BusinessTechnology

Small Business Credit Cards – How to Protect Yourself

Small business credit cards offer many benefits. They allow businesses to turn daily expenses into cash back, can help manage employee expenses, and can even earn you free access to airport lounges. But beware of small business credit cards’ risks. Incorrect use can lead to financial overstretch and late fees. So, how can you protect yourself? Here are some tips. 1. Understand how business credit cards work. When used wisely, small business credit cards can be an invaluable tool.

First, know what types of business credit cards are available. Most small business credit cards require you to specify which industry you are in. If you’re in the transportation, delivery, or restaurant business, for instance, you’ll need a business credit card. A small business credit card will likely require a personal guarantee, but a corporate credit card doesn’t require one. So, before applying for a small business card, research the different options and compare them to each other.

Next, understand who will be responsible for repaying the debt. Most card issuers check personal credit before issuing a business card, but it is important to understand that you’ll be personally responsible if you don’t pay them. While this isn’t the case with a corporate card, it can be a problem when the business goes out of business. However, you should not worry about it too much. A small business credit card will help you to build your business credit and qualify for loans and lines of credits.

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