Amex business credit cards can be a great benefit if you are a small business owner. However, they can also be a liability if you do not know what you are doing. Amex has rules and guidelines you must follow in order to stay in compliance. If you are a small business owner, you need to be careful how you use the cards. You also have to keep up with the ever changing business world.
There are many perks associated with having business credit cards. You will be approved for the cards quickly. Once you have been approved you will be able to make purchases online and at any location that accepts Visa or MasterCard. You will be able to establish an impressive business credit rating. This means that you can get additional discounts and rebates. Plus, your business will enjoy a steady line of credit when you make your monthly payments on time.
The only bad part about this arrangement is that the rate that you are approved with may not remain the same. The rate may go up a year or two later. That is why it is a good idea to shop around and find out the rates that different lenders are offering. In most cases, you should be able to find a competitive rate from a reliable lender.
When you go to obtain the cards to make sure you understand all of the terms and conditions associated with them. Many people have problems with Amex because they have interpreted the fine print. When you have questions, be very clear and polite in your request for clarification. Amex usually does not have a lot of trouble providing help once they understand what you are asking. In fact, they pride themselves on making their customer's experience easy.
It is imperative that you understand how to use your credit wisely. Credit cards can be a huge asset to your business. However, they can also be very dangerous if used incorrectly. That is why it is so important to be very careful in the use of your credit. Following the tips above will help you do just that.
Also, be sure to maintain good records of income and expenses for tax purposes. This could come in handy if you ever need to claim any of this money back from your business credit card issuer. Your tax adviser can assist you in putting together a complete financial report that will include all of your business expenses as well as your income. This will help you better understand how to plan for the future.
Finally, make sure that you do not get too much of the credit available to you. It is understandable that you might have more than one line of credit open at the same time. However, do not get so caught up in the number of cards that you apply . . . . . . for that you end up spending more than you can afford to repay. That is the surest way to ruin your business. If you must have a second card, be sure that you use it for something that directly affects your business.
When it comes to using Amex business credit cards, there are many things that you can do to ensure that your business runs as smoothly as possible. One of the best ways is to make sure that you never miss a payment. If you do run into this issue, talk with your personal adviser about setting up a payment plan so that you won't have to worry about any potential late fees. There are also many customer perks that you can take advantage of, including low interest rates on balance transfers and introductory rates on new purchases.