When you have your own small business, benefits are important. One of tools that you can use to grow your small business is a small business credit card. There are several benefits to having a small business credit card:
Build your business credit history
Even businesses have credit histories. It can be important for you to build a good credit history, as it will allow you to take advantages of other opportunities to expand your business. Before you can expand with a small business loan, you need to have an established business credit history.
Higher spending limits
A small business credit card comes with higher spending limits than a personal credit card. This means that you have the available capital to get what you need, when you need it. And it can be easier than getting approved for a loan from a bank. Just make sure that you carefully consider large charges to your small business credit card.
Earn rewards and perks
Many small business credit cards come with rewards and perks that you can use to further build your business. Earn travel, business equipment and gifts. These are all things that cost money — and you can earn them for free!
Protection for your small business
Credit cards offer extra protection. You can get things like traveler’s insurance and rental cars through your credit card. Additionally, all credit cards, including small business credit cards, come with fraud protection. This will protect you better than a debit card.
A small business credit card can add legitimacy to your company. It shows that you are a serious business, with separate accounting practices. Additionally, a small business credit card can simplify accounting by eliminating cash and checks. A built-in record of your business transactions is standard. Just make sure that you keep your small business credit card for your business only.
Enforce company spending limits
This can be very important. You can get additional cards for trusted employees, and you can set the limits. You can choose limits for the whole company, or choose limits for certain trips or individuals. You can be more in control, and everything is tracked.
It is important to remember that you need to be as responsible with your small business credit card as you are with a personal credit card. Don’t let things get out of hand. If you use a small business credit wisely, it becomes an asset.