The Benefits of a Business Credit Card
1. Credit Limit – You know first-hand how expensive it is to run a business and how much resources are needed to keep that business relevant. One great thing about business credit cards is they allow you to have a higher credit limit, sometimes as high as $75,000. This credit limit allows your business to stay competitive by allowing you to purchase the latest technology and equipment that has become increasingly expensive but are required to grow your business.
2. Separate Personal Credit – It often gets confusing when you have to differentiate between personal and business transactions when you are preparing your taxes. A business credit card helps to alleviate this confusion by allowing you to completely separate your business expenses from your personal ones. Keeping your spending separated between business and personal spending not only allows for easy tracking and reporting, but also allows you to manage and protect your personal credit report and score independently of your business credit. For example, if someone in your company does not pay a bill on time, or if your company ends up spending more than it has, your personal credit won’t be affected. In other words, if your business goes down-hill, you won’t fall down with it.
3. Increase your Business Credit Score – If you can maintain a business credit card and manage your business spending wisely, this will help increase your business’s credit score quickly,—which in turn can afford you with greater financial assistance to help grow your business quickly. Some of the benefits of a high business credit score include the ability to qualify for business loans, increase your business credit card limits, and qualify for low interest payment to just name a few.
4. Be in Control – If you are worried about abuse of a business credit card by employees – don’t be. Business credit cards often offer a service to set limits on spending so you are still in control. For example, some credit card companies can put a programming code into the card to block the card from being used at certain locations. Companies can also work with you to determine spending limits either per user or per day. A tip to keep in mind: many business owners do not know these features exist because they are not highlighted online on the banks website, so if this is something that appeals to you, remember to ask your bank.
5 .Rewards – Just as with a personal credit card, business cards include rewards based on spending. These rewards are generally business friendly with discounts on things such as travel or supply stores that may be helpful to your business. Specific rewards are listed under “Different Card Choices and Prices.”