Small Business Credit Cards
Owning a business can be cash-flow intensive and unfortunately many small business owners need to use credit in order to provide the cash flow they need to succeed. There are many benefits to using business credit cards for your cash flow needs. Not only are business credit cards more appropriate for companies to use, they help keep all business expenses separate and easy to track. Below are some of the top reasons for a company to use a business credit card.
Higher Credit Limits on Business Credit Cards
While traditional credit cards typically have fairly low limits, a business credit card can come with a limit of over $50,000 or more. This makes it much easier for a company to make big purchases where they would not be able to with normal credit cards or cash. In addition, with a high limit card your businesses doesn’t need to have enough cash on hand to cover a major business purchase.
Small Business Credit Cards Offer Travel Benefits
Compared to a regular credit card, a small business card can offer more travel perks. For many small business owners, traveling is a big part of the job and it can get really expensive. Travel benefits might include reduced travel fare for flying or renting cars as well as other perks while traveling. Many cards might also come with included travel insurance that would cover lost luggage, auto rental insurance and even emergency roadside services. In addition the business can rack up “miles” which can be used to purchase additional travel or even be used as cash back.
Rewards and Business Perks
As mentioned above, many business credit cards offer special rewards programs and discounts on things. Generally, you earn points for ever dollar you spend. These points can then be redeemed for discounts or other purchases. The amount of points you can earn vary from card to card. Certain cards will also offer discounts for purchases made at certain retailers or travel companies. These discounts alone can make having a business card very worthwhile.
Seperate Your Finances with a Small Business Credit Card
Having a seperate small business card is the best and easiest way to keep your business and personal finances separate. They can also help with business Budgeting. Just be sure to pull out the proper card when making a purchase. This will also be a big help when tax time comes because you will not have to worry about separating business expenses from personal expenses. Many business cards offer a year end statement that seperates purchases by tax category making finding deductions and Money Management much easier.
Track Employee Spending
If you have employees that make transactions using the company money, giving them a personal business credit card to use can make it easier to set limits on their spending as well as keep control of their spending. Many Business Credit Cards also provide breakdowns by employee so you can see how much each employee is spending.
As you can see, there are many benefits for a company to use a business credit card. Not only does it show professionalism for the company, it helps to provide good cost tracking it at the same time. A good small business credit card, when used responsibly, can help your business be more successful.
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