Small Business Credit Card

Should I get a business credit card for my business?

From startups to established companies, business credit cards can provide many benefits to any company, from building business credit to normalizing your company’s cash flow and earning rewards. Using a business credit card responsibly helps build good credit for your business, which is separate from your personal credit score. The benefit to establishing credit for your business is to create a credit history, which assists you if you need to apply for financing in the future. Not co-mingling your personal and business finances also helps to keep the validity of the company separate from your personal finances for tax purposes and in the case of legal action. Here are some things to consider when thinking about opening a business credit card:

Credit gives you flexibility

In today’s society, we are using less and less cash, putting a greater need on having access to credit as a mode of payment. Business credit cards offer companies the flexibility to pay for purchases without the hassle of writing checks or having funds immediately on hand. It is a valuable tool for payments in places where checks are not accepted, like online. Business credit cards can help protect you while making your purchases with purchase protection and liability protection in the case of fraudulent use by employees or if your account is stolen. Paying with a credit product can help your budget by allowing you the ability to better forecast your cash needs. When you pay for business expenses with credit you are paying your vendor or supplier the day of the transaction but your business is not obligated to pay out the cash for the purchase until the payment due date on your statement.

Online credit card statements make keeping track of transactions easier

Running a business is challenging, you don’t need to spend your time running down expense activity. That’s why it’s a good idea to consider signing up for online statements. Card activity and history is consolidated so you always have quick and convenient access to all of your businesses transactions, whenever and wherever you need it.

Some credit cards offer rewards

Rewards create an incentive to centralize payments through one payment mechanism to optimize the accumulation of points. Earn rewards points on all your company’s spend through business credit cards. Points earned can be redeemed for items that align to your business interest such as merchandise, travel, or statement credit.

In short, a credit card for your business can be an easier way to make payments, build business credit and can even offer rewards. To learn more about the small business credits cards we offer, please visit us online or call our Treasury Management team at 877.539.4838.

-Kent Byer, AVP/Product Development and Marketing

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