Small company Credit Cards – A Balanced View
As a small business owner you must surely be receiving plenty of promotional offers and applications intended for small business credit cards. When such offers are flowing, it’s only regular to be confused whether to opt for business loan cards or to opt for options like small business loans and other fixed credit lines. While it cannot be refused that business credit cards are of great help to new and old companies alike, they also come with their own share of responsibilities to be fulfilled. They have to be managed wisely. Here are some advantages and disadvantages of small business/trade loan credit cards that will help you make a decision.
A little About Small company Credit Cards
Small trade/business credit cards allow you to to gain access to funds in the simplest manner. It’s a revolving line of credit and also a fixed credit limit. Whether you want to take away cash or just make purchases directly via small business loan cards, the process is usually quick and simple. However , if you do not make the payment on time, you will attract high attention and even late fee.
Advantages of Business Credit Cards
Qualifying is Quite Simple
Have you been refused a loan because you don’t have an established credit history? Do not worry; you could be eligible for a small business loan cards with ease so long as you fulfill their minimum requirements which are quite flexible.
More Convenient at Times associated with Need
Credit or loan cards are known to be one of the simplest ways of accessing cash in times of need as you can associated with payment directly or even through on the web. You can also withdraw the cash and make the payment, no matter what your purpose is usually.
Helps Building Business Credit
If you know how to use a credit card with caution simply by paying the interest on time and not going above the spending limit allotted for you personally, then you can raise your business loan ratings with the help of credit cards.
Financial Cushion much more Difficulty
In case you are going through a rough patch in your business and are looking for some immediate cash, credit cards could be of great utility. Whereas business loans and other options will take time to materialize.
Disadvantages of Small Business Credit Cards
· Large Maintenance Option
Although the advantages of business or trade credits are many, you have to pay a price to enjoy them. You have to pay a high rate of interest for using credit slips or cards when compared to loans and other fixed line of credit. In the event you fail in making a payment or even delay it, you will have to incur late fee and penalty. Also if you are a defaulter, you will have liability problems and will be barred from borrowing money any further.
· Security Troubles
Your card information could be easily taken by your employees, vendors or even clients. Also you need to be very cautious about who you are authorizing to handle your small business credit cards
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