OVERVIEW:
Jason A. Duprat, MBA, CRNA, Healthcare Practitioner, and Host of the Healthcare Boss Academy podcast, presents the pros and cons of having a business credit card. If you choose to have one, he provides tips on how to use the card wisely.
EPISODE HIGHLIGHTS:
- Jason shares an example of someone who funded their startup with a business credit. He changed his mind on the business and presumed he wouldn't be held personally responsible for the debt. He was wrong.
- Jason explains the differences between a small business credit card and a corporate credit card. A corporate credit card is more difficult to set up but it holds only the business liable for expenses versus the person.
- There are revenue requirements to set up a corporate credit card – $4million in gross revenue. Only C corps and S corps can apply – not LLCs.
- The great value business credit cards provide is their point system. Jason's Chase Preferred card offers 3 points for every $1.00 he spends. For example, if he spends 10k in a year, using the 3-point system, that's 30k points or $300 in cash value.
- Divide your credit card points by a hundred to get an estimate of its value in gift cards or if you were to cash it out.
- Set up reminders for your credit card payments to avoid paying interest. Jason advises not to trade interest for points.
TWEETABLE QUOTES:
“If you're responsible and you've proven you have a great track record of financial and fiscal responsibility, go for it [a credit card]. Get the extra rewards.” – Jason Duprat
“Be wise, be smart and be honest with your business transactions.” – Jason Duprat
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