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Posts Tagged ‘personal credit cards’

Now that you have your business and are economically active agent, surely you have to do different transactions and payments related to your business. These payments, how do you do? Do you use your checkbook personal or business credit accounts? Do you know the benefits that your company is subject to credit?

If the payments you are making your company with your personal checkbook, you’re probably missing out good opportunities for funding that may help buy supplies, pay your payroll and even the renewal of equipment within your company.

According to information published by the Universidad Panamericana, 4 out of 10 micro and small businesses use personal credit card of its owner or owner to finance its operations. In other words, we are confusing business finances with personal finance. This is a serious error since, in general, personal credit cards tend to charge higher interest rates.According to Victor Calderon, co-director of ArCcanto (firm specializing in investment banking services for SMEs), there are cases where employers have 15 or 20 credit cards, which together account for a debt of 3 or 4 million pesos. These entrepreneurs do not have a credit line for your business.

Banks have launched a series of loan products designed to meet the short-term needs of small businesses. So there are already adequate credit lines for SMEs, available through credit card

This new product offering is divided into two categories: credit cards aimed at micro businesses, with loans ranging between 20,000 and 180,000 pesos, and those directed to small and medium-sized enterprises with credit lines ranging from 180,000 pesos, 3.5 and 10 million pesos, the bank said.

These credits were designed to support working capital needs and purchase of fixed assets (furniture, transport equipment and machinery), improve the assortment and inventory, expand or renovate facilities and to cover payments to employees and suppliers. Read the rest of this entry »

If, is the response that comes almost immediately, which can be applied to most businesses, especially small ones. Before we get into the ways that credit card companies are useful, try to understand what they are.

As a simple way, a credit card business is one whose owner is a corporation, not an individual. To understand this better, you can draw an analogy between business credit cards and bank comparing their benefits. Other than that, business credit cards work in much the same way as personal credit cards, with some differences, such as flexibility of the credit limit, low interest rates and any other additional benefits.
Business Credit Cards

Just for that reason, seem a good option. However, they also have other benefits. The biggest advantage has to do with the records of business expenses. For most small businesses, accounting can be very cumbersome. With this particular product, this matter is handled very easily, just make sure all your expenses for the business card and make their personal expenses in your business card. Thus, the corporate card bill will have all the expenses of the company, which will save the job of collecting receipts and walk separating what is personal data of what is an expense of the company. The key is to use the business card for all the possible costs of the company. Some providers aware of this present the card billing in a way that fits for business accounting. Most often grouped expenditure so as to facilitate accounting. Some systems even bother to show invoices in a format that can be compatible with computer accounting systems, what you do not have the need to change your account information manually. In the event that the bill is presented in a format that is incompatible with that of your accounting system, you can hire a technician to do a small program that converts the information to the format required.