Do You Use a Credit Card for Your Small Business?

It is possible to pay off short-term debts using small business credit cards.

  • When using a small business credit card wisely, you separate your business and non-business spending.
  • You should only use your company credit card for business-related purchases.
  • Small business credit cards can benefit your company if you find a credit card issuer who offers rewards tailored to your needs.

During the first few years of a company’s existence, small business owners must keep a close eye on the finance and manage their cash flow. Small business credit cards can be used to buy essential goods and services without delaying critical payments to other vendors, such as suppliers. Check out Best Card Payment Provider USA.

Weigh the advantages and disadvantages of the small business credit card before deciding whether or not to get one for your company.

Is It a Good Idea To Use Business Credit Cards For Small Businesses?

Although personal finance expert Eric Tyson advises against using credit cards for small businesses, he does say that you should keep your business credit card separate from your credit card accounts. A tax audit or a mix-up of your business and personal credit purchases makes it challenging to keep track of your business expenses.

Separating your personal and business credit cards allows you to take advantage of the quarterly and annual statements. These statements can be conducive if you create a budget or track your expenses.

Additionally, you must know how to use a company credit card. Short-term debts can be alleviated using a credit card, but long-term needs, such as financing a business or making large purchases, should not be done.

Various Kinds Of Business Credit Cards

Credit card issuers such as Visa, Chase, Visa, Discover, MasterCard, and the Open Network at American Express offer credit cards for small businesses. Airline miles and other perks can be earned through cashback. Several business credit cards have perks that accrue due to the purchases made by their holders, including cash back, airline miles, gas rebates, reward points, and savings on business supplies.

Rates Of Interest

New cards from credit card companies often have interest rates as low as 0%. No-interest credit cards allow you to borrow money for your business for a limited period without incurring any interest.

However, if you miss a payment due date or don’t pay off the entire balance before the promotional period ends, you may be hit with hefty interest fees on the whole balance, not just the remaining amount you owe. Look for the Best Card Processing for Small Business before you apply. 

Fees for each year

One credit card issuer may sway you to choose their card if they charge an annual fee while another does not. You may have more opportunities to earn rewards points if you pay a yearly fee. Depending on the credit card issuer, some may charge high foreign transaction fees to small businesses, while others may charge a lower price or none.