Business Credit Cards: What To Watch Out For

During these times when credit is becoming harder and harder to get, business credit cards have taken the place of small business loans for many companies.  While providing many benefits, business credit cards are just like their consumer counterparts - they can lead to trouble when used unwittingly.

These are the things you need to watch out for:

Late Fees. According to a research from American Express, late fees from the business credit card sector reach an average of $2.9 billion a year.  While your own charges may seem like a speck in the face of that, realize that it’s money left on the table - not a good idea at all.

Watch Out For Introductory Offers. Everyone loves zero percent introductory rates.  Problem is, they’re too good we end up forgetting them as we plan our business expenses.  If you’ve been counting on the zero interest to beef up your bottom line, make sure the sudden surge from 0% to 10%+ doesn’t hurt you.

Avoid Personal Spending On Business Accounts. As with many things in life, mixing business and personal spending is a recipe for disaster - one that you’d much rather not deal with.  Keep accounts separate, with no concessions.  Even at the most tempting instances, avoid it with all your might.

Set Your Own Ceiling. Just like consumer credit cards, you’ll have to watch for how much balance you run up on your business accounts.  Spend too much and you can be looking at a business disaster - one that leaves your source of income in really bad shape.