t already have one, they will conduct a personal credit check. It may be best to try to optimize your personal credit if you plan on applying for a business credit card in the future. Some Options at a Glance Here are some of the most popular options for small business credit cards: Chase Inc Business Preferred This is a great option for a few reasons. With the Business Preferred card from Chase Inc, you get 80,000 ultimate reward points when you spend $5,000 with the card in the first three months. The card also provides generic, but highly useful benefits for business owners. Business Platinum Card from American Express The Business Platinum is ideal for businesses that spend a lot on flights and travel. This card offers numerous rewards on flight and hotel expenses and makes sure you get something serious back if you use it for these expenses. Chase Inc Business Unlimited The Chase Inc Business Unlimited offers unlimited 1.5% cash back. While we’ve said enough already, they also offer several other perks that are overshadowed by their first one.
Take Control of Your Finances
Managing your finances can be quite hard at times. Life is full of expenses and financial surprises. It’s not always so simple to make sure your money is being put to use optimally. This is especially true if you have work-related expenses or often need to travel for work, both of which are very common in the modern economy. Fortunately, there is now an app for everything. This is true of budget apps as well, and there are many different budget apps available.
Many of these budget apps are also meant for people in specific situations. These people include business owners, career professionals and various kinds of entrepreneurs. If you’re looking to get your finances under control, then budget apps are the way to go. This article will help you find the best budget app for you.
For Personal Use
When it comes to personal use, some apps stand out for their generic and simple applications. These apps will provide you with intuitive tools you can put to use to get your personal finances in order.
You Need A Budget (YNAB)
YNAB is the best budgeting app on the market when it comes to properly tackling debt. When it comes to budgeting, good financial advisors will advise you to make your money work for you. YNAB takes this idea to heart — the app’s greatest strength is that it applies this idea to itself in a way the user can see and appreciate.
With YNAB, each dollar you have is a worker with a job that needs to get done. Each dollar has a specific task, starting with debt payments, but including everything from bills to gas. This is always easier said than done, which is why the app gives you a goal to reach and provides positive reinforcement that will encourage you to carry on until the goal has been reached. The app comes with a free trial, but you’ll have to pay a monthly fee if you want to keep it.
Wally
If you’re looking to track your expenses, Wally is the best budget app for you. While Wally won’t be as effective at helping you pay off debts or come up with a larger financial plan, it’s a great choice for controlling expenses.
Wally does what any great budget app does for you: it balances your income and your expenses. In a time when finances are growing more complicated, Wally keeps things simple and helps you learn about where all your money is going. If you’re barely keeping any of your paychecks and aren’t completely sure as to why, Wally will provide you with as clear an answer as you’ll be able to find. The app is free to use, and it’ll help you see exactly where your money is going.
Mint
Mint is a free budget app that boasts a wide array of applications and excellent reviews across the board. The Mint app syncs to your bank account and tracks all incoming and outgoing transactions.
Mint can be used to create a personal budget, track your bills and even track and report your credit score. The app can even provide alerts to help make sure you never miss a bill again. In the end, Mint’s strongest point is the fact that it can work with everything important to your financial life. This includes your bank account, credit card accounts and even your retirement savings accounts.
The First Winner Is…
Mint. This is undoubtedly the best choice when it comes to personal finance. Have you considered hiring a personal financial advisor? Well, Mint is the next best thing, as it will handle almost everything for you, and it will even scold you for spending over your budget. Did we mention that it’s free to use?
For Business Use
When it comes to business, many of the best personal budget apps won’t cut it anymore. Business owners and entrepreneurs of all forms are playing a completely different game when it comes to their money. Fortunately, there are also some great apps for managing your business finances.
For Freelancers: Tycoon
Tycoon is an excellent app for freelancers of all kinds. Tycoon was created by Jess Perez, the supermodel. Perez had made note of the fact that like most freelancers, models are often paid far later than they were expecting. Models often also have difficulty managing the many tasks they have at any given moment. Tycoon was Perez’s response to this problem.
Tycoon is tailored to the needs of self-employed individuals, and as such, it tracks all of the things they need to know. This includes payments that are set to come in, payments that have come in and payments that are now past due. Tycoon knows what freelancers and various self-employed individuals are kept up at night thinking about, and provides a well-packaged solution.
For Small Business Owners: Toshl Finance
Toshl Finance is a great budget app for small business owners looking to handle their expenses. The app can monitor expenses, filter budgets by various metrics and even export files including PDFs and Microsoft Office documents. The app also supports most of the world’s currencies and offers cloud syncing.
Money Matters Made Easy
Budget apps may not be necessary for everyone, but if you can use some extra help, they are worth a shot. Any of the above apps can be found on the App Store or Google Play, and are easy to get started with.
While these apps are great for the purposes we have laid out, there are other apps with more niche applications as well. Regardless, budget apps are a great psychological tool for convincing your brain to take control of your finances.