The mere mention of credit cards can send shivers down the spine of a business owner that already has one too many payments to make. Credit cards are often the source for start-up financing, but sooner or later, business owners realize that using their personal credit card is far from the ideal choice. If you haven’t already investigated a corporate credit card, you might be missing out. While each card has its own set of perks, here are three important benefits of getting your credit card finances in order:
Save Time and Worry Less
Having a corporate credit card allows you to eliminate the monthly chore of separating all of your business expenses from your personal ones. In addition to saving time, you’ll no longer have to be concerned about whether you’re keeping thorough records, wonder if some purchases fell through the cracks or if you forgot to record them as business expenses for tax purposes. Some accounting tools can even import all of your credit card transactions automatically! And, of course, there will be no more worrying about having a purchase declines because you reached your personal credit card limit due to a large business purchase.
Establish and Build Business Credit
The use of a corporate credit card establishes and builds your business’ creditworthiness. As your business continues to grow, you’re likely to run into an opportunity that requires a small business loan for your business because of growth opportunities. At that point, you want to have an established record that shows you have good credit. By having a business credit card, you will easily be able to demonstrate that.
Some business credit cards may offer perks that aren’t available with your personal cards. While this certainly varies from card to card, it’s worth checking several options before deciding which card to use for your business. From increased cash back based on purchases, to no foreign transaction fees, to discounts on rental cars, these perks can add up to real savings and convenience. Keep in mind that some, but not all business cards charge a fee even if you don’t use them. Sometimes this fee is negligible compared with the savings or benefits that come with them so be sure to pay attention to the small print.
So before another billing cycle goes by, When trying to make a decision as to whether you want to get a corporate credit card consider the benefits. Do your research to choose if it is the right decision for you and if so what card will be bring you the most relevant benefits. Once you do that, you will be able to easily separate business from personal expenses, build your business creditworthiness, and realize the various perks that come from being a corporate credit card holder.
If you’re interested in a corporate credit card or other financing, find out more about what IOU Financial can do for you on our small business loans page.