Monday, February 8, 2010

BisBuzz: Tip of the week

Small business owners:
My tip to you, is "when you can - pay by credit card!"

Charge it! It may not seem like an obvious choice, but credit cards offer many benefits for small businesses

1) If you do not get your goods/products/services you ordered from a company
Maybe they went bankrupt THIS RECENTLY HAPPENED TO ME!, or they just failed to ship you the goods or your products just arrived damaged. If the company will not fix your problem you can file a chargeback and in most cases you will win.

2) You get an extra 30 days on paying your credit card bill

3) You may get points for air miles or travel. Why not get a free trip somewhere when you spend money?!

4) You will have an extremely accurate record of your expenses

5) Build business credit.
"A small business credit card provides a newly established business the opportunity to build business credit. This will be useful in the future as your business grows and you need capital in the form of credit lines or loans". Although you may not need a line of credit or a loan, you may need it one day in the future and building your credit can help you in the future when you grow your business.

However, make sure you pay your credit card bill on time, as credit card fees can be extremely costly!



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