What are the advantages of having a business credit card?

Most small businesses choose to use credit cards to use for a portion if not all of the purchases associated with their business.

Monthly statements and annual summaries allow business owners to see the companies purchases and expenses at a glance.  Credit statements and especially end of year summaries are organized in tax-related categories making it easy to stay organized and account for expenses when tax time rolls around.

Rather than cutting checks for each purchase, companies can request that multiple cards be issued to employees in the company.  Statements will typically track the purchases of each employee on a single consolidated statement as well as online to keep track and manage company expenditures.

Businesses will often choose a card with an attractive rewards program.  The owners often benefit from using the credit card for company expenses by earning rewards points that are quickly accrued if the company expenditures are significant.  Many a business owner has taken a personal vacation thanks to the rewards accumulated by their company’s expenses flowing through a credit card provider.

Good Credit Sense:

For as convenient as business credit cards are, be sure to put budgets and other measures in place to ensure that employee purchases are tracked and are legitimate.   Many credit card companies will allow you to place spending limits on each employee card to ensure that their spending doesn’t exceed certain limits.