5 Confusing Things About Business Credit Cards
Before he got a credit card for his cellphone repair and parts wholesale business iPhillyfixit, founder Corey Bates used PayPal’s small business funding services. Unsatisfied with the delays in getting money, he got a credit card from Citizens Bank.
Getting a credit card for his business was a good move, Bates says, and a smart way to keep on top of his finances as his business grew from an eBay-based side gig he started in 2010 as a high school student to a venture that allowed him to quit his restaurant job, join forces with a new partner and open up a shop in Drexel Hill, Pennsylvania.
In addition to letting him redeem reward points for cash back, helping him keep track of his businesses expenses and soothing tax headaches, the card gives him financing flexibility.
“If you do need to buy something and don’t have the money at the moment, you can buy it and pay it off within the month,” Bates says.
Indeed, business credit cards have much to offer small business owners. But the world of business credit can be confusing territory to navigate. Even those who are savvy about personal credit can be thrown for a loop by these five business credit surprises.