5 Reasons to Use a Business Credit Card

Start Your Business

Oct, 17 2017

*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

It’s a common mistake for business owners. When it comes to paying for business expenses you still pull out personal plastic. Don't sell your business short. As a business owner you need all the help you can get.

Business credit cards are different animals designed specifically to meet business owner's needs. These cards offer significantly higher credit limits, longer billing cycles and a number of valuable rewards that you can use to grow your business.

Here's five reasons it's time to retire your personal plastic for business spending.

1. Separate your personal credit from your business spending

A business credit card is a simple way to start separating personal and business expenses. Without a clear line in the sand it becomes difficult from an accounting perspective to identify actual profits and revenues for your business. That can create big headaches at tax time. Also, business and personal cards live on separate credit lines. That’s helpful if you need to run up a large balance. It won’t lower your personal credit score by hiking your utilization ratio.

2. Establish and improve your business credit score

Opening a business credit card is an easy way to create a business credit score. Building a business credit report early on will help you establish credibility with suppliers and vendors. Over time, building a positive business credit report with an established payment history can make it easier to secure a business loan down the road.

3. Cards for employees

If you have employees that are frequently filing expense reports and getting reimbursed, adding them as authorized users with their own cards can save everyone time. Some business credit cards offer you the opportunity to add employee cards at no additional cost. Break free from tedious expense reports. After all, time is money.

Get employee cards at no additional cost with The Ink Business CashSM Credit Card. This card also allows you to set and change individual spending limits any time. Plus, you'll earn rewards from their spending automatically.

4. Interest free float

A business credit card offers an easy solution to cash flow lags.

A business credit card offers an easy solution to cash flow lags. If you are waiting for a customer payment, it can act as a line of credit for your business. You could use your business credit card to pay for supplies, vendor services or inventory. Charge this month, pay it off next month as you receive revenue. One great example is The Plum Card® from American Express Open, which lets you take up to 60 days to pay with no interest if your pay your minimum due.

5. Earn rewards to grow your business

Many business credit cards offer a number of valuable perks that you can use to grow your business. What are the rewards your business needs most?

Do you need to fund start-up costs?

Look for a 0% intro APR offer. The Blue Business℠ Plus Credit Card from American Express offers a generous introductory APR of 0% for 15 Months on purchases and balance transfers and then shifts to a rate of 12.24% - 20.24% Variable.

Do you travel for work?

Look at cards that offer airline miles and perks.Capital One® Spark® Miles for Businessess offers one of the best sign-up bonuses right now. Earn a one-time bonus of 50,000 miles once you spend $4,500 on purchases within 3 months from account opening. Then, earn 2 Miles per $1 on every purchase, every day. Even better: the annual fee is $0 intro for first year; $95 after that. Centralize your business spending on one card to quickly build up miles that can take your business far.

Looking for extra cash to funnel back into your business?

Capital One® Spark® Cash for Business has the best sign-up bonus offer with a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening. Then earn unlimited 2% Cash Back on every purchase, every day.

If you are serious about success, using a business credit card is an easy tool that can give your business an added boost.