Management of business credit lines
Once you get a credit card for your business, the best thing to do is avoid co-mingling. You should use credit cards for business with great responsibility. Pay bills timely and do not take on debt unless those debts will increase revenues. It would help if you manage your cash flow, and good records should be kept by using cash advance only when there is no other option left. Save records of the monthly transactions of credit cards to maintain monthly report files.
Do not mix personal and business expenses
The most challenging thing to manage by a business credit card holder is to mix personal and business expenses. Avoid this co-mingling. You may miss the business payments. This mismanagement may ruin your credit scores and decrease your business card rating. When you use business credit cards responsibly, your rating is improved, and you can get more credit. IRS and creditors expect that you use the credit card of the business line to pay for business expenses only if you are serious about your business.
Stay updated by checking email regularly
The CARD Act in 2009 is basically for consumers and has less impact on the business credit cardholders. The creditors often change the policies and update the credit card holders via emails. So, keep checking your emails to update yourself on these changes.
Creditors’ new policies may compel you to switch to your business credit cards because it will affect your business adversely. There may be fees that you do not want to pay. “There are many nuances to small business credit cards,” says Molly Brogan, a spokeswoman for the National Small Business Association, the oldest and largest non-partisan citizen advocacy group representing over 150,000 small businesses. “You need first to understand what protections your card does offer as a small business, and then you’ll understand more clearly what it doesn’t.”
Regular monthly reports
Monthly financial statements are critical to knowing the exact financial status of your business. Monthly financial statements tell the amount of capital and credit you have. You remain updated by reviewing financial statements often and knowing whether you can pay debts or not.
Avail rewards offered by creditors
You can get maximum benefits from your business credit card by availing of the rewards offered by the creditors. Creditors often suggest tips according to the specifications of your business and interests. Keep yourself updated by researching different cards and making comparisons to see what is best for you and your company. Select the card which gives you maximum rewards and benefits.
Similarly, a credit card protection card protects you against credit card fraud.
Cash flow management
The best way to increase profit margin is to manage cash flow.
Make a business plan and formulate the budget. Analyze the month’s cash flow and ask your creditors to recharge your credit cards on the dates when there is a considerable cash flow expected.
This responsible use of credit cards prevents you from many adverse situations. You can make payrolls timely. You do not need to offer discounts to vendors for quick payments. Good cash flow management increases your credit card ratings.
Avoid going into debt
Debt is the tiger that can kill your business. Debt decreases your rating, and you may not be able to obtain credit when you need it. Avoid debt and avail it as the last option left. Taking debt just for making new purchases for a well-established business is not a good idea.
You can take debt only to increase revenues. For example, suppose your company hires new staff, shifts to another suitable location, or purchases upgraded equipment. In that case, these are situations when you may need to use a business credit card.
Conclusion
Responsible use of business credit cards is a part of business management and makes you credible in front of creditors, customers, and suppliers.

