The Advantages of Having a Business Credit Card

No matter the size of your company, there are numerous benefits to getting a business credit card and using it wisely. With so many options from which to choose, you’re almost certain to find one tailored to your needs and those of your company and employees.

But to determine which is best, it’s important to do your homework and thoroughly research the various cards available. Look at APRs, fees, and rewards at the very least. Doing this before you apply can save you a lot of headaches down the road.

It’s also important to look through all of a card’s requirements to ensure that your business is eligible and has a good chance of being approved. One important restriction to look out for is bankruptcy, as well as any sort of delinquencies in your credit history.

Here are some of the many advantages you’ll get from having a business credit card:

• An air of legitimacy: Whether making a simple purchase or entertaining a client, a business credit card underscores the legitimacy of your venture. People know that getting one requires that a business is profitable and well established.
• The chance to start building a positive credit history: The proper use of a business credit card allows you to establish a quality credit history, which will go a long way in helping you grow your business in the future.
• Higher spending limits: Business credit cards offer higher spending limits than standard cards. This lets you make larger purchases and gives you more room to carry a balance on the card.
• Extra protection: Business credit cards offer users higher levels of protection, thereby reducing the risk of many problems your business may face. These include travel insurance, lost luggage insurance, auto rental insurance, and extra layers of identity theft monitoring.
• No need for cash or checks: Consider, for example, a business trip. With a business credit card, you no longer have to give your traveling employees cash advances or take the time to add up receipts when they return. Instead, employees can use a company card for all of their business expenses, and their spending becomes far easier to track. Additional credit cards for your employees are typically available at no extra cost.
• Spending limits: Business cardholders are able to set spending limits for the entire company, as well as for each individual employee. This is an ideal way to help you and your employees stay on budget, and it gives you extra control over everyone’s spending habits, including your own.
• Perks and rewards: Most business cards offer better perks and discounts for their users than cards designed for personal use. These include special rates on gym memberships, cell phones and calling plans, office supplies and equipment, rental cars, hotel stays, and airfare. And those are just a few. Such discounts are a great way to save money on your normal business purchases. Using a business card can also earn you rewards, such as cash back.
• Built-in expense reporting: Another great reason to use a business card is the detailed expense reporting offered by issuers. Many now give you expense reporting compatible with Quicken and Microsoft Money. Cardholders can quickly and easily tie this information to their accounting data. This may prove especially useful at tax time, as it indicates exact spending and provides backup for receipts that may have been lost or misplaced.