There’s no way around it: Having a business credit card is important. Opening a business card can be a great jump towards improving your business’s financial health and creditworthiness. But that’s not all. Read on to take a closer look at some of the most important advantages of a business credit card for your business.
Easier Book-Keeping
If your personal and business accounts are not separate, staying on top of your bookkeeping can be difficult. Some of your accounting data may get lost or mixed up, which can lead to tax issues that may hurt your business or cost you more money.
A business credit card allows you to keep track of your expenditures clearly without having to go through all the purchase receipts to sort out specific expenses. What’s more, you can integrate your business card with your favorite accounting software to access the company expenses records instantly.
Greater Spending Limits
Most personal credit cards have a limit of $20,000, and this is usually for people with an above-average credit score. However, this amount may not be enough to sustain your company and employees.
Business credit cards have a more flexible threshold where entrepreneurs can get up to $60,000 in credit, allowing them to achieve their entrepreneurial objectives and clear businesses’ recurring expenses.
[mpp id=”4″]
Boost Your Business’s Credit Rating
Using your business credit card regularly and paying your credit card loans on time can help boost your credit score. A positive business credit score is key to the best loan terms and lower interest rates. A positive credit score will also allow you to access higher loan amounts that will enable you to expand your business rapidly.
Business Perks
Business credit cards come with irresistible incentives for entrepreneurs and their businesses. For example, you get extra points for every purchase you make with a business credit card. Also, some business credit cards have travel credits that allow you to travel at discounted rates.
Cash backs and hefty signup bonuses are other rewards you can enjoy after opening a business credit card.
Better Control Over Employee Spending
Some of your employees may take advantage and spend more business money than required during business trips or when purchasing inventory.
However, when you use a business card as your primary source of funds for your business, you can keep tabs on what they buy and how much they spend. Furthermore, you can set a spending threshold on the business card for each employee.
Open Your Business Credit Card Today
We hope that you have understood the benefits of having a business credit card. Open one today! But before you apply for a credit card, make sure you select a reputable credit card company with no hidden fees or unfriendly interest rates. Also, make sure the card you choose allows you to earn rewards on your spending and has credit tools that you can use to improve your business’s financial health.
