Do You Have a Small Business Credit Card?

My banker once told me that the best kind of credit card to have in my purse is a small business credit card. Supposedly, because the purchased items were used to "grow" my business and also because the purchases, and the interest, are deductible on my income taxes.

Still, you must shop around for your small business card to get the best rates and terms. As a business, you probably have many purchases that are deductible and if you have a credit card with a lower interest rate than you pay a supplier - and no finance charge for quick payoffs, you might rack up enough "frequent flyer miles" to take your guy on a holiday vacation to somewhere with white sand beaches. Okay, that's my dream, but you can still benefit from a small business credit card.

• Obtain your small business credit card through a local bank.
• Talk to your banker about your construction goals and ask for a low rate.
• Keep your banker in the loop, especially if you have to make a late payment.
• Pay your other personal and construction loans on time.
• You'll need an Employer Identification Number, not a SS number.

The caveat: Don't put personal charges on a small business credit card. It's too confusing when you're doing your books and the IRS might not think it's clever.