In these tough economic times, the financial side to your small business may seem overwhelming. Fortunately, there are things you can do to ...

In these tough economic times, the financial side to your small business may seem overwhelming. Fortunately, there are things you can do to make sure that you are able to make necessary purchases without having to drain your bank account. Signing up for a business credit card is becoming the latest trend in small businesses for this exact reason. According to the online small business information website AllBusiness.com, “…more than 65 percent of small businesses utilize business credit cards, and this number continues to rise.”

The great thing about small business credit cards is the fact that they work so similarly to personal credit cards, but with more features that cater to a business. Below lists of few of the benefits a business credit card can offer so that your business can continue to grow – without stressing out your personal checkbook.

5 Reasons Why a Small Business Credit Card Is Something Your Business Should Have

Separate Personal Credit – As a small business owner, you know better than anyone that it is always a good idea to prepare for the worst. Having separate personal credit ensures that if your business plummets, you won’t go down with it. In addition, separating your two credit lines will aid in easy tracking and reporting, as well as help avoid confusion between personal and business transactions when tax time rolls around.
Be in Control – You might love your employees, but there is always a chance that they may get a little too excited about the possibilities a business credit card offers. Fortunately, most credit cards allow you to set limits on spending either per user or per day. If you are more concerned with where the credit card is being used as opposed to how much, there is also a way to put a programming code into the card to block it from being able to be used at certain locations.

Credit Limit – You want your business to stay competitive and continue to grow, and new technology and equipment are becoming necessities to make this happen. A higher credit limit will give your company the funds to make this happen. Some business credit cards have a limit as high as $75,000.
Rewards – Everybody likes rewards from credit cards. A business credit card will offer you rewards just like a personal credit card, but they are generally more tailored to business-related expenses such as travel or business supply stores.

Increase your Business Credit Score – This point works exactly as it would with a personal credit card. If you manage your business’s spending wisely, you will earn many benefits that will help your company grow quickly including an increase in credit card limits, low interest payments, and business loans if necessary.

Business credit cards are easy to find and easy to sign up for if you are interested. Most major credit card companies, such as Chase ® and American Express ® offer business credit cards. If you go to a credit card company website, there is almost always an entire section devoted to business credit cards.