1st Source Business Credit Cards
Most people find it difficult to manage their personal finances without a credit card, and it is really no different for businesses that must be able to meet short term financing needs while effectively managing their cash flow. Establishing a 1st Source Business Credit Card account is essential for businesses transitioning from their start-up phase into their growth phase as much for access to credit as it is for enhancing their credibility within the business community. Businesses have access to a wide variety of financing options for their expansion needs; however, credit cards can play a vital role in the short term cash management function that is critical to a growing business. Here are five ways how a business can use a 1st Source Business Credit Card to improve its cash management:
Separate Business and Personal Finances: Nothing raises the ire of IRS agents or accountants more than having to sort through records that mix business and personal expenses. Businesses risk increasing their costs in the additional time it takes their accountant to prepare their taxes, as well the possibility of IRS audits triggered by commingled record keeping.
Purchase Control and Convenience: Increasingly, businesses use the Internet to purchase supplies and book travel which makes having a 1st Source Business Credit Card more essential than ever. And, having a business credit card available when a unique opportunity arises will eliminate the need to use personal checks or credit cards which can muddle record keeping. Credit cards with set spending limits are also the best way to track and control spending by employees. Extra 1st Source Business Credit Cards are available for company employees at no extra charge.
Cash Management: Credit card financing can be an effective strategy for covering the cost of doing business in anticipation of the revenue it will generate. Businesses can take advantage of the 30 day billing cycle of 1st Source Business Credit Card accounts to purchase inventory or materials needed for a customer order that can then be repaid upon receipt of the customer’s payment. And, because credit card transactions generate multiple records through physical receipts, transaction reports and online statements record keeping is much easier. Many business accounting software programs are able to import transaction data from online accounts which virtually automates record keeping, data compilation and cash flow analysis.
Build Business Credit (while protecting your own): A business needs a credit score as much as an individual does. A 1st Source Business Credit Card account with a solid payment history is one of the quickest ways for a business to build a credit history which can open the door to other financing options. And, because business and personal credit activities are reported separately your personal credit score is not likely to be affected by any adverse reporting such as inquiries or high debt to credit ratios.
1st Source Business Credit Cards
1st Source business cards are issued by Visa® which provides many added benefits and protections such as zero liability on lost or stolen cards, auto rental collision damage waiver, emergency card replacement, fraud monitoring and alerts, and extended purchase protection.
1st Source business credit cards may be issued free to employees with separate spending limits and authorized cardholders have access to Scoreboard, an award-winning expense management tool to help organize and track overall spending.
Visa® Business Bonus Rewards Card
Visa® Business Bonus Rewards cardholders receive 1 point for every net $1 spent, plus an automatic 25% bonus on all points earned each month. A $25 cash back reward is issued after your first purchase. There are no spending caps or limits on the points you can earn and you have five years to redeem your points. There is no annual fee.
Visa® Business Rewards PLUS Card
The Visa® Business Bonus Rewards card offers all of the same features as the Business Bonus Rewards Card except the rewards bonus is doubled to 50% on all points earned each month. The first purchase cash back reward is also doubled to $50. There is an annual fee of $50.
Visa® Business Cash Card
The Visa® Business Cash Card pays 3% cash back on office supply purchases and services for cellular, landline, internet and cable TV. It pays 2% on restaurant and gasoline purchases and 1% on all other net purchases. There are no spending caps or limits on cash back earnings and you have five years to redeem your rewards. You also earn a $25 cash back bonus on your first purchase.
Visa® Business Card
The Visa® Business card is a non-rewards card offering a lower annual percentage rate (APR) and a 12-month 0% introductory APR on purchases and balance transfers. There is no annual fee.
If your business could benefit from some or all of these advantages contact our business financing specialist today to see which 1st Source Business Credit Card options would best meet your needs. Call 1(800)513-2360 or visit one of our convenient banking centers at a location near you.
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