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 Save More Money Each Month
Saving money isn't a lot of fun. It's much more exciting to act like you can't run out of money, which is super fun, until you run out of money.
Budgeting has a terrible reputation. In these stressful times, when we are all stuck at home and our routines have been disrupted for months. This makes it easy to justify additional spending on luxuries. Fortunately, you don't have to give up the things that make you happiest to save money. There's no need to dive into a budget that sucks the joy out of your life. Saving money is a simple matter of deciding what you love more; this or that. In this article, we’ll talk about how to save more money each month in easy and painless ways.
Can you give up a subscription box that is full of stuff you don't use to free up your bathroom counters and reduce your high-interest debt? Can you spend a few minutes looking at your bank account and cancel recurring bills for services you don't use or even like? If so, you can save more money each month.
Budgeting Could Help You Save Money
Many people have no idea where their money went at the end of the month. A budget helps you become more aware of your spending habits, which could reduce unconscious spending.
Technology makes budgeting simple. There are several free apps that allow you to keep track of your finances in real-time, making it easy to check in with your bank account balances before swiping your debit card for an impulse purchase.
Technology also makes spending money easy. You can click on a Facebook or Instagram ad and make impulse purchases from your phone. Having a budget may not prevent you from making these purchases, but it could help you take a moment to think about whether you really need (or even want) the item before you hit the "purchase now" button.
Make Savings Automatic
Saving money is tough, especially if you don't have excess income or are struggling to pay your bills. Creating a savings plan that you don't have to think about helps you put money away. You may have heard "pay yourself first". Setting up an automatic deposit from your paycheck is one way to make saving painless.
If you have an irregular income, an app like Catch can automatically help you set aside money for taxes, your emergency fund, and even a retirement account.
Paying Off Debt
When you decide to pay off your debts, you also eliminate interest payments. Make sure you pay more than the minimum amount due each month on your revolving credit accounts to help reduce the amount of interest you pay each month. If your payments are higher than you can easily manage, consider paying off all your credit cards and store cards with a lower-interest consolidation loan.
Eliminate Unnecessary Spending
Everyone's definition of "necessary" spending is different. One person may consider a subscription for unlimited car washes necessary, while someone else thinks it's frivolous. Don't give up your precious morning latte right away though.
Take a quick look through your bank account transactions for the past month. Make a list of subscriptions you don't love. Cancel those right now and add the total amount you would have spent to your automatic credit card or store card payment.
Look for duplicate spending, as well. Do you pay for HBO through Amazon Prime and your ROKU account? Cancel one right away. If you signed up for free trials and forgot to cancel before you get charged, take a few minutes to terminate those accounts, as well. Every time you cancel a service or subscription, add that money to a high-interest debt payment. If you don't have any high-interest debts, add the money you would have spent to your automatic savings plan. Use an app like Truebill to help identify and cancel subscriptions.
Reduce Impulsive Spending
If it's easy to spend money while scrolling through social media, so try disconnecting your Paypal or bank account from your phone. When you come across something that you really want, you won't mind getting up off the couch to fetch your debit or credit card.
You can reduce the number of impulse purchases you make by creating a bit of friction between a compelling advertisement and your ability to purchase the item or add the subscription box to you list of monthly bills.
Time to Spend Less
Ready to start saving more money each month? Check out a few free budgeting apps like
PocketGuard, You Need A Budget (YNAB), or Mvelopes. Get rid of recurring bills for subscriptions you don't love and move closer to achieving your goal of saving more money each month.