What Every Entrepreneur Should Know About Small Business Credit Cards

Any business owner can tell you that while getting a business started is difficult enough, it’s only the beginning of the battle. When it comes to keeping a business running, you’ll need to continue buying supplies and covering many other expenses that are associated with business operations.

credit cards for small businesses

Many business owners choose to cover these expenses through the use of small business credit cards. Still, other business owners are hesitant to get a credit card for their companies for a number of reasons. Let’s take a look at the advantages and disadvantages of small business credit cards and you can easily determine whether or not one is right for your business.


“¢ Record Keeping – When it comes to compiling an expense report, it can sometimes be as simple as looking over the company’s credit card statement.

“¢ Points! – This works just like a consumer credit card. As you spend money, you’ll gather points to spend on things like airline miles and gift certificates. You can use rewards to compensate outstanding employees or to further benefit the company in some way.

“¢ Good Bank Relations – Besides keeping your stress levels low, paying your company’s card bill on time will boost your business credit with your bank. This will put you in their good graces if you ever need another line of credit from them in the future.


“¢ Interest – Small business credit cards have been known to have rates that are considerably higher than what consumer credit cards carry.

“¢ Abuse – Ideally, a small business credit card is to be used for business- ­”related expenses, but anyone who has it can use it for whatever they wish. This means that you have to be careful about who you lend the card to and what they charge to it.

“¢ Credit History Linking – Some, but not all, banks tie a business credit card to the owner’s personal credit, so paying the business’s credit card bill late could adversely affect your personal credit history.

Now that you know the pros and cons of small business credit cards, you can determine whether or not one is right for your business. Should you decide to get a credit card for your company, remember to pay off the balance every month, be extremely careful about which employees use it and keep track of all of your receipts for tax purposes. Keep these tips in mind, and you’ll be able to make smart, business savvy purchases that can help your business thrive over time.

About The Guest Author: Manny Skevofilax is a business financial consultant whose influence has secured fiscal stability for businesses across the United States as well as overseas. He possesses experience in various industries including web design and marketing, banking, real estate, educational counseling, hospitality and manufacturing. When he’s not spending time at PORTAL CFO Consulting, you may find him at local business-related events in Baltimore, MD.


2 Comments What Every Entrepreneur Should Know About Small Business Credit Cards

  1. Virtual office assitant

    Hi Manny
    Thanks for throwing some light on credit card details. I too agree with you that there are pros and cons by using them and we have to be more cautious while using credit card and get the best result out of it.

  2. Marco Carbajo

    Good post Manny!

    While I do agree with the benefits you have listed I would also like to add that business credit allows you 10 to 100 times greater credit capacity then you can obtain personally.

    Also, there are different types of business credit cards each carrying its own benefit. For example, a secured business credit card may be a good option for a business owner with less than perfect credit while a pre paid business credit card may work best for employees.

    Finally, the number one reason to use business credit cards is to separate your business expenses from your personal expenses.

    Using the same credit card for both personal and business can open you up to corporate veil piercing which is the #1 most litigated issue in corporate law today.

    All the best,

    Marco Carbajo


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