Business credit cards are the biggest source of financing for small business owners, with 59 percent of business owners having used credit cards in the past 12 months for business purchases. One third of businesses report 25% or more of the company's overall debt/financing is credit card debt. Within the last year, many credit card companies have increased interest rates and cut credit limits.This causes concern for many business owners, but a business credit card is a necessity. There smart option is to pay off the credit card balance in full each billing period.

One of the first rules of business is to keep business and personal expenses separate. It may be convenient to pay for business and personal expenses at the same time, but this will eliminate the advantages of using a business credit card. Not only will it be easier to determine business expenses for tax preparation, but it becomes easier to track spending and analyze data.

By using a business credit card for all business purchases, a company can easily manage all expenses on one statement. This enables businesses to maintain a firm control on their financial future. Intelligent use of credit cards enables a company to effectively negotiate with lenders and other credit card issuers to obtain the best credit terms and conditions for the company.

The key is to use your business credit card wisely. Before you choose and use a business credit card, make sure the card and the purchases will benefit the company. Business credit cards can be convenient and very useful if used correctly.

Businesses face challenges in today's tightening economic environment, pre-funded and secured are a great solution to start building business credit or to rebuild business credit.

A pre-funded credit card acts like a debit card. The account is funded through an ACH bank payment or a wire transfer. Cardholders then may use the predetermined amount of funds to make purchases anywhere the card is accepted. As the funds run down, you monitor your balance online and simply add additional funds as needed, at your desired frequency. It's that easy.

A deposit account is a secured credit card, but acts similar to a credit card. The applicant submits a deposit of a predetermined amount to secure their account and establish an initial credit line. The credit line is equal to the deposit provided. Clients may increase or decrease a deposit as needed.The business is then invoiced and makes payments the same as a regular credit card.The cards, controls and online services are exactly the same as a credit account and seamless to your employees.

What are the benefits of a secured credit card?

Establishing business credit- If you are a new business and need to start building your business credit history.

Reestablishing business credit- If your company credit history has been damaged, you may only qualify for a secured credit card. Using this secured card appropriately will help rebuild your credit and qualify you for an unsecured card.

Reporting and controls- You will receive all the benefits of regular business credit card with controls, reporting, security and discounts.

Useful for transactions that require a credit card - Many business transactions require a credit card for purchases. This will give your company the freedom and ease needed to make these transactions.