NEW BUSINESS CREDIT CARDS HELP BUSINESS GET OFF THE GROUND

New Business Credit Cards are very simple in principle to any other type of credit card, but there are intrinsic differences. Possibly the most important difference is the credit limit that will be offered. Typically, the lender will make a judgment on the stability of the company as well as the funding of the business.

This decision is made by the underwriting department of the lender and will help to determine the credit limit you will be given. As a general rule the credit limit you are afforded as a new business will be greater than that of an
individual but smaller than an established business would be offered.

It is typical for any new business to have all of their finances tied up in the development and creation of the business and so the short-term cash flow of these companies is not always such that they can make the purchases that they really want or need but a credit card offers them this. However, as well as giving new businesses the opportunity to buy the goods they need to survive a company credit card can be used for other purposes as well.

Employing executives and a sales force inevitably means that these members of staff will need to visit customers within their own premises. This can mean traveling hundreds of kilometers to get to a meeting. Providing employees with a company business card allows them to buy gasoline or plane tickets with the company’s money and not have to pay out of their own pocket.

Corporate credit cards can be used for entertaining customers and clients. Corporate entertainment is an excellent way of keeping existing customers happy and attracting new customers but again, without a company credit card or a corporate credit card it will fall on the shoulders of employees
to foot the bill and recoup the money through company expenses.

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