Do you Need a Business Credit Card for your Small Business?

The short answer to this question is no, you don’t NEED a business card. But consider the fact that most companies don’t operate without one, and also consider the fact that there are various benefits of having a business credit card for your small business. Some banks even offer credit cards tailored specifically for small businesses! Here are a few reasons you may want to consider getting a business credit card:

1. You’re business will be perceived as more legitimate.

There’s much symbolic power that comes with having an official business credit card. This holds true both for the people you do business with, as well as with your own sense of identity as a business. When you use a business credit card instead of a personal credit card to charge business expenses, your business will have an added sense of legitimacy and professionalism.

2. Business credit cards offer rewards specifically tailored to small business.

Just like with personal credit cards, business credit cards offer certain rewards as you accumulate points. However, business credit cards have rewards that are tailored to specific business needs. For example, business credit cards offer airline miles, discounts for business services, as well as discounts for business equipment.

credit card
Image by Dennis Kim

3. Business credit cards can help you tremendously with business expenses.

As you probably know by now, running a small business entails having various different business expenses each month. If you pay for them as you go, you’ll soon find that your ability to purchase items and services necessary to run your business will be quite limited. With a business credit card, you can charge all your business expenses to the card, and pay off the balance at the end of the month, enabling you to improve your cash flow. Just be sure to stay balanced and ALWAYS pay at the end of the month to keep from incurring fees and paying added interest rates.

4. You can more easily keep business and personal expenditures separate.

For me, this is the best reason to get a business credit card, especially if your business is very small. For those of us who own small, one-person businesses, it can be tempting to put all your business and personal expenses together. However, if you use a business credit card for all business-related expenses, you’ll be able to file taxes for your business and make tax deductions much more easily.

Now that you may be considering a business credit card, you may be wondering which card is best for your business. Be sure to do as much research as possible.

Good luck!

About the Author: Stella Walker is a freelance writer and business owner. She enjoys giving advice about credit cards, personal finance, small business strategies, and debt reduction. Stella welcomes your comments below!