What You Need to Know About Business Credit Cards

What You Need to Know About Business Credit Cards
  • Opening Intro -

    Business credit cards are so convenient, yet they can also be confusing. While many business cards are connected to your business account, some are tied in with your personal credit, quite possibly exposing you personally should you default.


Despite potential challenges, a small business credit card can be a great way to manage your transactions as you charge certain expenses. Visits to the gas station, meals, hotel stays, airline travel, the purchase of office supplies and other expenses can be tracked. Moreover, you may also qualify for points earned, enabling you to redeem same for additional benefits.

New Accounts

As you consider your business credit card options, learn whether your new card will be associated with your business account solely or if your personal information will be attached.

When opening a business credit card, use your Employer Identification Number not your Social Security Number as your tax ID. Credit card providers should report your business information to a business credit bureau such as Dun and Bradstreet, not to a consumer credit bureau.

Easy Money

You should know that business credit cards are a debt obligation, one that you will need to pay back. They are also a form of what the Small Business Administration recognizes as “easy financing” or the quickest way to have access to needed funds. Unlike a loan or a line of credit, you do not have to explain to creditors how you will use your funds.

Business credit cards also make it possible to tap cash as you need it. Certainly, the loan rates for cash advances are quite high and there are fees involved. Still, when your company requires access to funds, a business credit card can make that happen immediately.

Manage Expenses

You can track business expenses easily and conveniently with a business credit card. Simply require your employees to use your company-issued card when handling purchases, making it easier for your tax accountant to track.

Business credit card information including purchases, statements and receipts can be reviewed online. Track what your employees are spending in real time in a bid to control spending and for mandating limits.

Designated Cards

Your business may benefit from using more than one card and having multiple accounts. For instance, some cards offer better perks at the service station pump, providing 5 percent discounts on all purchases. These savings can add up especially if you have a sales team that hits the road frequently.

Some cards offer better travel protection than others. For instance, a business credit card may include traveler’s insurance, covering your employee when flying or when renting a car. Other cards provide travel assistance, enabling card holders to get concierge-level travel help when using the card.

What Perks?

What separates most business cards from the pack are the perks offered. These benefits, however, will do you no good if they earn you points for things you do not need. Find a business card that gives you perk options and keep in mind that you will pay a fee for most cards. Business cards are convenient, should be handled with care and only vested to those that use them responsibly.


SBA: Should I Apply for a Small Business Credit Card?

Bankrate: Don’t Make Business Credit Card Personal

See AlsoHow To Get a Small Business Credit Card


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Categories: Business Financing

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".