Minggu, 07 April 2013

Credit cards are important for entrepreneurs?

With the rise of online shopping, where electronic payments have become the norm, has become extremely popular the use of credit cards. However, while the majority of individuals have taken up the use of these financial vehicles for their personal use, many entrepreneurs are still leery of the meaning of these plastic materials for the growth of their business. So, the question remains: are credit cards really important for entrepreneurs?

To answer this question, let’s take a look at some advantages and disadvantages of using these plastics business.


There is no denying that scroll cards convenience for consumers. With these, consumers don’t have to worry about not having enough money for their purchases. In fact, do not have to carry cash at all when making purchases with merchants. Can easily spend using the card if they need to buy household appliances, food, gas or airline tickets. It also doesn’t have to go through the hassles of carrying large cash as they can only use one card for all their operations. In addition, they can easily use cards online to pay bills, even goods and services.

The disadvantage of having this handy tool, however, is that people can overspend, so put yourself at risk of accumulating debts. When used responsibly, however, can really make a big difference.

Business capital

Funds for enterprises are hard to come by sometimes. With a card, you can easily extend your financing, since this can be used as a source of start-up capital. There are cards that are designed specifically for businesses. Very well may be used to conduct transactions or purchases for commercial purposes.

The disadvantage of using these financial vehicles as a source of capital for companies is that it can be more expensive than personal credit cards. In addition, they may also have higher rates of interest.


Entrepreneurs can benefit from using tabs through the rewards they offer. Most cards for businesses offer discounts, rebates, seductive without elements and the ability to save more and spend more.

Fraud protection

Business credit cards are often equipped with fraud protection. This added security is a huge advantage for any businessman. With fraud protection, you can be assured that business transactions, such as online purchases for the company and many other transactions involving the use of paper, are protected from prying eyes by suspicious individuals.

Motivation tool

Give your employees their own cards can be rewarding. This can serve as a motivational tactic for them to work harder. The good thing about this is that even if employees are given their own cards, still can control how much you can spend. You also have the power to restrict the use of their cards.

Credit cards can also be used to increase the credit score of a company, giving your business a chance to get approved for a business loan with a low interest rate in the future.

With all the advantages offered by these financial instruments to a businessman, it cannot be argued that the answer to the question of whether credit cards are important for entrepreneurs is a resounding “Yes!”

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