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.
How to Find a Financial Advisor
Are you looking for a financial advisor? Knowing how to find a financial advisor is important, and you have come to the right place. In this article we will explain what a financial advisor is, why it is important to have one, what the benefits are and the steps to finding a financial advisor.
What is a Financial Advisor?
A financial advisor helps you better manage your personal finances. Financial advisor is a general term. It’s often used to describe a host of financial professionals, from financial planners to investment managers. In more recent times, the term financial advisor has also been used to describe robo-advisors.
Perks of Having a Financial Advisor
Unfortunately, most of us aren’t good money managers and it is not our fault. When it comes to financial literacy, most of us have received little to no education from school. We’re mostly on our own when it comes to our personal finances. That means we often must learn the hard way by making mistakes. These mistakes can be costly. You can help avoid them by hiring a financial advisor.
It's important to have a financial adviser because they are a trained second set of eyes. A financial advisor can review your current financial standing and recommend areas that can be improved. A good financial advisor will do a close review of your assets, liabilities and expenses and make specific suggestions for you to implement.
A big part of financial advice is goal setting. Any good financial advisor should take some time to sit down with you and ask you about your goals. This includes both short-term and long-term goals. The financial advisor can then help you take the necessary steps to reach those goals.
This usually involves planning how much you comfortably need to retire on, as well as what your retirement will look like. It also involves looking after yourself in the near future. This involves making sure you have enough money set aside for a financial emergency, planning for your taxes for the next year and beyond and addressing the debts that you should focus on paying off.
We’re not going to ignore the elephant in the room. Financial advisors also help you invest your money by recommending certain investments. You can have as much or as little oversight as you need. The fees typically go up based on how much oversight you want and need. You usually get a break on the fees the bigger your portfolio is.
Most people think that financial advisors only provide investment advice. While that is certainly a big part of what they do, good financial advisors provide so much more.
The Steps to Finding a Financial Advisor
Are you ready to find a financial advisor? Here are the steps you can take.
Step 1: Make a List of Potential Financial Advisors
While you could just Google financial advisors, a far better way is to ask for recommendations from family and friends. If a family member or friend has had a good experience with a financial advisor, they should have no problem referring you to them. It’s better if they are a current client of the advisor to ensure the service is still excellent, but even if they are a past client, it doesn’t hurt to get in touch with them.
When reviewing the financial advisor’s website, take a look at the services offered to make sure they are good fit. Also, see who their website is geared towards. Is it geared towards younger people or older people?
Step 2: Interview Potential Financial Advisors
Once you have narrowed it down to two or three potential financial advisors, you will want to interview them to make sure they are a good fit. Here are some good questions to ask:
- How are you paid? This is an important one. Find out if they are fee only, or if they are paid based on the size of your investment portfolio.
- What are your credentials? You’ll want to know what the financial advisor’s credentials are. For example, do they just do trading for you, or do they have credentials in financial planning? Usually, the more credentials, the better, depending on what you are looking for.
- What is your minimum portfolio size? A lot of financial advisors may have minimum portfolio sizes. These are the ones that charge you a percentage of your investments. You’ll want to make sure you meet their minimum portfolio size. Otherwise, you won’t be able to work together, unless they are willing to make an exception for you.
Step 3: Make Your Final Decision
Once you have narrowed down the list and interviewed everyone, you will want to make your final decision. Making your financial decision isn’t jut about how they answered the questions; it is also about who the best personal fit is. If you have a good feeling about someone, you might choose to work with them.
Just make sure you get everything in writing because at the end of the day this is a business relationship. Happy investing!