Helping Small Business Owners Manage Credit Wisely

credit card 150x150 Helping Small Business Owners Manage Credit WiselyBBB and Capital One Managing Credit – Made Simpler Partnership to offer businesses tailored advice and easy-to-follow tips online for free

“Faced with the realities of the economic downturn, millions of small businesses have been forced to take a second look at their finances, including examining their spending habits and how they use credit,” said Stephen A. Cox, President and CEO, Council of Better Business Bureaus. “Regularly examining your business’s finances, including how and why you use credit, is important. BBB’s Managing Credit – Made Simpler provides easy-to-follow tips, checklists, and advice compiled to help small businesses better handle and successfully build their business’s credit record.”

Most small business owners understand the need to manage credit effectively, however there is no “one size fits all” model of how to do it. Managing Credit – Made Simpler provides a clear set of guidelines that will help them make wise decisions on their small business credit and identify strategies to help small business owners take charge of their business’s financial condition.

“Used wisely, credit can be an invaluable tool. Small business credit cards can provide much-needed cash flow, and many business cards offer special record-keeping resources and valuable rewards programs that really make a difference,” said Rajsaday Dutt, Senior Director, Capital One’s Small Business Card division. “Armed with basic information about credit, including understanding of card agreements and knowing what’s expected of business cardholders, small business owners can make better choices about how

they’re using their cards. Our goal is to empower small business owners to take control of their finances and benefit from card features that can really work for their business.”

The new guide, Managing Credit — Made Simpler: Small Businesses, is available at and includes practical advice and checklists to help small business owners choose the right type of card to meet their business needs. The guide outlines some of the most common features, benefits, and issues to consider before choosing a card, including:

Expense tracking. Most business cards provide expense reports that are divided into categories and make it easy to track your spending and report expenses for your taxes. You may be able to import the information into your accounting and tax software.

Higher limits. A business credit card may offer higher spending limits than a personal card, which can help with monthly cash flow. It is also important to separate your business from your personal expenses to simplify reporting.

Cards for employees. Many business cards allow multiple employee cards on your account with pre-set spending limits, which helps build business credibility and simplifies expense tracking and travel reimbursement.

Helps build your business credit record. A good history managing a business credit card can help you build your business credit record and improve your profile when applying for a business loan and line of credit.

Added protection. A business credit card may also provide travel insurance and auto rental insurance for you and your employees.

Special perks. The business card may offer airport lounge memberships, concierge services, and other special benefits.

Extra benefits. Most business cards offer rewards programs or cash rebates.

BBB and Capital One created Managing Credit – Made Simpler to give customized credit management guidance to different types of credit users, based on their specific needs and perspectives. Small business owners will now have a variety of topics to choose from that will all cater to the needs of running a successful small business. Topics include strategies to pay off balances faster, choosing the right kind of card for your business, how to improve a business’s credit score, strategies to leverage cash and credit, and fraud prevention guidelines.

All of the resources and guidance made available through Managing Credit – Made Simpler can be found online for free at

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