| The first thrill about starting a new
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| | privilege of having the card, chances are
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| enterprise is seeing the name of your
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| | you dont need it. There are various other
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| creation on a business card. You want to
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| | features that you do want: overdraft
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| hand them out to everyone you see
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| | protection, 24-hour customer service, and
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| friends, family, the kid who bags your
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| | detailed account reports for your
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| groceries. Soon after youve registered
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| | business. In the long run, these services
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| your trade name, the credit card offers
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| | are far more important business benefits
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| start cluttering your mailbox. Its
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| | than frequent flyer miles or discounts on
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| flattering at first. You imagine going
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| | rental cars that are often accompanied by
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| out to dinner, grabbing the check, and
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| | numerous restrictions of their own.
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| saying, its okay, its on the company. So
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| | * Find a card and stick with it. With all
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| you fill out one or two pre-approved
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| | the offers of lower interest rates and
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| applications and, like your business
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| | appealing incentives, you might be
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| card, cant wait to use this little symbol
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| | tempted to switch your account from one
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| of acknowledgement. A corporate card
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| | issuer to another. Unless you are
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| tells people youve arrived. Youre a
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| | dissatisfied with your credit card
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| legitimate business.
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| | company, stay put. Card hopping shows up
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| But it can also spell trouble.
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| | on your credit profile and will likely be
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| The purpose of a business credit card is
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| | unimpressive to a prospective lender. Use
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| to have the convenience of charging
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| | your valuable time to manage your
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| legitimate business expenses. You avoid
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| | business instead of pitting one credit
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| using a personal credit card and
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| | card company against another.
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| submitting receipts for reimbursement.
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| | * Do not mix business with pleasure. A
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| You have the ability of making online and
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| | business credit card is intended for
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| telephone purchases to expedite shipment.
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| | business purchases only. In the event of
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| The revolving account helps you plan your
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| | an IRS audit and they do occur via random
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| cash flow. The statements provide a
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| | selection questionable expenses will
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| detailed accounting record.
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| | raise suspicion.
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| Used wisely, a business credit card
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| | * You dont need a deck of cards. You
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| provides these important benefits and is
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| | shouldnt require more than one or two
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| essential to building your corporate
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| | major credit cards for your business. The
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| credit profile. Demonstrating reasonable
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| | more credit cards you accumulate, the
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| usage and maintaining a good payment
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| | higher your debt potential. You charge a
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| history not only allows you to gain more
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| | hundred dollars at the office supply
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| credit, but also helps you negotiate
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| | store, then charge computer equipment
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| better interest rates on loans, lines of
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| | with another account, and maybe pay for
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| credit, and other revolving accounts. In
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| | gas, meals, and a nice little antique
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| fact, using a credit card properly is
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| | table for your conference room on your
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| better than paying cash because lenders
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| | corporate bank card. Theres still room on
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| want to see a credit profile with
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| | each card, so youre okay. But when the
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| positive activity. One small business
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| | monthly bills come, the totals come as a
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| owner had been vigilant about paying cash
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| | surprise. You can only make a minimum
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| for all his purchases to avoid having
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| | payment so the finance charges will start
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| monthly bills. He had had some personal
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| | to kick in. By keeping track of the
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| credit issues in the past and was
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| | expenses as you make them you wont heap
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| determined to avoid a recurrence. He felt
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| | up a debt that puts a stranglehold on
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| great about keeping his costs under
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| | your accounts payables. Whenever you take
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| control. When the owner applied for a
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| | that card out of your wallet, ask
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| business loan at the local bank, he was
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| | yourself if the purchase is necessary and
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| advised that the black marks on his
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| | valid for the company.
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| profile were minor. The biggest problem
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| | * A credit card is not a loan. The
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| was that he had no recent credit history.
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| | account should not be viewed as a source
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| So, he got a credit card, budgeted a
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| | of funding when cash flow is tight. The
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| monthly allowance for the payment, and
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| | interest rates and transaction fees are
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| made small purchases to establish reports
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| | too high! Avoid taking advantage of the
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| on his credit profile.
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| | cash advance option. If you are resorting
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| A business credit account is clearly
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| | to borrowing from your credit card,
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| valuable for a lot of functions. What it
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| | chances are youre not going to be able to
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| isnt is a license to spend without regard
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| | pay the bill when it comes due.
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| to the consequences. Just because youre
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| | * Limit the number of users. A company
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| not writing a check doesnt mean you
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| | credit card is as much a demonstration of
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| havent spent corporate cash. By following
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| | trust as it is a convenience for the
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| some basic guidelines, you can manage
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| | user. The bookkeeping for multiple cards
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| your corporate credit card account so you
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| | can be a nightmare, however. Before
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| reap the rewards instead of paying the
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| | applying for a card, make sure you can
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| price.
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| | get itemized reports for each card so
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| * Get credit from your own bank. Once you
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| | your frustrated bookkeeper doesnt have to
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| establish a business banking relationship
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| | chase down people to identify charges. To
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| with a local financial institution,
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| | avoid excesses, specify to the employee
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| continue to grow that relationship by
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| | how much and what type of charges will be
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| applying for your business credit card at
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| | acceptable. Review the monthly statements
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| the same place. The more business you do
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| | to verify that the cards are being use
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| with this bank, the more they get to know
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| | appropriately.
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| you. The comfort level increases the
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| | A business credit card is an essential
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| likelihood that they will consider your
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| | tool to manage your finances and get the
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| request for funding when the time arises.
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| | items you need on a timely basis. In
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| Show loyalty to them and it will be
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| | order to take full advantage of the
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| repaid in kind.
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| | benefits, choose your credit card company
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| * Read the fine print. Many credit card
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| | wisely, making sure you understand the
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| companies shout out low introductory
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| | services and the limitations. Be clear
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| rates. The key word here is introductory.
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| | about how the card will be used. Credit
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| After the honeymoon period is over, the
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| | cards follow a basic law of physics: for
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| rate can shoot up above the interest
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| | every action (a purchase) there is an
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| youre paying on your current card. There
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| | equal and opposite reaction (a bill). By
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| might be hidden fees that can rack up the
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| | getting proactive about the company
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| bottom line on your monthly statement.
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| | credit card, you can keep your finances
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| Look for an annual fee, the first sign
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| | in balance, boost your credit profile,
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| that this card is going to cost you
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| | and enjoy a terrific convenience.
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| money. If you have to pay for the
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