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[P621]Prepaid Credit Card Business

by Peter Kenny, Pet

The spate of credit card offers and leaflets that most of us receive through the post or in our daily newspapers, which promise us unlimited spending power and in some cases blank cheques, has threw up a major surprise and that is the way that small businesses are using personal credit cards that you or I use for granted in our daily personal use, to finance their business practices.

Many are doing this to the tune of almost £2 Billion a month and this is not getting spent on business expenses that they can claim back from the company coffers. The biggest uses are travel or entertainment. The personal credit cards are being used to fund the workings of the everyday running of the business and in some cases the company car is being charged to the credit card.

This has all come about because of the easy access to credit card lenders funds, which are put under our noses at every turn. You cannot even go to a supermarket or shopping mall without being accosted by some credit card sales representative offering you the chance of spending someone else’s cash.

So all in all it is hardly surprising that many people who either have to fund a small business or wish to start one, would feel this to be an easier road to go down, rather than sitting in front of the local friendly neighbourhood bank manager and having to explain all the little details on why you need a loan, while asking you to offer up guarantees. The guarantees enable them to be able to get their cash back and this could mean putting your home up as collateral if it all backfires.

So all of this makes the applying for the credit cards the easy option, as it quite easy to apply to credit cards and see yourself with a spending power of thousands and thousands of pounds with an amount as much as £50,000 easily attainable. So much easier than applying to the bank for this amount of backing! There a simple reason for this and that is that the bank, even if you think that they are killing your business plan, have to look at all the pros and cons to your claim and will access things that may even go wrong that you have not even considered or put into your business plan, before they will loosen the purse strings.

By doing this, the banks are also protecting you, yep that’s right protecting you from any irresponsible borrowing that may lead to you falling into a debt that you simply cannot find away out of. By going to the bank, you will be protecting yourself personally and if you are going the way of a limited company, with the assets of the business alone being the sole contributor of any debts owed, where as if you go down the personal credit card route, you will in no doubt find that a couple of big burly bailiffs, will come a Knocking at your door and start taking stock of you and your families belongings and that would be a tad more harder to take than a NO from your bank manager.

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While a number of corporations wont even feel the difference, there are many corporations that may sink over its head because of this. Also, even though you may have a multi-billion dollar company and a couple of hundred of thousands of dollars of stolen money from the coffers of your business may not mean anything, you should show your employees that you will not stand around and do nothing and allow them to steal company money. This is just poor business practice.

So where does a corporate credit card come into the picture? Well, since most fraud, as financial experts and investigators have said, come from expenses and other monetary transactions, a corporate credit card would allow a company or a corporation to monitor the expenses done in the name of the company and is a great accounting tool.

Whether your company or corporation is extremely large, medium or small, a detailed accounting of every monetary transaction can be very hard. Any business owner that knows his business knows that all the expenses and every detail of his business' finances must be immaculately in order and can be easily understood so that he will be able to have a good grasp of his business' success or failure.

With a corporate credit card, you will be able to get all the details of the purchases done in the name of your company. You may have people under you given a corporate credit card for various reasons. You may have a person in charge of purchases, you may have a person who needs to dine and wine potential clients, whatever reason there is you need to know that every single thing that they charged to the company is legit.

With a corporate credit card, you will be able to get the exact billing statement from the credit card company where you applied the corporate credit card from. You will know exactly when, where and how much they charged to the card. You will be able to match these with their expense reports and eliminate the temptations they may have if they handle with cash, or if they use their personal credit cards.

You can easily confront the erring employee with any inconsistencies with his or her expense report and any suspicious charges done on the card. Accounting is never easier and using a corporate credit card has made the process better.

Also, using corporate credit cards will provide other benefits for a company or a business. Some credit card companies offer reward programs or cash back programs which could spell more profit for the corporation.

Also, as you use your corporate credit card for most of your expenses, you will be able to get a higher credit limit which can be used for big purchases for your company. You have more liquidity and this can be very beneficial in a number of situations.

So take the next step in conducting a business, check out which corporate credit card will best work for your company and save more money and earn more profits.

Article Source : Line Of Credit Bad Credit

About Author

Both Peter Kenny & Mario Churchill are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Peter Kenny has sinced written about articles on various topics from Credit Cards, Finances and Best Money Market. Peter Kenny is a writer for creditcards-gb.co.uk.For additional articles and an extensive resource for everything about credit cards and loans, please visit us at