innovate arkansas

Conventional wisdom might dictate that mixing business and pleasure is a bad idea. That might or might not hold true in all cases, but when it comes to credit cards, there should definitely be a clear line between business cards and personal finances.

At times, just like any other individual, a small business owner will need a credit card for reserving a hotel room or getting something shipped to them quickly, said Larry Brian, director of the Arkansas Small Business Development Center at the University of Arkansas.

"We think it's very important to not use your personal card for business," he said.

But on the other hand, Brian cautions small business owners that even more importantly than with a personal credit card, a business card needs to be paid off each month to avoid potential fees.

Still, no matter how small the business is in its infancy, a credit card is an important component.

In addition to paying off the card in a timely fashion, several other basic measures carry over when using a business credit card, especially when it pertains to security and avoiding fraudulent or unauthorized charges.

Users should exercise caution when disposing of card-related materials and when letting others use the card, Brian said.

"Especially if you have an employee you know is leaving or is disgruntled in any way, they might be looking for something they could stick you with," he said.

 

Headline: Banks Cater to Small Business Customers

Several Northwest Arkansas banks offer cards tailored to the needs of a small business, including Arvest Bank, which has two different cards available. One is the Visa Corporate card.

This card is for customers that require fewer than 10 cards. Each card can be adjusted for the spending levels and restrictions for individual employees.

"The corporate card is just like a credit card, you can restrict basically any transaction on a user, for example, if my manager only wanted me to be able to purchase at Office Depot," said Michelle Young, vice president and commercial card product manager with Arvest Bank Group in Fort Smith. A pre-set spending limit can also be placed on the card.

Another feature of the corporate card is that purchases can be monitored via the Internet.

An administrator can see where an employee has used the card and if any attempts have been made to use it for unauthorized purposes, such as a cash advance, Young said.

The Visa Purchasing card is for small business owners that need more than 10 cards. It can give owners an even more detailed picture of account activity.

Depending on the retailer, the purchasing card can be monitored down to the date, time, location and specific purchase.

In addition to the added information, the purchasing card can also be set up to deduct certain purchases and expenses to individual departments within an organization.

This can save money, time and the cost of the check itself.

There are no annual fees for either the purchasing card or the corporate card.

First Security Bank also offers a small business Visa card, said David Russell, the bank's market president in Fayetteville.

There are no annual fees for the card, but the bank does require the balance to be paid at the end of each month.