When it comes to starting a new business or just improving your financial situation, one of the most important things that you can do is get a general business credit line. You can then make larger purchases in a personal capacity without worrying about the impact it will have on your business. There are limits to this credit limit, of course, and you need to make sure that you know them before you start applying. Here's a closer look at how it works.
A general business credit line of 75 cents per quarter is a great place to start for many small businesses. That kind of access to credit is something that many small business owners may never have had before, and it can help you get your business off the ground and moving forward. Of course, there are limits to this credit limit, which means that you need to know them before you apply.
First, you must remember that the general business credit is for personal use. Don't use it to pay for anything for your business. If you need to buy equipment, materials, furniture, supplies, or office space, you can do so with your general business credit card. You may be able to charge certain amounts of money each quarter, but those charges should be limited to no more than one percent of your company's income. These limits will be imposed by the company, so make sure you read what they tell you about using these accounts.
Second, be aware that the company won't allow you to use it to take out loans for your business. You can't just write checks from your card like you would with a personal credit card. Nor can you use your general business credit card to pay for business expenses, rent, supplies, or advertising. Those kinds of purchases are only allowable for the company, and you can't deduct them from your income.
Third, keep in mind that your general business credit limit won't cover everything. That means that you'll be expected to pay back those purchase within the year. It also means that you can't add to those purchases once you've paid them off, either.
Keep in mind that general business credit cards are great for those who want to do their own bookkeeping and for those who have a home-based business. However, if you're involved with any type of contracting business or have a business where you provide services to clients, you're better off using your personal credit card. General business credit cards usually won't help you with that kind of client transactions. They can, however, be very helpful if you provide accounting services or if you provide any type of human resources management services. If you're spending a lot of time working with clients on the phone, you'll find that using a general business . . . . . . credit card to pay for those transactions can really save you a lot of time!
You'll also find that general business credit cards have very low fees. They tend to be very easy to get and use. Also, they tend to have very few annual fees and most of them don't even have a monthly service fee. This makes them ideal for business owners who are used to paying a monthly service fee for years and who already pay a service fee for their personal credit accounts. If you don't like to pay fees, this is a perfect choice for you.
Keep in mind that there are plenty of general business credit cards out there. Before you apply for one, make sure you take a look at all the rates and features that are available. If you're planning to apply for a business credit card, it's important to shop around first to find the best rate and features that match what you need. Once you've found the best general business credit card for your needs, you should be all set.