Having a business credit card comes with many perks. It can increase your cash flow by allowing you to make purchases for your company without having to pay the costs upfront. Plus it can help you better manage your expenses.
What are the benefits of having a business credit card?
There are many benefits that come along with having a business credit card. Here are some of the biggest ones:
- You Can Earn Rewards for Your Business
Most business credit cards come with a variety of attractive rewards and incentives. While every credit card boasts different perks, some of the most common ones are cash back, sign up bonuses, access to airport lounges, discounts for shopping at certain stores, frequent flyer miles, car rental perks, and discounted hotel stays. It’s important to think about which rewards and perks are most important to your business, prior to signing up for a new business credit card. As your company grows, you can also add additional employee cards to your account that can help you earn additional rewards for their spending.
- It’s Convenient
You can beat the convenience of being able to charge expenses on a credit card. Instead of writing checks, making bank transfers, or having to carry cash around, a credit card makes it incredibly easy to pay your bills.
- It Can Help You Build Business Credit
Having a business credit card and paying your balance off on time will help you build good business credit. In the event you need a business loan or wish to open a line of credit with vendors, having strong business credit will help you get better repayment terms and interest rates.
- You’re Protected
Not only can you set limits on employee spending, but many credit card companies also offer purchase protection. This allows you to dispute charges in the event of fraud, or if goods you purchase are stolen, damaged, or lost.
- It Helps You Separate Your Personal and Business Finances
A business credit card saves you the headache and time of having to sort out which expenses are business related and which ones are personal expenses. It is much easier to track your business spending and at the end of the year you get a detailed and categorized breakdown of your expenditures so that you can maximize your tax deductions. Plus, having a separate business credit card protects your personal credit score.
What are the disadvantages of business credit cards?
While the convenience of business credit cards is a huge advantage, it is important to note that credit card companies usually charge a high interest rate. If you neglect to pay your balance on time, that interest can quickly add up. Additionally, interest rates can fluctuate, so stay up to date with your credit card company’s policies and rate changes.
How to Pick the Right Business Credit Card For Your Business
There are pros and cons to all business credit cards and it is important to select the one that best meets your company’s specific needs. For more information about how we can assist you in determining which credit card best fits your business’s needs, email us at INFO@BUSINESSOWLS.COM or click here to speak to one of our recommended credit card experts.