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 Many people think that they need a credit card such as a Citi business credit card in order to finance their businesses.  While business credit cards are exceptionally useful, it is not always the case that you actually need them in order to pay for the financing that you need; in fact, they may be better off merely as a credit-building tool than a credit-consuming tool.
Cards like the Citi business credit card are very helpful as they enable people to start building credit with little difficulty.  Business credit does, in fact, factor in information from your credit card in its calculation as to how much you are buying and increases your Paydex score accordingly.  However, it should also be known that business credit cards are much more expensive than straight debit transactions, as they tend to carry particularly high interest rates.
Loans for serious expenses that you need are going to probably come your way, and when they do, financing them through a credit card is not going to be the ideal way to go about it.  You can, however, build a significant amount of credit simply by paying off your credit cards, which will make you eligible for better and cheaper lump sum loans later on, which adds to the reasons why you should, perhaps, apply for a citi business credit card.
Knowing how to use credit properly is key to the development of excellent business endeavors.  You don’t need much to get the business running well at all!

This Business article was written by Mark Karavan on 3/28/2010