by Renee Ruby

Created on: May 03, 2009   Last Updated: May 04, 2009

Many business owners and entrepreneurs already are aware of the many benefits of a business credit card. However with the changes in credit card laws, changes in credit card company practices and the lackluster economy many seasoned veterans as well as new business owners and entrepreneurs may need a primer in finding the right card and avoiding common pitfalls and misconceptions. Even the smallest entrepreneur, work-at-home types can benefit from a business credit card account.

Building good credit is paramount to sustain your business and aid in its growth. Improper or unwise use of business credit can literally run you and your business into the ground. The first thing you need to do in order to find the right credit card is to evaluate and analyze your business creditworthiness and spending habits. Some of the questions you need to ask yourself include:

*Do you currently have any outstanding debt? For example, a balance on a business start-up loan, any balances on industry specific credit instruments (i.e., Lowe's card for a building contractor), business mortgage or vehicle loans or leases *Are you or have you used personal credit cards for business expenditures? *Do you have regular monthly expenditures or are your needs more on the "as they come along" nature? *Do you make all your payments on time on business and personal debt or do you pay off balances regularly so you do not carry large balances? *Is your accounting method based on monthly or quarterly methods? *Do you keep an accurate accounting of all accounts receivable and payable? *Do employees often need access to funds for business purposes? * Does your business require regular travel expenses?

These are just a few of the questions you may need to ask yourself before searching for a business credit card. Honest answers will help greatly in evaluating the right cards for you and allow you to filter offers that do not apply to you. You want to find the card that has the lowest finance charges for your level of creditworthiness, offers incentives or rewards that will add value to your business expenditures and offers statements or online account services to keep you well informed about your expenditures and has a credit limit that can grow with your business like the "Advanta Business World MasterCard" which has no pre-set spending limit.

Your first and most important answer is that of your creditworthiness. Your personal and business credit scores will ultimately determine the cards for which you

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