There are many business owners who want to accelerate the growth of their business, but it usually depends on having a little more money available. With this, they could advertise more, replace old equipment or buy new ones, increase their inventory to sell more items, etc.

Some business owners take matters into their own hands by funding these expenses from their personal stash. However, using personal credit cards for commercial business is a risky business as you assume full responsibility. If your company, God forbid, is ever sued or goes bankrupt, you risk losing your personal possessions and the good credit rating you took years to build.

Now, what if there was a way to free up some of that much-needed money you’re currently using to support your business by matching some of your spending to items your business already regularly purchases? Well, it exists and it is in the form of business credit cards.

In other words, if you spend $500 cash each week on real estate supplies to make repairs to your properties, but now make those same purchases using business credit cards for just one month, that would temporarily free up $2,000 cash from your regular business. budget.

Of course, you are responsible for paying off any business credit card balances you receive, but that would be over a period of time that would give you ample opportunity to make a profit on the $2,000 used on business credit cards before the due date of the first payment. . Are you seeing how having business credit is an advantage for you? Let’s go a little further.

Business credit cards are a fairly quick way to raise funds for short-term needs, and at the same time, they can increase your business’s purchasing power. But it has to be used economically and not spend it all on sprees just because it’s available.

Other advantages include:

• Business owners with a limited credit file or credit history can apply without meeting the strict requirements of traditional banks.

• It’s much easier to shop online and make cash withdrawals from these lines of credit.

• Accounting is simplified with the use of monthly and year-end statements to track expenses and pay taxes.

• Unlike installment loans, business credit cards offer discounts and rewards that can be used for air travel and the like.

• Commercial credit generates credit. By paying on time and paying more than the minimum monthly rate, you incentivize lenders to increase credit limits and lower interest rates.

As with all credit, business credit has certain requirements for approval:

• 720 credit score
• No bankruptcies
• No foreclosures
• No late payments in the last 24 months
• Possession of a credit card with a limit of $5k.

Building a good, solid business credit report allows you to stop relying on your personal credit to support your business efforts. It also helps you qualify for future financing your business may need from traditional lenders.

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