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mab6311
Posts: 57
Registered: ‎04-08-2012
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What CC to which business?

Everyone has a differnet business and also have differnet needs for credit within their business. So I ask what is your business and what credit cards do you use for your business? why those cards? 

New Contributor
Axa
Posts: 136
Registered: ‎02-20-2013
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Re: What CC to which business?

This is a good question. The answers will help guide me to my first business goal card. Hope to hear from some consultants.


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Established Contributor
scenery_guy
Posts: 936
Registered: ‎07-24-2012
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Re: What CC to which business?


mab6311 wrote:

Everyone has a differnet business and also have differnet needs for credit within their business. So I ask what is your business and what credit cards do you use for your business? why those cards? 


I'm not sure you are going to get many replies with this thread. People may not want to get into too many details about their business and be able to keep anonymous. I'll give you a brief rundown of my very short business credit card path. 

 

I have a business in the entertainment industry building sets and props for the television industry. Yes many, if not all of you have seen my work but I will not give any other details. It's a thankless business so let's keep it that way. Hunter S. Thompson was correct when said "The TV business is uglier than most things. It is normally perceived as some kind of cruel and shallow money trench through the heart of the journalism industry, a long plastic hallway where thieves and pimps run free and good men die like dogs, for no good reason". I like to add that there is also a negative side. 

 

Anyhow long time in business (almost 20 years now - three different companies back to back). Up until mid 2012 I almost always paid for everything via check with the exception of travel related spending and that was done on a personal card - my only credit card at the time besides a couple of very old cards with low limits that were kept open for AAoA. 

 

Mid 2012 I had a great conversation with a client who put everything (including my invoices) on his AMEX. He was planning a trip abroad with his family and was paying for everything with points. Really? Tell me more... boom. I looked back at almost 20 years of spending and felt jilted. I left something on the table (never gaining points or miles for business purchases) and as a business owner you never want to miss any opportunity for gains. I guess I had been so busy doing business I never really looked at my options. I was a firm believer in paying for things up front in cash (check) and netted great discounts from suppliers. I was fortunate to always have a positive cash flow thanks to clients who paid in advance or upon delivery so I never looked at credit as I did not need it (or so I thought). Same for my personal spending, debit card, cash or checks almost always. 

 

I have quickly adapted to the game, looking at credit as a great tool both personal and business. Ultimately it's about the rewards (points, miles, free perks) as I still have the up front money mentality. Totally PIF so 0% means nothing to me. I get the grace period on the cards - and I use it now simply paying once statement posts but way before due date. I ignore the common idea of paying before it posts to keep utilization near zero as I don't care. From what I have seen the big banks want you to use the credit extended and although your FICO score might slide a bit the banks understand heavy usage but PIF actions. 

 

I put everything on cards. Every card I have earns points, miles or hotel points. I only carry AMEX and Chase cards. I only write one check a month now and that is for building rent. Everything else goes on a card that I am focusing on hitting a yearly spend for bonuses unless there is a category bonus (like 5x for office supplies or communication with Ink cards). Once I hit maximum spend for bonuses for the year I shelf the card until it's either needed for a specific charge (flights, hotels etc) or I have a very heavy spend month and I need the credit line to make purchases. Again I PIF and have made mid cycle payments but would rather wait until bill posts to pay even though I have the cash in the bank. 

 

My go to cards for business are AMEX Platinum and Chase Ink Bold. Both do not report to personal reports. Both have annual fees (but I don't care about AF as the benefits of the cards counter the fees in value to me that can't be replaced with cash). In a way I am sitting on the fence with MR and UR points and try to give both cards equal love. In the end I might decide I favor one but for now I just bank the points for the future. Both have great customer service as well and when I have an issue or question I call the number on the back of the card even if the questing is about a lower tier card by the same bank. The CSR is always happy to assist a top tier cardholder no matter what the situation. 

 

For travel I use my AMEX Delta Reserve. I'm near a Delta hub so it's my airline by default. I could fly other airlines but prior to getting in the CC game I have flown Delta and have kept some form of Medallion status and banked miles and MQM. It works out fine as with the Reserve I earn miles per dollar and MQM bonuses for spend levels. At $30,000 yearly spend I get 15,000 miles and MQM than at $60,000 yearly I get an additional 15,000 miles and MQM. The 30,000 MQM bonus bumps me one Medallion level a year so I go from Gold to Platinum just for spending on the card. That increases my chance for free upgrades to First Class quite a bit. The regular miles I accumulate for purchases or bonuses are used for upgrades from a coach purchase to first class when I don't think I will get the free one (and at this point in life I'm not flying coach coast to coast, sorry). 

 

My only business hotel card is the SPG. I don't stay at the properties that often but I do gather points for future travel or vacations. I try to cover the yearly $30,000 spend on this card quickly then put it away and only use when at SPG properties. It's a nice gateway card to use as a transfer point for MR points as I hear the value on these transfers are very good. 

 

I have an Ink Cash as well, it's a fine card but as of now I just use it for employee spending as I get free AU cards for employees (free cards!). I set up each person with a maximum monthly cap and all of them add up to the limit on the card so never any issues with me not knowing when some employee will use the card and cause it to go over limit. I recently gave key employees cards as AU on my Bold card and instructed them to use that card for large purchases as it's a NPSL card. 

 

Finally I added key employees as AU on my Delta Reserve card. I got them Delta Platinum cards for free. They get no benefits with the card traveling (that kinda sucks Delta and AMEX) but they help cover spend for bonuses. I suppose at some point I can pony up for AU Reserve cards for my keys so they can have lounge access for free but at this point they travel with me and I get me plus 2 in the lounge anyhow. 

 

I won't detail them here but I will post that I do use personal cards for business all the time. Every personal card I have sees usage for business based on bonus categories for spending. Two of my three hotel cards are personal (no business version available - I checked before applying and asked if it was cool and was told no problem). I try to hit spends on those cards to get upgraded hotel status for free upgrades for rooms or free internet. Oh free waters at check in too. Whoopee, it comes out of the sink in my room too. Can I have a cocktail? 

 

For reference I saw about 400,000 combined MR and UR points in 6 month spend last year. I think I can hit 800,000 or so combined MR and UR points this year. That's a lot of points considering it does not include miles or hotel points on other cards in use. Don't tell my wife but we are going to have one hell of a vacation with those points at some point. 

 

So that's about it. I'm not typing anything else. TIme to go to bed then get up and make the doughnuts so to speak. 

 

Chime in lurkers. You guys and gals have information too. Let's share it. 

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myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: What CC to which business?

scenery_guy ........Very well said!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

Choose what's best for your business that rewards you be it cash back, miles, intro offers and make the most of it.

Try and cover every category you normally  spend money on office, gas, travel, hotel, licenses, accountant, repairs, phone, electric, internet, insurance etc etc. Over the course of a year you just might be surprised what it adds up to.

 

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/13


New Contributor
Axa
Posts: 136
Registered: ‎02-20-2013
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Re: What CC to which business?

Thank you, scenery_guy. I appreciate your sharing this.


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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: What CC to which business?

My business is rental property... I own and manage several units... for me, Amex business lowes card was a no brainer....  Also plan to pick up Navy Fed LOC and Business Rewards later on to build my relationship with Navy for the business..   long term, I'd love to be able to purchase additional real estate in the business's name using Navy Fed as the lender.


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Valued Contributor
ryanbush
Posts: 1,292
Registered: ‎08-19-2012
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Re: What CC to which business?

@ scenery_guy = Baller...

 

just thought I would remind everyone!

 

In all seriousness though you have an awesome plan figure one and I definitly envy it!

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Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
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Re: What CC to which business?

Agree with everything in the post by Scenery_Guy.

 

Before the advent of credit card rewards and sign up bonuses, I pretty much felt indifferent between paying with cash or credit.  Back then, the only reason for me to use credit was for travel, reservations and the occassional online purchase.  I felt no compulsion to use any of the bank cards without some kind of rebate to me.

 

Once the sign up bonuses started to pop up and issuers competing harder for spending dollars, I switched overnight to all credit.  For business, we're Amex and Chase and have closed our other banking credit products.  Given the two companies generous sign ups and "best in class" rewards programs, there is little need for any other issuer given how we use awards--namely for tax free personal travel.

 

We use the Amex Open cards and the Ink Bold and Plus.  With all sign up bonuses and spending the past couple of years, our business MR programs has seven figures and our UR is coming close.  Given air travel and hotel redemptions, it's hard for me to fathom any other program coming even close to the value we're currently receiving.  Using the cards to pay quarterly taxes (now that the fee for Amex has been reduced to 1.89%) with 30% bonus on the Blue really makes it wortwhile, especially considering when used for business, the credit card surchage fee is fully tax deductible.

 

These days, if any of our vendors (lease, suppliers, etc...) refuse to accept CCs, we won't use them.  And, with very few exceptions, we won't use them unless they take Amex (especially travel and dining related). 


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