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 Get Cheap Car Insurance
Car insurance provides a car owner with protection from the financial results of an accident, theft, vandalism, medical costs, and liability. You may be required to purchase a minimum amount of auto insurance, depending on where you live and whether you have a loan or lien on your car. If you are a new driver or are not familiar with insurance, do not worry. In this article, we explain how to get cheap car insurance.
Laws vary from one state to the next. In states where car insurance is not mandatory, drivers living there must show proof that they can take financial responsibility for any accidents or damage.
If you have a car loan or lease a car, the lienholder may require certain types and amounts of coverage. You may have to show proof that you have full coverage insurance that includes liability, comprehensive, and collision coverage.
Types of Car Insurance
Liability-Only Coverage
This is the least expensive car insurance option and may work well if you do not have a loan or lease, your car is not worth much, or you just need to satisfy your state's laws. Keep in mind that if you are at fault in an accident that damages your vehicle, your liability insurance will not pay to fix your car.
Before you decide to get liability-only insurance, find out how much it would cost to add comprehensive and collision coverage to your vehicle's policy. If your driving record is good, it may be worth spending a bit of extra money to get a policy offering more coverage.
Full-Coverage Car Insurance
This includes collision coverage for your vehicle and property if you cause an accident that damages your car. It also includes comprehensive coverage, which pays to fix your car if it is vandalized, you hit an animal in the road, or your car is damaged in a storm. With collision and comprehensive coverage, you will pay your deductible before your insurance kicks in.
Your agent may also recommend that you add medical payments or personal injury protection, uninsured motorist coverage, and glass coverage to your policy. Each of these insurance types is optional. Be sure to get a cost breakdown before agreeing to additional insurance coverage.
Tips for Getting Car Insurance
If you need car insurance, there are a few things you should understand about the process of purchasing a policy.
You can get a quote online, but it does not represent your final price unless you work with a company that provides a 100% online experience. Car insurance is an important part of many peoples' financial lives, so ask yourself if you would be comfortable going through the entire claims process online or if you would want to talk to an insurance agent if you are involved in an accident. Many people prefer to have a conversation with someone who understands the local rules about insurance and can help choose a budget-friendly policy that includes a good amount of coverage.
If you have never had car insurance and need a policy, you will start by contacting an insurance company or insurance agent in your area. You can work with an independent insurance agent who can get you several quotes from different companies, or you can choose an agent that works for just one company. If you are not sure which insurance company to choose, an independent agent can help you research rates.
Car Insurance Costs
Many factors contribute to the amount of money you will pay for car insurance. When getting quotes, it can be tempting to choose the cheapest policy. However, it is crucial to get insurance from a company that has a reputation for paying claims. Some insurance companies with familiar names habitually refuse to pay or underpay claims, leaving their clients scrambling to pay their medical bills and fix their vehicles.
Get more than one quote and make sure that each quote includes the same amount and types of coverage, along with identical deductibles.
If the insurance coverage you need is too expensive, ask about raising your deductible to reduce premiums. Of course, you will have to have an amount equal to the deductible set aside in an emergency fund, so you can get your car fixed if you are at fault in an accident or if you accidentally damage someone else's property while driving.
How to Find the Right Cheap Car Insurance Policy
Before you sign up for insurance, ask how the company handles claims. Make sure you understand under what circumstances you may need to pay your deductible.
Your agent can help you understand how an insurance company comes up with their rates, how you could reduce your car insurance costs, and what type of policy you must purchase to stay in compliance with your state's laws and keep your lienholder happy.