Top Benefits of Small Business Credit Cards

One of the major concerns for those who have small businesses or who are just starting up with a business is financing. In the past, it was obligatory to come up with a significant amount of cash that will be sufficient as working capital to put up a business or even a small enterprise. Today, small businesses can take advantage of the fact that they can use credit cards for small businesses to startup to help them not only to start up a business but in managing it as well. So we will fill you in on the best way to go about it and even the best credit card for small business startups.

Advantages of Small Business Credit Cards

Small business credit cards can be of great assistance to prepare all the equipment you need to begin your business operations. Some of the essentials for a business are a computer, printer,fax machine, telephone, and a cash register depending on the type of business you are. With a small business credit card, you don’t have to buy all these things with cash. You can charge these expenses to your small business credit card and pay them off in installments over a period of time.

1. A small business credit card can assist with your cash flow

If you purchase supplies to do a job and bill the client upon completion, a small business credit card allows you that needed extra bit of time. You should keep this in mind and perhaps apply for a credit card with a higher limit. If you think it may run over thirty days, you would want to apply for a card that offers the option to pay over time. Look at a lower interest rate small business credit card.

2. Small business credit cards can also be used as your working capital

You can buy materials and supplies with your business credit card so that you can start manufacturing your products right away or you can also wholesale merchandise that you plan to put on the market and start selling right away. Afterwards, you can pay off these expenditures on a monthly basis using your credit card.

3. These cards allow a business to obtain good credit

Good credit is the use of rented funds to produce more cash. In use, borrowing results in the company earning better. Small business credit cards make this possible. The business is thus able to hold the finances for other purposes like investing for interests. They can pay in small installments that will not put a damper on the financial stability of the company. They can also wait to pay till they are capable of paying.


4. Small business credit cards make bookkeeping a lot easier

Instead of keeping a detailed record of all dealings and receipts, you can depend on the credit card company to send you a detailed list of all the purchases made by the credit card. This makes accounting easier in that losing documents and receipts can easily be avoided. Thus, the business can make more precise financial reports.

The benefits that small business credit cards give are truly rewarding. Speaking of rewards, most credit cards for small businesses offer great incentives for their card holders whether in the form of cash rebates, cash back programs, or free travel tickets. Since businesses usually purchase in bulk or large packages, the opportunity to earn points equivalent to bonuses is much bigger than for those who use regular credit cards.

If you’re thinking about starting up your business with a small business credit card, you are very much welcome to do so. Just remember the advice that applies for all those who own credit cards. Pay off your monthly charges on time and never put off one single payment.

Types Of Small Business Credit Cards

There are a lot of credit cards in the market that offer introductory rates with zero percent interest for a period. But which one is the best credit card for a small business startup? I think they extend this for six to twelve months, depending on the bank’s current promo. For a startup business experiencing difficulty obtaining profits, this is the way to go. Businesses should also take note of the annual percentage rate (APR) after the introductory zero percent interest promo.

Of course, there are also credit cards in the market that specifically cater to businesses whether large or small. These cards offer discounts on purchases for most business transactions, such as for FedEx, Hyatt Resorts and Hotels, and other relevant business purchases.

As you further expand your business, your business credit card would still come in handy as purchasing more for your business will let you obtain rewards, such as free flights, free hotel stays, and continued savings from a zero amount paid for the annual transaction fee. This would also be handy with emergency transactions and, at the same time, you can redeem rewards fit for your business.

Establishing your small business is a tough task to do but with some hardships and bulk of strategies, you can easily make your business profitable. This also entails some street smarts, some networking, and good budgeting. Nonetheless, still be wary of using credit cards for your business use as overspending can harm your startup business more. Spending within your means and monitoring your budget closely is always the safest way to go about it.

Featured Image: Pixabay/Public Domain

Posted on May 5, 2023