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5 signs you’re ready for a business credit or charge card

It’s not just about credit. Business cards have advantages that you might not have thought of.

Sponsored by the American Express Qantas Business Rewards Card. Get 160,000 bonus Qantas Points when you apply in March 2022 and spend $3,000 in the first 2 months. Plus, enjoy no annual card fee for the first year. New American Express cardholders only. The T&Cs apply.

Opening your first business credit card might seem like a big step, especially if you’ve never had a personal one before or if your business is just getting started.

But when used responsibly, business cards are nothing to worry about. In fact, they can actually solve common problems and provide useful benefits.

So how do you know if it’s right for you? Here are some common situations that might suggest your business is ready for its own credit or charge card.

1. You have regular expenses

If you have regular business expenses, chances are you could benefit from a business credit card, according to financial educator and chief financial officer Amanda Fisher.

“I think every business should have at least one business payment card for subscriptions, online purchases and travel expenses where you both need a card and also need to track,” said she told Finder.

“When the business is established and profitable, that’s potentially when a business credit card could be used.”

Having a dedicated business card allows business owners to clearly track which expenses are personal and which are business, and some allow for easy integration with accounting software such as MYOB or Quicken.

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2. You want to help offset those expenses

Inevitably, with regular expenses comes the desire to reduce them. But if you think your tax return is the only way to help offset expenses, you might be missing a tip.

Business cards can also be a great tool for doing this, especially ones that allow business owners to collect points from their daily expenses and then redeem those points for various items, services, or experiences.

The American Express Qantas Business Rewards Card is one of the business cards currently offering a competitive rewards program. Cardholders can earn 2 Qantas Points per dollar spent on Qantas products and services, and up to 1.5 Qantas Points on daily business spend.1 These points can then be redeemed for everything from flights, hotels and car rentals to tech gadgets, designer clothing and gift cards.

So, without spending more, you can find ways to reward employees, reduce operational costs, deal with important customers, or upgrade business items. Not bad.

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3. You want a less stressful tax return

Of course, tax time will always be a source of some stress for businesses, but a dedicated business card could lead to smoother and more efficient tax filing.

“If you have a business card, you can post transactions directly to your accounting system, whereas if you use a personal credit card, you have to sift through personal expenses to find business expenses,” Fisher said.

This can cause business owners to miss an expense and miss their opportunity to claim. However, with a dedicated business card, you can be sure that all expenses are related to the business.

Tax tips that could save your small business money

4. You are having cash flow problems

If you’ve ever missed an opportunity due to a lack of cash, a business credit or charge card could prevent it from happening again.

“Having a credit card or charge card can help boost your cash flow by giving you more money to gamble with, even if you don’t have that money in the bank,” said Gerry Incollingo, managing partner at the firm. business consulting firm LCI Partners.

For example, the American Express Qantas Business Rewards Card gives cardholders up to 51 days to pay for their purchases.2, as well as no preset spending limits. This means you can access up to $1.5 million in unsecured financing over a 12 month period.3

Combined, these features can give business owners more flexible spending ability and improved financial agility.

Of course, as with any financial product, responsible use is essential.

“Make sure you understand your cash flow and your projections, because you don’t want to get in trouble by spending too much money you don’t have,” Incollingo warned.

Gerry Incollingo

5. You want to improve your business credit rating

Just like your personal credit score, every business also has a credit score – develop a healthy one and you could see several business benefits.

First, if you ever need to apply for a business loan or refinance your current loan, a better business credit score could help you get a lower interest rate.

Not only that, but some companies perform their own credit checks on vendors and business customers. This helps them determine if the company will be a reliable partner or if they can be trusted with a line of credit.

Managing a business credit or charge card responsibly can help you maintain a good business credit rating, which could lead to lower costs or more favorable business partnerships.

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The offers presented in the table are reserved for new cardholders. The T&Cs apply. Offers end on 06.04.22.

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