Management of Business Credit Lines
Once you get a credit card for your business, the best thing to do is avoid co-mingling. Credit cards for business should be used with great responsibility. Pay bills timely and don’t take on debt unless those debts will increase revenues.
Cash flow should be managed, and good records should be kept using cash advances only when no other option is left. Save records of the monthly transactions of credit cards for maintaining files of monthly reports.
Don’t Mix Personal and Business Expenses
The most challenging thing for a business credit card holder to manage is to mix personal and business expenses. Avoid this co-mingling. Any mistake can happen if you mix both expenses. The business payments may be missed. Business purchases may exceed the credit card limit.
This mismanagement may ruin your credit scores and decrease your business card rating. When you use business credit cards responsibly, your rating is improved, and you can get more credit. IRS and creditors expect that you use the credit card of the business line to pay for business expenses only if you are serious about your business.
Keep Yourself Updated by Checking Your Email Regularly
The CARD Act in 2009 is basically for consumers and has less impact on the business credit cardholders. The creditors often change the policies and update the credit card holders via email. So, keep checking your emails to update yourself on these changes.
Creditor’s new policies may compel you to switch to your business credit cards because it will affect your business adversely. There may be fees that you want to avoid paying. “There are many nuances to small business credit cards,” says Molly Brogan, a National Small Business Association spokeswoman, the oldest and largest non-partisan citizen advocacy group representing over 150,000 small businesses. “You need first to understand what protections your card does offer as a small business, and then you’ll understand more clearly what it doesn’t.”
Regular Monthly Reports
Monthly financial statements are critical to know the exact financial status of your business. Monthly financial statements tell the amount of capital and credit you are left with. You remain updated by reviewing financial statements often and knowing whether you can pay debts.
Avail Rewards Offered by Creditors
You can get maximum benefits from your business credit card by availing of the rewards the creditors offer. Creditors often suggest rewards according to the specifications of your business and interests. Keep yourself updated by researching and comparing cards to see what is best for you and your company. Select the card which gives you maximum rewards and benefits.
Similarly, a credit card protection card protects you against credit card fraud. 
Cash Flow Management
The best way to increase profit margin is to manage cash flow. Make a business plan and formulate the budget. Analyze the month’s cash flow and ask your creditors to recharge your credit cards on the dates when there is a considerable cash flow expected.
This responsible use of credit cards prevents you from many adverse situations. You can make payrolls timely. You don’t need to offer discounts to vendors for quick payments. Good cash flow management increases your credit card ratings.
Avoid Taking Debts
Debt is the tiger that can kill your business. Debt decreases your rating, and you may be unable to obtain credit when needed. Avoid debt and avail it as the last option left. Taking debt just for making new purchases for a well-established business is not a good idea.
Debt can be taken only to increase revenues. For example, suppose your company hires new staff, shifts to another profitable location, or purchases upgraded equipment. In that case, these are situations when you may need to use a business credit card.
Conclusion
Responsible use of business credit cards is a part of business management and makes you credible in front of creditors, customers, and suppliers.
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