California Business - Spring 2014 - San Diego - 18

bUsIness
InsIDeR

bUsiness Credit Cards
Tools for streamlining your business
the more knowledgeable your
business banker, the more likely
it is that you'll end up with a card
that makes it easier to run
your business.
can make sure employees use the credit cards you issue to
them in an appropriate way.
In addition, when you use a credit card instead of cash
or checks, you gain additional protection against fraud
and mistakes. When you call your credit card company to
dispute a charge, you're generally not required to pay that
charge while the dispute is under investigation.

hen you use credit cards in your business,
you have access to an efficient and versatile
way to improve your finances and streamline your operations.
for example, when you use a business credit card, you
can more easily separate business expenses from personal
expenses. this makes keeping expense records more efficient and accurate, and saves time when preparing your
taxes. What's more, many credit card issuers provide detailed end-of-year reports, with all of your expenses listed
and sorted by category.
another benefit that comes with most business credit
cards is rewards programs, with which you can earn cash
back, get savings on business-related purchases and airline
miles, and more. you don't receive these rewards when
you use cash or checks.
More control over spending
Providing your employees with credit cards to use for
expenses helps eliminate paperwork and cumbersome
reimbursement processes. When employees pay with a
credit card instead of their own funds, there's no need for
reimbursements.
note that you should be cautious about issuing cards to
employees, because multiple users on the same credit card
account can invite misuse. by setting appropriate limits
for each employee and closely monitoring spending, you

18 * California Business

a cash management tool
While using credit cards in your business carries many
benefits, to your banker, a credit card balance is like any
other debt you incur.
you can run a credit card balance to conserve cash
to use for other business purposes, but note that interest rates can be much higher than with typical loans. If
you miss a payment, you may even be charged a penalty
interest rate, damage your credit rating and be penalized
in other ways for exceeding your credit limit and missing
payment deadlines.
but as long as you act prudently, a credit card offers a
way to manage your cash flow and improve your finances.
Choosing a credit card
there are plenty of credit card options to choose from,
each with its own unique set of features and benefits. It
may be useful to meet with a business banker to evaluate
which card would be best for your business. be sure to review the grace period for each card, the rewards programs
that are available and reporting features that may be
available to help you control spending and improve your
recordkeeping.
many business owners use credit cards to help them
run their businesses more efficiently. the more knowledgeable your business banker, the more likely it is that
you'll end up with a card that makes it easier to run your
business, eliminates tedious tasks, helps you manage your
cash flow and streamlines your operations. *

California Business - Spring 2014 - San Diego

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