The Small Business Administration’s 2009 business credit survey revealed that 59 percent of small businesses choose to make payments with credit cards, yet 79 percent of entrepreneurs say the terms of their credit cards got worse over the past year. A report from MSNBC.com suggests that choosing the right card might help small companies solve cash flow issues.To start, it’s important to remember that choosing plastic gives businesses flexibility. All credit cards afford entrepreneurs the advantage of separating personal and business expenses. Also, credit cards offer the most protections for small business owners in the event that a transaction goes wrong.
But the right credit card can even better the benefits of plastic for entrepreneurs. Many cards offer entrepreneurs rewards programs that eliminate annual fees, according to the source.
Some rewards programs give businesses cash back, others offer frequent flier miles, and many provide product discounts. Entrepreneur magazine says it’s important to do homework on what different card issuers offer and choose the card with benefits that a particular business could most use.
Professional at incorporation services can also tell entrepreneurs that maintaining good credit is essential to receiving loans that will take some of the pressure off of plastic. Entrepreneurs can learn more about how to improve their credit scores through online incorporation services.