Who Should Get One?
Small businesses can benefit from a business credit card to pay for products, services and to separate business expenses from personal expenses. Review the benefits below to see how this can have a positive impact on your small business.
Business specific rewards and incentives
- Cash back, points, travel miles, office supplies
- Discounts on business services – shipping, supplies
- Purchase protection – extended warranties, fraud protection
Manage cash flow
- Busy season, inventory, repairs etc.
- Manage short-term cash flow gaps
Keep your business expenses separate from your personal expenses
Streamline business finances
- Some cards track spending. Business cards break out the spending into categories such as travel, entertainment, employee spending etc.
Establish business credit score
- Make it easier to qualify for business loans and lines of credit
- Make sure the credit card issuer reports to a commercial credit bureau
- Making timely credit card payments and maintaining a low balance will help improve your business credit score
1099 benefits
- If vendors are paid by credit card, the credit card processor will file the required 1099 reports. This relieves you from the 1099 reporting requirements on these vendors