Why Having a Small Business Credit Card Will Make Your Life Easier!
by Carrie Hinkel on February 29th, 2008
If you’ve shied away from getting a business credit card because you think you don’t need one, that it costs too much, or that you don’t make enough purchases, then think again! Using a business credit can actually save you money and time – yes really! And for small business owners, those are your two most precious business commodities.
Advantages for having a credit card for your small business
Perks – With so many companies offering credit cards, there’s a lot of competition for your business. Today, credit cards are offering cash back, airline miles, hotel stays, merchandise and a slew of other hard-to-resist goodies – all free just for using a credit card instead of a check.
Less check writing – If you’re used to whipping out your business checkbook for everything from office supplies to purchase orders, why not make your life simpler and just write one check every month – to pay your business’ credit card bill!
Keeps business and personal finances separate – If you don’t own a business credit card, chances are you’ll end up using your personal credit card (for things like business lunches) and then have to pay yourself back with a business check. Talk about a hassle!
Getting additional names on a single account – What’s great about small business credit cards is that you can give key employees their own card, but everything’s still tracked on a single account. So, if Greg usually pays the purchase orders and Amy’s the one who "wines and dines" potential new customers, you can get them each a credit card under the business account. Expenses are easy to keep track of and it saves the time and hassles of expense reports and check writing.
Widely accepted – Back in the day, purchase orders were paid by check. But today, manufacturers and distributors welcome credit cards, as it’s an instant and secured payment. And, the more places you use your business credit card, the faster you earn those delightful perks!
Builds credit – Having a small business credit card (and paying the bills on time) can give a new business the opportunity to build a stellar credit history. In the future, this could be helpful if you need business capital in the form of a bank loan or line of credit.
Easy Itemization – Keeping track of your business expenditures come tax time can be nothing short of a nightmarish scavenger hunt – sifting through receipts, scouring through expense reports, etc. Most credit card companies will provide credit card holders with a year-end summary, itemizing and categorizing all the past year’s transactions. Now that makes life easy!
Having a small business credit card can make keeping track of expenses easy – not to mention the convenience and the rewards perks! It’s no wonder why over two thirds of small businesses use business credit cards! So, keep that bulky checkbook in the desk drawer and start using a small business credit card – once you start, you’ll wonder why you were so hesitant to get one!