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What Is a Business Credit Card? 5 Things You Need to Know

If you’re a business owner, you’re likely always juggling a variety of tasks. A lot of responsibility falls on the shoulders of a small business owner, and it can be hours of work keeping a business up and running. 

Managing the financials of such a business can one of the most stressful aspects of the job. One of the best things you can do to help simplify these financial responsibilities is to get a business credit card. 

What is a business credit card? It’s a little piece of plastic that can be your biggest asset in setting your company up for financial success. There are many benefits to having such a credit card, including perks and rewards. 

Read on, and we’ll walk you through everything you need to know about business credit cards. 

1. Streamlines Your Finances 

Why would someone get a business credit card anyway? It’s an amazing way to streamline your purchase history. Without one, it can be hard to untangle your personal and business costs, which can make accounting, taxes, and general organization a hassle. 

If you put your personal purchases on a personal credit card and business purchases on a business credit card, you’ll easily be able to get the information you need as it relates to either side of your life. 

Trust us when we say that this will really save your butt come tax time.

2. Almost Anyone Is Eligible

Oftentimes, there are so many eligibility requirements for various credit cards that it can stressful just figuring out if you’re allowed to use one. No such problem when it comes to business credit cards: almost any business is eligible to apply. 

If you sell goods or services for a profit and could use a business credit card to purchase certain materials then you’ll likely be able to get one. 

There are no requirements that state you need to have a certain amount of employees, hit a certain profit margin, or even have a physical address. 

What you will need is a strong credit score. You’ll also need to apply with all the essential information about your company, including name, contact, legal structure, annual revenue, and federal tax ID.

3. Access To Short Term Loans

As with all credit cards, the other major perk is how it can benefit your business spending. Being a small business owner often means committing to a life of variable and inconsistent income. 

Having a business credit card can help offset some of your more difficult financial months. It can offer you a short-term loan so that you can take care of payments while waiting for money to hit your account. 

And as long as you pay off your balance in full when the due date arrives, you’ll do so while continuing to build credit and avoid fees or interest. As long as you can manage this, it’s a total win-win. 

4. Build Your Business Credit Score 

It’s shocking, but many small business owners don’t even realize that they have a separate business credit score. It exists! 

You can build your business credit score easily by purchasing goods and paying off your balance in a timely matter. In this way, they work much in the same way that your personal credit score does. 

Having a strong business credit score can be very helpful if you end up needing money later on in your business’ life. Looking to expand or add another location? Release a new product? Take on the Christmas season? 

You never know when you’ll need to take out a small business loan. Having a strong business credit score when that time comes is sure to make the whole process easier and less painful. 

When you get a business credit card, you should ensure that the card you’re selecting does report to business credit reporting agencies. 

5. Enjoy Many Perks and Rewards

If the above reasons weren’t well enough reason to apply as soon as possible, there’s more. Most business credit cards come with rewards for your spending. 

Many business credit cards have rewards and perks programs that allow you to get money or miles back as you spend. 

Different business credit cards come with different perk offerings.

It’s important to do your research before applying to a credit card. You should ensure that you’re picking a card that could most benefit you and your business. Take a look at what kind of expenses your business has the most of, and find a business credit card that rewards that kind of purchase. 

You can use this page by Enjoy Compare to help you compare the perks that various business credit cards offer. 

Using a rewards business call can start providing your business with a return on investment right away. Many cards even often purchase insurance protection or other perks that can make your business even more efficient.

Make sure to read all the terms and conditions of a card before applying so that you’re confident that such a card will work well with your current business model. 

What Is A Business Credit Card? 

Opening a store or company of your own can be a huge undertaking.

Many newcomers do face the question: what is a business credit card? But understanding and applying for such a card can make the job of a small business owner so much easier and efficient, offering huge perks and many benefits. 

Want more advice on running your small business? Check out our blog for much more information.