The benefits of a small business credit card
There are many benefits of why a business owner should have a small business credit card.Many do not have a business credit card for various reasons, but knowing the benefits will most likely change your mind if you are thinking about getting one.
A small business credit card works like an individually-owned card but there are a few perks. They include a lower APR, more flexibility in the credit limit, and other benefits that individual bank card holders don't always get. Business establishments can benefit greatly from using these cards, here a few reasons why.
Benefits of a small business credit card:
If you need funds quickly for your business, for materials or for an emergency, a business credit card is easily accessible, if cash is not.
When you make all your purchases for the business with one card, it makes it a lot easier for bookkeeping. You can refer to your credit statements each month to keep track of what and how much you are spending. You can pay off your monthly purchases with one check making it much easier to manage.
Using the business credit card allows you time to pay off expenses. This is great if a large business purchase is made, you won't have to come up with all the money right away.
If you get a card with a rewards program, you will benefit by achieving the rewards from business expenditures. Some credit cards even give cash back or other incentives when purchasing certain materials.
Business credit cards can contribute to a credit rating and can build trust in the company if they are used properly. Having a card under the business name also makes the company look bigger than it really is.
Not as demanding
Having a business credit card allows you to have other cards in the names of some of your employees. There is less time required of you to approve or deny the office managers orders and you don't need to write a check when the manager is ready to place the order.Just give those with the cards a spending allowance to take care of some purchasing. You can always monitor their spending by looking at your credit card statements.
Why don't some businesses have credit cards?
Some owners are afraid they will spend too much of the businesses money.
Owners may think interest rates and charges will be too expensive.
Some businesses don't make many purchases so they don't see the need for one.
Some business owners like to have control over what the employees purchase by having them ok it first. Some owners apply, but are denied.
Most popular business credit cards:
Advanta Platinum Rewards Business Card MasterCard
This card puts all business expenses into one account and it earns rebates and rewards for the business.
Citi Professional Card with Thank You Network
You can set up categories for each expense and each time you receive a credit card statement your purchases will be placed within your designated categories. This card can earn you merchandise, rebates and more.
American Express Simply Cash Business Card
This card is great for earning cash back on your purchases.
Discover Business Card
This card provides you with everything you need to keep track of your business expenses and employee credit use. You can also earn cash back rewards on all of your purchases.
The benefits of using a small business credit card are hard to overlook. Having a business credit card opens the door to many opportunities for your business that you wouldn't have if you didn't have a card. The time and effort you save can be put towards more meaningful tasks that can increase productivity and income for your business. Make sure to take all these benefits and concerns into account when deciding if you want a business card for your business.