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If you are a small business owner, have you thought about financing your company with a business credit card? Some entrepreneurs may feel hesitant to apply for a business credit card and choose to use their personal cards instead. Nevertheless, there are certain advantages of using it that is truly designed for entrepreneurs. In this post, we will take a look at each of the major advantages.
Get a higher credit line. A personal credit has a limited credit line so it's easy to maximize your available credit when you use it for business expenses. On the contrary, credit cards for small business are especially designed for business financing so you can expect a higher credit line as well.
A credit cardholder can enjoy $ 50,000 of credit line or even higher, depending on the issuer and credit rating. If you have a high credit rating, then you can expect to get a higher credit line as well.
Build credit business history. It can also be used to build a solid credit history for your company. Find an issuer that will accurately report your payments to major credit trackers like Dun & Bradstreet and Experian Business.
Remember that business credit trackers are different from consumer credit reporting agencies. If you will use a personal credit, then your payments will only be reported to consumer credit reporting agencies, not to business credit trackers.
Separate business and personal finances. It's very important to be able to separate your business account from your personal accounts. By opening a small business credit, you can easily separate these two accounts. In addition, you can protect your personal credit history from damages in case you encounter problems with your business credit debt.
Keep track of your spending. You can easily determine which of your expenses are eligible for tax deductions simply by checking your account. Aside from your monthly statements of account, you will also be sent quarterly and yearly account summary reports.
Convenient mode of payment. Using it to pay bills and make purchases is more convenient than using cash or issuing checks. It can also be used to place orders from the internet.
Get rewarded for your spending. Many cards offer special reward programs. Thus, as you use the credit card to cover expenses, you can also enjoy great rewards, discounts, and perks at the same time. Most reward credit cards for business are affiliated with business-to-business vendors and suppliers so you can enjoy discounts from your purchases as well.
Enhance your company image. When you apply for a credit card for business, you can have your company name and logo printed on the card. This is great way to enhance your company image. Suppliers and vendors would be more confident to do business with you when you have a credit card for business.