What Are the Benefits of Using a Business Credit Card?

The benefits of using a business credit card are as good if not better than personal cards. They provide ready access to capital business owners can use for most business expenses. The Federal Reserve’s 2021 Small Business Credit Survey reports that 21% of business owners applied for a credit card to fund their businesses. 

If responsibly used, a business credit card allows entrepreneurs like you to invest in resources to grow your company when you may not have access to working capital. Cyclical businesses, in particular, often depend on credit cards to shore up revenue drops during off-seasons. 

Business card benefits include:

  • Financial flexibility and access to cash flow.
  • Points and cash-back rewards
  • The chance to boost your credit rating
  • Separate accounts and streamlined record-keeping
  • Keep better tabs on employee spending
  • A higher credit limit and purchase protection

Why Do I Need a Business Credit Card?

As a business owner, you should be focused on operating and growing your enterprise. Yet, making business purchases is just as crucial, and this is where a company credit card comes in. 

Whether your company is a sole proprietorship or operates with a few hundred employees, the method you use to make purchases can impact your business.

If you’re eligible, there are a lot of great benefits to applying for a business credit card, including:

Financial Flexibility and Access to Cash Flow

Having access to ample funds is often a key concern for small business owners. Having a business credit card on hand allows you to keep expenses in check and manage your cash flow. 

It also provides an easier way to buy supplies, inventory, and the equipment you need to keep operations running smoothly.

Points and Cash Back Rewards

Similar to personal credit cards, business card issuers offer lucrative rewards to cardholders tailored to their spending habits.

By taking advantage of business card perks, and cash-back cards, you’ll be able to reduce your out-of-pocket expenses by earning for everyday purchases you’d be making anyway, including:

  • Office supplies
  • Dining out
  • Shipping and advertising
  • Internet, phone, and cable
  • Purchases at gas stations
  • Travel miles

The Chance to Boost Your Credit Score

When appropriately managed, a business credit card can help you improve your business credit score. Be sure the suppliers and vendors you work with report your financial transactions to the credit bureaus. 

By carefully managing your balance and making payments early or on time, you can improve your credit report and show credit card companies that your business is a low-risk investment.

Separate Accounts 

Using a business credit card allows you to separate your business expenses from your personal expenses. Having separate company statements simplifies your tax preparation and accounting records.

Using a business credit card helps make accounting more straightforward. When you want to know how much your business spends during any given period, you can review your account online. 

Most corporate cards offer an app or online portal to help you file and track your expenses. This convenience and organization carry over when you want to secure a business loan or file your taxes. 

Streamlined Record Keeping

Having your documents in one place will save you the frustration and time of tracking down receipts or other financial paperwork. The last thing you want to do at tax time is spending hours rifling through monthly statements to differentiate personal charges from business charges. 

Plus, you’ll pay less in accounting fees if you can avoid having your accountant sort through your records as well. Using your card for all of your business expenses, you won’t have to worry about commingling business finances, and you can find all of your deductions within the same account.

Keep Better Tabs on Employee Spending

Your company may require its employees to travel, make supply or inventory purchases, or other duties that require them to spend company money. In that case, a business card can benefit you by allowing you to track their spending patterns.

Employee credit cards are often free with business credit cards. Your card issuer may allow you to set spending limits based on the amount of the card’s available credit. 

A Higher Credit Limit and Purchase Protection

Establishing a business credit card account will allow you to have a new credit line expressly for your company. This eliminates any worries about having enough credit to cover business purchases if you’ve already used your personal card to pay your bills.

Business credit cards generally offer credit or spending at much higher limits than personal credit cards. Some business card credit limits are set at more than $75,000 or $150,000. 

These higher limits empower you to make larger company purchases you would not otherwise be able to make with cash on hand or a personal credit card. Often, business credit card issuers will provide higher limit purchase protection to cover more expensive investments. Many types of cards also offer interest-free financing, so you can pay for these larger purchases over time without incurring interest.

Choosing the Right Business Credit Card for Your Firm

The card you choose will depend on several factors, including your company’s size, the credit limit you need, and your priorities. While you may want to sign up for multiple business credit cards, you should limit your applications to cards with benefits that match your company goals and objectives. 

While business cards offer many benefits, they can be harder to qualify for if you have no credit or poor credit.

The Revenued Card’s Benefits to Subprime Business Owners

Small businesses struggling to survive economic downturns often have nowhere to turn. Those with a poor FICO score are usually turned away by credit card issuers, and there are few innovations created to meet their needs. 

The Revenued Business Card makes funding attainable and helps small business owners like you capitalize on growth and expansion opportunities.

Be first in line to apply for the Revenued Business Card by joining our waitlist today. You can also call our finance team at +1 (877) 662-3489 for more information. 

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