Business credit cards provide many benefits for the owners of small to medium-sized companies. That's encouraged their widespread use; according to recent report from the Federal Reserve, 83 percent of small businesses used credit cards at the end of 2009.
One reason for the popularity of business credit cards is their convenience. Business owners who use a single credit card for both personal and business expenses can find it difficult and time-consuming to separate the two categories at tax time. But with a dedicated card for business, those owners have an accurate and easy way of keeping track the purchases that are related only to their businesses.
A business credit card may allow you to track spending by each employee that's authorized to use the business account. Some credit card companies will also let you set different spending limits for different employees.
Business credit cards may be helpful for small to medium-sized companies that have found it difficult to get a line of credit for their expenses these days. The cards can provide a needed cash flow, giving them another 20 to 30 days grace before they need to make payments.
There are many similarities between the use of personal and business credit cards, and the considerations that go into choosing them. For example:
(For more suggestions on choosing credit cards, check out this advice from the Federal Reserve.)
A good place to start your search for business credit cards is here at CreditCardXPO.com and/or with the bank where you have your personal credit card account. Even if you're applying for a credit card to be used solely for your business, don't be surprised if the credit card company considers your personal credit history as well as the creditworthiness of your business when deciding whether or not to approve your application.
There are a few important distinctions between credit cards issued for personal use and for business use.
CreditCardXPO.com offers a variety of business credit cards on our site. Check them out when you're ready to enjoy the convenience and benefits of having a card that's dedicated to your business.