Small Business Credit Cards

There are many options available these days for small business credit cards. Small businesses are in fact the largest market for business credit cards. This is because the small business sector is the driving force for any economy and has major share in creating new jobs in almost every country each year. The issuers of consumer credit cards like Visa, MasterCard and American Express have developed products for small business sector and their specific requirements. 

 

Many small business owners do not have a credit card account for their business specific purpose. They usually use a personal credit card to make payments related to business purchases but they overlook the importance of small business credit card for their business. There are a good number of reasons why a small business owner will benefit from having a credit card account specifically taken for their business use. If you make purchases by your business credit cards you can easily maintain your accounts book by simply referring to your business credit card statement each month or on a quarterly or annual basis. 

If the owner of a small business have poor credit or he want to establish credit for their business, he can also opt for secured small business credit cards which usually requires the cardholder to open a deposit account and make a specific minimum deposit before the credit card is issued. 

Advantages Of Small Business Credit Cards

1. Separate card for business and personal use – Tax and money management problems arise by mixing your business and personal transactions. Using a separate small business credit card you give the impression that you are serious about your business.

2. Easy listing of expenditures – Keeping track of all business expenditures incurred during last year can become a tedious task. With business credit card you are provided with year end statement with categorized transactions.

3. Helps build credit – It can provide a newly established business the chance to build good credit record. This will surely be useful in future with growing capital requirements as the business prospers.

4. Rewards – Nowadays rewards and discount programs are offered by credit card companies for small business credit card users.

5. Managing employee expenses – You can provide cards for your employees with predefined limits. You can easily monitor their spending on the separate statements.

One should use small business credit card with great responsibility like any other financial instrument. If used properly a credit card can help your business prospers while misuse will make your personally liable anc can even destroy your business and dreams. One should treat business credit card ownership as a privilege and you can avoid the devastating effect of credit card misuse. One should use the credit card with the same level of responsibility as the rest of business and you will enjoy many more years of profitable business growth.