In the world of business, the question of how many business credit cards should I have is a common one. And it is not just about the question of cost and whether you can manage that type of debt. Many business owners are also concerned that their personal credit line is getting dangerously low. After all, the business world is always trying to keep the cash flow from dwindling even further. If you are going to be counting on credit cards for your business, you may as well start planning now.
The answer to the question “How many business credit cards should I have?” is not a simple one. However, the first thing to do is to sit down and figure out exactly how much you currently owe on your various business expenses. You should write down how much you owe per month, as well as what you owe in other categories such as rent, utilities, insurance, etc. Also make sure that you have a good idea of how much revenue you are bringing into the business each month.
Next, figure out how many credit cards you will need. You don't want to get so many that you will end up paying interest rates and other fees. Keep it simple and only get the bare essentials. One or two good cards to have available will be all you need to keep the business going. As your business grows, you may decide to add additional cards or look at other options such as merchant accounts, etc.
Figure out how long each individual card will last. If you are using them just for liability purposes, you do not need to keep track of how much you owe or how much you bring in. But if you expect to charge off some of the items you purchase for your business, you should have a record to refer to at all times. Each month you should tally up all of the business expenses on the cards and see how much you owe overall. This will help you determine how many business credit cards should I have. You will also be able to determine if the cost of the cards is worth the revenue you are generating.
Once you determine how many business credit cards to get, you need to look at those cards and determine how they fit into your business. Are they good for customer service, sales, or advertising? Do you travel a lot with your company-supplied vehicle?
You can purchase the cards online very easily and quickly. There are a large number of companies that sell business credit cards with almost any name, any logo and almost any amount of money you can dream up. You should get at least three different cards to use throughout the year. Of course, you may wish to switch your cards around and try to generate more sales by using one card in a particular location and another in another.
Many business credit card companies offer special deals if you maintain a certain balance each month. For example, if you pay off your balance in full every month, you will receive a percentage off your balance. If you pay off your card balance in less than a year, you may be eligible for cash back bonuses. Just be sure to read all of the terms and conditions of the company before signing your business credit card agreement.
When you are ready to . . . . . . open up an account with a particular business credit cards, you will want to make sure that the company is recognized by the Better Business Bureau. A good business credit card company should have no problems pointing you in the right direction if you are in trouble with their services. Also, make sure you always have enough credit to cover your business expenditures. You never know when you will need to expand your business. Just make sure you don't overextend yourself financially.