How are business credit cards helpful for owners of small businesses?

Answered on December 03, 2016
Updated on October 31, 2021
The content is accurate at the time of publication and is subject to change.
James Williams James Williams
Business credit cards are different from normal credit cards in that they have additional features and benefits that suit small businesses and in fact are helpful in quite a number of ways too. By using these business credit cards the right way, owners of small and medium sized businesses can make some savings and also manage the financial affairs better. To start with the monthly expenditure report of the business credit cards is of great help to see what are the general patterns of expenditure and if it is possible to make savings in any area. This would also help to catch any wastage of resources. Another great benefit of the monthly expenditure report of the business credit cards is that it helps business owners spot patterns in money flow, identifying when more liquidity is required and when it is not required. Some business credit card issuers even change the billing cycle to ensure that the liquidity is optimum at critical points of the month. Repayment options are also available so that a separate payment plan could be devised for a larger expenditure stretched over a period while the rest of the billing happens normally. This way the business owners wouldn`t grow anxious seeing a huge outstanding balance on their credit card every time they pay their bill, worrying about the accumulating interests. The business credit card will also ensure that there is less dependability on using cash thus reducing the risk to a large extent. Business credit cards also come with various other tools to help the business owners to manage their finances more efficiently and effectively. Business credit cards also sometimes come with their add-ons which employers can give to their employees. The biggest benefit from this is that the employers get extra loyalty points as the expenditure on the add-on cards increases from the employees on a regular basis. In the current scenario, when many card issuers are providing zero liability insurance and round the clock monitoring to prevent fraudulent activity, business credit cards are far safer than dealing in cash all the time. Not only do business cards reduce the potential risk that arises out of cash, it also brings accountability to the business. If you spend using business credit card, you will have records of every cent that has been spent and you can also reduce the paperwork and books and records that you will have to maintain otherwise.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

User Comments about This Question


To choose the best business credit card you should think about your goals - what do you want to get from your credit card? There are plenty of options you may choose from. Business credit cards may help you earn rewards - cash back or travel rewards, may give you high credit limit and allows to save money with 0% APR. If you, for example, are a frequent traveler, consider airline co-branded business credit cards with additional benefits like priority boarding or free checked bag. Don't forget to take into account your credit score when choosing a small business credit card.
If you want to get a business credit card, first of all, look up your credit score. Business credit card issuers will consider your personal and business credit score (if you already have it). Secondly, determine what you need from your business credit card. If you travel often, choose a credit card with rewards and travel benefits, if you spend a lot - choose a card with cash back rewards. Don't forget to look for 0% APR on purchases and no annual fee. After that, be prepared to perform information about your company, including revenue. You may need to provide SSN, legal business name,...
You can try applying for a personal loan to fund your business. Use our card match tool to see which loans and credit cards you can apply. Note that you may need a bank account to apply for some credit offers, so make sure you have one.

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