Business Owners' Views on Business Credit Cards

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by: kevinocasio
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Word Count: 557
Date: Thu, 10 Feb 2011 Time: 7:41 PM
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You can find very a number of reasons why company owners choose to acquire enterprise credit cards, but recent studies confirm that enterprise credit cards are viewed most helpful for keeping business and personal finances separate. Business owners say that their primary reason for utilizing business credit cards is to steer clear of their company expenses from getting mixed up with their personal expenses: Utilizing enterprise credit cards separates the two, thereby contributing towards maintaining the integrity of their accounting records.

90% of all tiny company owners use company credit cards purely to create company related purchases, with a lot more than 90% indicating that the primary require for enterprise credit cards is business travel. They believe that airline flights, automobile rentals and hotel stays would be cumbersome without business credit cards.

Maybe because of this close association between enterprise travel and company credit cards, you won't be surprised to hear that nearly a third of the enterprise owners think about money back rewards as the most attractive feature, although one-fifth values the frequent flyer mile rewards most. To a lesser degree, the ready acceptance of enterprise credit cards by vendors and suppliers was deemed to be an crucial consideration. Business owners are also happy with the 'no annual fee' feature offered by most enterprise credit card issuers.

Enterprise owners tend to use their company credit cards with really specific purposes in mind and are a lot more conscious about settling company credit card balances in full. According to recent surveys, 63% of all little company owners execute their credit card payments in this manner to steer clear of finance charges. By comparison, only 40% of all individual Americans pay their full outstanding balances each and every month. This means that small business owners are less likely than their individual counterparts to accumulate interest fees on their enterprise credit cards - a fact that issuing banks may not like because they earn their profits from interest charges. Company owners would advise you to pay your company credit cards in full or don't use them.

Interestingly, nearly half (46%) of enterprise owners thought that interest rates and related terms were their most crucial considerations when they applied for enterprise credit cards. They indicated an appreciation for the temporary money flow assistance that business credit cards supply, but expressed a dislike for paying interest fees and for debt accumulation. This concern for interest rates and their diligence in paying off company credit card bills to avoid fees implies that credit card businesses don't make a lot cash from small business owners.

Most enterprise owners locate one - or at most, two - enterprise credit cards sufficient for their purposes. Compared to the average American who holds four to eight personal credit cards, the survey found that the average little business owner only has one or two enterprise credit cards at most.

Actually, 86% of little business owners believe their company credit card spending limit was high sufficient for their needs and that too many enterprise credit cards would tempt them to invest more than is actually necessary. This attitude towards credit limits and several credit cards might be due to the fact tiny businesses, unlike ordinary people, do have access to alternate sources of debt financing - something that the ordinary individual doesn't.

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