Small businesses have unique financial needs. You want your business to succeed, but you oftentimes don’t qualify for a
line of credit like larger business would. One of the biggest advantages of the
small business credit cards is that it is easier
to qualify for than a traditional business line of credit, and they can help you to conserve the business’ cash while you buy the
things that you need to help the business grow. Two out of three businesses now hold a business credit card, and more are getting
on the bandwagon every day. Nonetheless, business credit must be used with caution and only for business purposes. Some
business
credit cards come with no annual fee. There are some compelling reasons to use a business credit card to help
grow your business.
Business Credit Cards Have Higher Credit Limits
Credit cards designed for small businesses usually carry a credit limit of $50K or greater. This makes it a simple matter for
most businesses to get the equipment and supplies that they need or to make major purchases that the business would otherwise be
unable to afford. Moreover, this higher credit limit keeps the business owner from using their own personal cash or credit to
ensure the business’ success.
Business Credit Cards Boost Your Credit Ranking
By using your business credit card wisely, and making timely payments, you can boost the credit ranking of your small business
so that you can qualify for larger lines of credit in the future. This enhanced credit ranking is essential if you are looking
to grow your business strong and to eventually expand. You can double the benefit of using your business credit card by using
it to do business with vendors and suppliers that will report your credit performance to the major credit bureaus.
Business Credit Cards Do Not Affect Your Personal Credit Score
Some business owners worry that a business credit card could affect their personal credit ranking, but that is not the case.
In fact, your personal credit is not reflected in any of your business credit card transactions. Further, by taking out a
small business credit card, you will no longer need to sort out your personal transactions from your business
transactions when tax time rolls around each year.
Business Credit Cards Put You in Control of Employees’ Spending
All small businesses like to think that their employees will actively work to save the business money, but this is not always so.
By having a business credit card, you can see every cent that is spent by your employees, so that you can hold them accountable for
sticking to a budget. What’s more, a business credit card is much easier for your employees to use when compared to checks or cash.
Business Credit Cards Come with Perks
And finally, most business credit cards come with perks for your business. These rewards are the credit card issuer’s way of
thanking you for your patronage, and can range from discounts on shopping at certain retailers that cater to small business
as well as rewards like cut rate business travel or
business airport lounge access.
Choosing a Business Credit Card
Like any other credit card, you should “shop around” when looking for the best card for your business. Cards with no annual view,
low interest rates, and other favorable terms are optimal. Going with a well-known card issuer is sometimes a guarantee that you
will be happy with the card. Read business credit card reviews to see what other business owners have to say about cards that
interest you before you apply. For the best card offers for a small business visit our list of
top 10 business credit cards.
The article was updated on 3/19/2012.
Some information may have changed since that date. We strongly suggest that you carefully read the
Terms and Conditions statement that accompanies credit card applications.