Coming up with a business idea is not an easy task, but what is even more difficult than this is implementing the idea and bringing it into reality.
While everything requires hard work, be it your job or academics, building or establishing your own business beats everything in terms of complexity.
But, if you start off right, things can come into a flow as your business moves ahead.
There are many things that go into establishing a successful foundation of business; these include a proper personal evaluation of your skills, evaluation of industry, observation of your target audience, planning, and a proper funding plan.
When it comes to funding the business, there are mostly three to five options people immediately go for. These include using your personal savings, going to your friends and family for investment, other nonrelatives investors, or VC funding.
But, another great option that you, as a business owner, can go for is business credit cards. These are credit cards that are issued by credit card companies, especially for business use. You cannot use it for your personal expenses, however, everything included in your business can be bought through it.
What are the benefits of a business credit card?
If you are wondering about the importance of these business cards, then let us tell you that there are many. The first benefit that business owners like to reap from business credit cards is the availability of plentiful cash flow so that your business keeps functioning properly even when the financial situation looks bad.
Typically, solopreneur or small business owners find it difficult to manage their business expenses as their personal expenses keep meddling and they fail to keep a proper track of their finances. With a separate statement, you can easily keep a record of your business-related record and know how much tax you would have to file.
Another benefit that you can get out of business credit cards is the constant availability of rewards. Since many businesses require business owners to travel back and forth, business credit cards can be a fruitful investment here. Many such credit cards offer cash backs and free airline tickets.
Since businesses often require you to make huge transactions, therefore personal credit cards are not a good option as they offer small limits as compared to the business credit cards. Business credit cards, on the other hand, offer such huge limits that you can easily go by and even cover out of pocket expenses.
Business credit cards also come in handy when you have to clear outstanding debts or loans. According to a survey, almost 70% of the business owners, who run small-scale businesses, are under the pile of huge debt. With business credit cards, you can clear your name off of the debt list and have your business credit rating up to the mark.
A business owner can also keep a record of how much employees are spending on inventory, supplies, or other business-related purchases. As there are many instances when certain employees spend company money, a business card gives you complete access to the detailed records of all the expenses made on account of the company.
If there are recurrent shippings involved in your business, you can reap business credit card’s benefits here as well with their myriad of discounts on such activities.
If you are looking for good business credit cards, check nav.com and find out a credit card that best suits you.
What are the requirements for getting a business card?
Many people, while applying for business credit cards, go with a mindset that the entire process is extremely difficult and requires certain intimidating factors to meet. But, the truth is, it is not that difficult to get these credit cards.
You sure have to meet the requirement to get it, but it is not impossible. With a good knowledge of these requirements, you can easily issue it.
The first thing you have to remove from your mind is that you need to have a full flourishing business to be able to apply for business credit cards. It is certainly not the case, and you can apply for it even if you run a freelance business such as writing, web designing, or any other side hustle.
However, your business must produce some sort of profit or your intentions must be to establish a profit-making business.
Your business should also have a legal name that is registered with the state. But, in the case of a sole proprietorship, your legal name would suffice. This information must be provided while applying for a business credit card.
The application process also requires you to provide your business’s contact information such as phone number and mailing address. But if you are working as a freelancer and from home, then you can provide your contact information.
You will also have to make sure that your business lies within an appropriate industry because, during the application process, you are also required to name the industry of your business.
You will have to establish the legal structure of your business which means you will have to tell if you have built a sole proprietorship, a corporation, or a partnership.
In the case of a freelancing hustle, you can simply select sole proprietorship but if you have a corporation, you will also have to provide the details about beneficiaries. And when you give information about beneficial owners, you establish who is a direct owner or who is an indirect owner.
Since card issuers want to be assured that the card will be used responsibly, they ask for information about the annual revenue and estimated monthly expenditure of your business.
Other small requirements that must be met are providing the time duration of your setup, the number of employees involved in your business, and federal tax ID. If you are someone who is working alone as a solopreneur or freelancer, you can mention one employee and give your social insecurity number in place of federal tax ID.