There are many reasons why a small business owner would benefit from having a credit card account specifically reserved for their business use. First, though, let’s discuss the typical reasons why a small business owner would avoid a credit card!

Top 6 Reasons Small Businesses DON’T Have Credit Cards

1) Business owner is afraid that they will overspend if they have access to a credit card.
2) Business owner thinks it’s complicated to apply for and receive a credit card under the business name, or feel they don’t have strong enough credit to get one.
3) Business owner thinks finance charges and interest rates will be pricey and cost more money than the convenience of having a credit card is worth.
4) Small businesses don’t make enough buys to require a credit card.
5) Business owner likes the control over spending by employees when a check or cash has to be issued for buys.
6) Business owner applied for one and was denied.

Is the reason your small business doesn’t have a credit card found on this list? If so, you might be surprised how the benefits of having a credit card for your business can help propel your business forward.

Credit Card Benefits for the Small Business Owner

While many of the reasons small business owners decide not to get a credit card for their businesses are valid, there are many advantages to the businesses that do decide to get a credit card.

When you make all of your business buys and pay for each expense related to the company on a single credit card, you have an easier time with your bookkeeping. You can simply refer to your credit card statement each month, or on a quarterly or annual basis in order to see your buys and expenses at a glance. You can cut one check each month to pay for all of the purchases, making it much easier to manage your business checking account, also.

Having a company credit card allows you to get additional cards in key employee names. If your office manager handles the office supply buys, you can give her a card to make those buys with, for example. There is less time required of you to approve or deny his or her orders and no need to cut a check when the manager is ready to place the order. Simply give the employees with cards a spending allowance and you can quickly monitor the spending of each employee by glancing at the card statements.

If you choose a credit card for your business that offers a rewards program, you will benefit further by achieving the rewards under that benefit. As a business owner, you would decide if you have reason to purchase airline tickets, or if you would benefit better from a card with cash back or special merchandise purchases with the points you’ve earned.

Having a business credit card opens the door to many opportunities for your business that you wouldn’t have if you avoided having a card. Be sure to take these benefits and advantages in consideration when deciding whether or not to apply for a business credit card. If you fear your business credit isn’t strong enough for a card at this time, you can opt for a prepaid card or a secured credit card to build your company credit history. You’ll still receive all of the benefits and conveniences of a credit card, you’ll just need to take the extra step of funding a prepaid card before you can use it.

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Should you pick a business card that offers rewards or miles?

If you have no problem paying off the credit card debit each time the statement comes in, then the point rewards or cash back is the way to go for you. With the cash back and rewards credit cards, they give you rewards for spending money on everyday business needs, which is money you are going to spend anyway, so why not be rewarded for it. Another option to consider when choosing a credit card is the travel reward and miles credit cards. Do you or someone in your company travel on a regular basis? Then a travel reward or miles reward card is the type of card you might want to use. Most of the popular airlines have now teamed up with the credit card companies to bring business owners a reward for traveling for business purposes.

Should I get help tracking and reporting your expenses?

Most credit cards that are geared for the small business and even for more massive businesses now, have a feature that’s attractive in more than one way. The credit card companies can now track the categories that money is being spent on every month, and they have the ability to also provide a quarterly or annual spending report. This comes in handy during tax time. If you plan to use the same credit card for all of your expenses, this might be a great option for you.

Do members of your staff need to have access to a credit card?

Most of the credit card companies that offer cards to small businesses have a feature that grants employees of the business to also carry a credit card. This feature helps the business owner and the employee. When the employee travels now, they’ve the business with them to back them up in case anything should come up. Employees now can keep track of their spending for business related purposes a lot more efficiently now. The credit card companies can also track the credit card expenses separately so there is no confusion over who spent what. Not to mention the reimbursement paper work and waiting will now be eliminated. The credit card companies also allow the owner to set the amount of funds that are available to each card.

Small business owners also need to watch out for credit cards and the rates they charge with balance transfers and also with the APRs. This can be a great asset to a small business owner. Zero percent interest on balance transfers seems to be the going rate right now, and makes it nice to have an interest free loan for a tiny while, but beware! If you miss one payment you’ll lose that nice 0% APR and will have to pay the full rate.

Credit cards have changed so much over the years. They are very helpful to the business owners and their employees. Most credit card companies have now done away with the yearly fees that used to be associated with owning a credit card. So, if you’re a business owner that pays the balance each month, these are the types of cards you need to apply for.

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Credit cards, especially if you use one designed specifically for your business can give business owners a great advantage. They allow you to not only purchase items and pay on them later, but also grant you to keep track of your expenses. Some cards are designed to provide business owners with extra services such as online access, which will allow you to print out reports, keep track of the various cards you’ve given to your employees, and monitor the costs of expenses as you go.

These types of credit cards are an essential element for most any business, regardless of size. In some cases, a business’ expenses may get out of control, having a handle on expenses and costs from the beginning can help avoid this problem. What’s great about these types of credit cards is that many even offer rewards for using them in specific areas, which might include office supplies, improvement stores, airline flights, automobile rentals, and other business related expense items.

Using the right credit card might also grant you to control your expenses right down to the specific type of expense category it falls under. For example, some credit cards offer a service that grants you to view purchases based on categories such as entertainment, automobile rentals, airline flights, supplies, hotels, and so on. This is a great element for any business owner and can allow you to take control and put a stop of excessive spending in your company. Even if your chosen credit card company does not provide extra benefits like mentioned above, you can still use your statements and receipts to determine where your money is going. Many businesses, particularly those who provide their employees, management, or executives with business credit cards, require that the cardholder submit copies of their receipts for record keeping. This is crucial, particularly for tax time, and keeping track of expenses. By using one credit for all business expenses and only business expenses, you are assured the best method of keeping track. Even if you don’t use or are not offered those extras, you’ll still find comfort in being able to determine how much you are spending, if and when you need to cut back on expenses, and control the spending within your business.

Another great thing about many business credit cards is that they grant you to give employees, administration, and management their own credit cards under the same account. This further grants you to manage your business expenses. You can determine how much a particular employee is spending and on what. This can be beneficial if a specific employee is abusing their credit card privileges.

Furthermore, all expenses will still be on the same account, which keeps the business expenses intact and easily managed. Each cardholder will receive their own credit card and credit card number, allowing them to use it when necessary for a variety of different business related expenses, but will all go under the same account during billing time.

Controlling your business expenses is a crucial step in operating a successful business of any type. The right business credit card will help you do just that, there are lots of available, do your homework and determine which one will ideal suit your company and its needs.

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At one time, owners of businesses had to get business credit against the things that they owned personally and based on their personal credit score. This is a major liability because if your business doesn’t make it, you could lose your personal assets, too! Thankfully, there are now ways to obtain business credit that’s not just an extension of what you owe personally.

If you set the business up as an official entity- separate from yourself, you can apply for various business funding, including loans or credit cards. When a business is just starting out, it hasn’t had the chance to establish it’s own credit rating yet and so lenders will have to use your personal credit report to determine the level of risk in lending to a business you own. What happens if your personal credit score is not-so-good?

You can take some steps to increase your chances of getting a business credit card (or some other form of business funding) by doing the following:

• Take steps to increase your personal score. Before you go any further looking for business credit cards or other sources of funding, do you know what your score is? Is your credit score below 640? If it is, it is suggested that you attempt to increase the score first. Often, making all of your payments on time for 3 consecutive months will pull your score up 2 to 4 points. Check with a financial advisor for some ways of increasing your credit score as it will only serve to help you personally as well as in business.
• Create an LLC or Corporation. This type of business structure automatically means the business is separate, and not just an extension of you. If you’re operating a business under your name, and haven’t filed any official paperwork with the government or with lawyers and accountants- your business finances are no different than your personal finances.
• Have a physical address. Believe it or not, using a PO Box can hinder your ability to get a business credit card or loan! If you operate out of your home, you might consider getting a business mailbox from Mailboxes Etc, or UPS, as both offer a physical mailing address rather than a PO Box. Having a business phone line also will increase the way the business is looked at by lenders, and ensures the business is reachable.

If you are still unable to obtain business credit cards or financing on your first try, perhaps you know someone with a strong credit rating who would be willing to co-sign an application for you. You might not be able to have a business application for credit co-signed, but you can as an individual. Get a credit card in your name and then use it only for the business. Be sure to make the payments on time, and keep the balance manageable. Over time, you’ll build up your personal credit score, which is seen as a boost for the business validity- and eventually you’ll be able to obtain funding and credit cards under the business name.

Getting business credit cards and financing is a necessity that all businesses will face from time to time. There’s a need for cash flow in order to grow and increase the business. With some careful planning and preparation, most businesses will be approved for a business credit card even if the owner has personal credit that’s slightly less-than-perfect.

1. Keep your personal finances and business finances separate. It’s easier than you think to accidentally mix up your funds. Using a credit card that’s used only for your business expenses and buys eliminates the problem of labeling every transaction in your personal checkbook or on your personal credit card statements at the end of the month.

2. Build credit in the name of your business. If you obtain a credit card in your business name, the more you use it and make on-time payments, the stronger you’ll build the credit score of your business. After several months of building a good credit history, you might be able to obtain small business loans or other sources of financing if necessary.

3. Get stuff for free. There are numerous rewards programs with credit cards. If you choose one that works for your business, you can easily earn the things you usually purchase for free. For example, some rewards credit cards offer you a way to earn office supplies at a discount. The key to making a rewards program successful is to choose one with no annual fee and pay your balance off in full each month. If you travel regularly for business, it would make sense that you get a card with travel rewards- either earn miles towards free flights, or get free or discounted hotel rooms.

4. Easy record keeping. Owning a small business means you’re allowed to deduct certain buys on your taxes, but only if you have good records to prove you’ve made those payments. A credit card with an annual, itemized statement will make tax season a snap, regardless of the number of transactions you have made on your card.

5. Additional credit cards for employees. As your business grows, you may find the need to grant key employees within the organization the capability to make buys or pay for business expenses on your behalf. Most credit card companies will allow you to obtain additional cards in other people’s names. Your transaction listings and statements will show which credit card made each buy, allowing you to see at a glance whether the employee use of credit is being abused or not.

6. Concierge services. Depending on the credit card you select, you might benefit from additional services like reservation assistance, verification of flights, and even a personal shopping service. Did you forget to get your wife flowers for your anniversary? A swift call to your credit card concierge service and they have the capability to make the arrangements for you.

7. Travel benefits. In addition to the potential to save money on travel costs with a credit card rewards program, most credit cards offer travel accident insurance that helps cover you for things like lost luggage or flight cancellations.

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Small business owners are caught between a rock and a hard place. On one hand, they can’t totally refuse to take credit card payments if they want to stay competitive. On the other hand, they feel as though they have no power to negotiate the fees. Luckily, Congress has heard about this plight and has decided to step in. There’s proposed legislation that will permit the investigation of hidden fees that businesses report as being unfair. While some balk at the idea of the government getting involved, others hope that new rules will ease the pressure on small businesses.

If you own your own business and feel the pinch of high interchange fees, there are some steps you can take. First, look for merchant account providers that offer “Interchange Plus”. This is a straightforward pricing scale that used to be available only to big businesses. Now smaller businesses can take advantage of this easy alternative to the complicated, tier-based pricing structures currently in place. Some businesses save tens of thousands of dollars each year just by participating in an Interest Plus plan.

Another thing you should do is watch out for hidden fees. Avoid contracts that make you pay an interchange fee for declined transactions. Instead, look for a contract that doesn’t require you to pay for unauthorized charges. And ask plenty of detailed questions before you sign that dotted line.

Finally, look for merchant account providers that offer great customer service. When something goes wrong, you want to know that you can call the company and get it straightened out in a timely manner. This might mean ignoring the companies that offer rock-bottom rates. Remember that with customer service, you usually get what you pay for.

Think about the typical credit card rewards program- it may offer one point per dollar spend on the card, and be rewarded in the form of cash back or points redeemable for merchandise or travel. While these can be beneficial when used correctly, credit cards can offer a whole range of additional benefits to the business owner.

Get a Mini-billboard! Some credit cards are customizable, and literally let you put your business name and/or logo directly on the card. Every time you take your credit card out to make a buy, you’re placing your company in front of prospective customers.

Client gift possibilities just by re-gifting the rewards you earn. Whenever your credit card rewards program offers you gift certificates as rewards, you can use these as a wonderful client gifts. Enclose them in a nice card and mail to a deserving client.

Reduce the amount of money you owe. For any credit card that offers cash back rewards; look for one that offers the rewards in the form of a credit posted to your credit card account. This actually reduces the amount you’ve to pay for your purchases; and a 5% cash back rewards card is the same as shopping a 5% off sale!

Manage your employee spending. If you have employees that must make buys on behalf of your business, you can select a business credit card that offers free employee credit cards on your account, with customizable limits. This means you can limit the amount of purchases people are granted to make, and you don’t have to keep as close an eye on it. Most business credit cards offer quarterly statements, with buys divided by each individual credit card on the account- making it simple to see who’s buying what and how much it’s costing you!

Travel benefits. For anyone who travels, no matter how infrequently, you should never discount the travel benefits that come with credit cards. From travel accident insurance coverage to lost baggage coverage, these benefits can save you hundreds of dollars if you ever need to use them; and don’t cost you anything to have them when they’re included with your business credit card.

Personal assistant. Some credit cards even come with a concierge service, which is similar to having a personal assistant at your disposal, 24 hours a day, 7 days a week. Call the phone number on your card and you can have someone help you with directions, make last minute reservations at a local restaurant, get your travel arrangements scheduled, or send your wife flowers- all while driving to your next appointment.

As a small business owner, using business credit cards can offer you a wide range of benefits that are not as well known to the majority of people. Before you rule out a credit card you should look into the “extras” and see whether or not they’ll benefit you and your business.

Unlike traditional American Express cards, the SimplyCash Business Card grants you to carry a balance from month to month if you find it necessary- or you can pay your balance off in full each month and either way you choose, your card doesn’t charge an annual fee.

An American Express SimplyCash Business card is your ticket to the OPEN(r) network- the small business team from American Express. They work hard to find small business owners resources and discounts that help run businesses and save hard-earned money. You can get as many additional cards to your account as necessary- and at no fee. That means you can give each of your employees an American Express SimplyCash Business Card to pay for qualified expenses with- and you’ll earn cash back on each of those buys, as well.

The OPEN(r) program provides continuous savings on travel and shipping expenses, including Delta, Hyatt Hotels and Resorts and FedEx. Just pay with your card and the savings show on your statement. These savings are in addition to any savings and discounts you may already be receiving!

American Express SimplyCash Business lets you easily keep track of expenses and manage your account with the online manager complete with expense reporting options. Log in to see unbilled activity, schedule a payment or get reports to help make tax filing easier.

You can set up categories for expenses, and each time you receive a credit card statement your buys will be put within your designated categories. The convenient online expense reporting tool lets you set up reports for specific clients or by business trip or project- so you can see at a glance the transactions that are related to a particular category.

Your Citi Professional Card features no annual fee, no fees for the Thank You Network rewards program, and no redemption fees when you use your points for merchandise or services in the network. $250 in purchases on the card gives you 10,000 points redeemable for a $100 gift card. Then, you’ll earn 3 points each time you spend a dollar at participating retail establishments- including certain office supply stores, restaurants and gas stations. You’ll earn 1 point for each dollar spent at other locations, so you’re always adding to your Thank You network points balance.

Citi Professional Card with Thank You Network also provides cardholders with customer service access on a 24/7 basis. You can call the toll free number to talk to a representative or you can access your account online for up to the minute statement details, unbilled activity and to make a payment.

Beyond the Thank You network rewards, your card entitles you to a personal assistant service, 24 hours a day. Delegating tasks helps free up your time so you can focus on more important things: like running a successful business.

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The rewards program offers a full 5% rebate on purchases included gasoline and diesel fuel, personal supplies and new computers, office supplies, online advertising and most electronics. When you use your Advanta Platinum Rewards BusinessCard online, you’ll receive a 1% rebate. Whenever your unpaid rewards reach $50 in a billing cycle, you’ll receive a $50 check. It’s like earning money on business expenses you can’t avoid anyway!

As an Advanta Platinum Rewards BusinessCard holder, you can even select the points reward program, and earn a point for each dollar you spend on buys made with your business credit card. The points are redeemable towards travel and pre-paid cards. You can earn unlimited points, but they have to be redeemed within 3 years of earning them or they expire.

Everything you anticipate from a platinum credit card is included with the Advanta Platinum rewards BusinessCard. You’ll enjoy insurance when you rent a automobile, itemized expense reports and online account access for easy account monitoring, and even extended warranty coverage on purchases you make using the card. At some merchants, your card entitles you to discounts on various services and products.

While many credit cards would charge an annual fee for a card that offers rewards and rebate programs in addition to platinum level benefits, the Advanta Platinum Rewards Businesscard does not! You’ll enjoy a low, competitive interest rate and the capability to carry a balance from one month to the next.