Tips For Small Business Owners: Advantages Of Using Business Credit Cards

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Tips For Small Business Owners: Advantages Of Using Business Credit Cards

If you are a small business owner, you can benefit a lot from owning a business credit card.

As the name implies, a business or company credit card is a line of credit that is used by a business instead of for personal use. It is normally used by small business owners. The card has higher credit limits and does not affect the user’s individual credit score.

Of course, if the business fails to pay for the credit card bill, the business owner (in this case, the cardholder) is liable for it.

Business credit card deals may not seem any different from the usual cards available in the market. But this kind of credit card, when used properly, can spell the difference between survival and failure in the difficult world of finance and business.

So what are the advantages of business credit card deals and how can one take advantage of them?

Easy qualification: There are requirements when you apply for a business credit card, but they’re not as stringent as requirements for personal credit cards. Owning a business with good standing can be good enough qualification, even if you may not have the best personal credit history.

Credit limit: As mentioned earlier, business credit cards offer higher credit limits that make it easy for a business owner to make big and major purchases for his business. It’s usual for a credit card to have a $50,000 credit limit — or even higher. This way, you wouldn’t have to spend cash or use your personal line of credit to buy items necessarily for your business.

Separate line of credit: Having a different credit card for your business makes sense. Your business transactions won’t affect your personal credit card history. Therefore, it won’t affect your credit score if you end up making late payments. It also goes both ways, of course: your business won’t be hampered by personal purchases and payments. It makes sorting out finances, transactions, and taxes easier.

Easier monitoring: If you have a line of credit that’s solely for your business, you can monitor every transaction conveniently, especially if you’re not the only one in charge of making the purchases for your business. This also allows you to control employee spending, as you can set limits on the allowed credit on the card.

Incentives. Much like personal credit cards, some business credit card deals offer rewards or incentives for use, such as discounts on office supplies or access to affordable business services. Some even offer cash back incentives or rewards that offer free shipping, phone, or cable services.

Convenience: Business credit cards may offer additional services as well, such as online financial tools and bookkeeping assistance.

That said, business credit card deals are not made equally; it’s best to look for deals that best suit your business. Check out deals that offer longer grace periods, so you will have enough time to pay off your monthly credit card bill. Be careful of cards that offer cash advance as well; this may seem like a convenient and practical feature, but some banks offer steep interest rates for it as well.

In the end though, when used properly, business credit cards offer great benefits for entrepreneurs.

Looking for business credit card deals? Learn more about things you should consider at
Business credit card deals are perfect for entrepreneurs who want to push for better profits and opportunities. Read more about this at

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