Many new small business owners do not have a credit card account specific to their business. They might use a personal credit card to make business related purchases every now and then, but the majority of new business owners overlook the value a business credit card may provide to their business.
How Credit Card Processing Works
The place of business that accepts the credit card is called the Merchant. In order to be able to accept credit cards, the Merchant must open a Merchant Account with a Merchant Bank which is also known as a Sponsoring Bank or an Acquiring Bank.
Entrepreneurs Don’t Have Average Credit Scores
Fair Isaac, the company that develops the formula to determine credit scores looks at the average statistics of consumers and factors that into your score, called a (FICO). According to Fair Isaac the average consumer will have:
· One inquiry on their personal credit report in a given year
· 54% of credit holders carry a balance of less then $5,000 on all debts other then a mortgage
· Have access to $12,190 on all credit cards combined
Help Your Small Business Succeed With A Credit Card
One of the many difficulties of starting a small business is gaining access to capital during the startup phase. With the large growth in small specialty businesses across the country, credit card companies are beginning to design special programs to help this new breed of business achieve success. For even those small businesses that have access to capital, the perks and benefits associated with small business credit card programs, can still be useful to help you compete mor…