How Businesses Can Play with Business Credit Cards

How Businesses Can Play with Business Credit Cards

by Pamela Williams

Using business credit cards in financing your business makes it possible for small business owners to start operations even with limited budget. Unlike large corporations who may have connections with financial institutions, small businesses usually have to rely on their own finances with regards to their business expenses. However, business credit cards can help small business thrive in the market.


Short of Cash? Not with Business Credit Cards

With the help of business credit cards, small business are able to invest on the necessary equipment, purchase raw materials or buy merchandises to get their business running. Since a business credit card allows them to get these materials in advanced without paying for them in cash, a business can still buy some time and start marketing its products before the due date of their balance ends. If the purchases are made at beginning of the credit card's cycle, a business can take full advantage of the entire grace period that it is allowed. Small business can even have the option to pay for their debts in full or in installment basis.

In addition, any business is confronted with the possibility of cash flow shortage. A business can be interrupted in the middle of its operations when a cash flow crisis arises. The production can be unexpectedly put into halt when due to the lack of materials. A certain device can break down and may need repair immediately.

These situations must always be anticipated in a business. If you have business credit card, it would be easier to purchase materials in an instant or have your machinery repaired that same day without waiting for cash. During these circumstances, a business can realize how important it is to have a business credit card in hand.


Flexibility and Other Conveniences

Aside from incredible flexibility, business credit cards are very convenient when traveling. You can take your business credit card with you on your business trips without the need to bring a large bulk of cash. If you have employees, you can issue their own business credit cards so they can just charge their expenses from their business trip on the account.

By the end of the period, you should be able to receive a summary of all transactions made on your account. This makes reimbursements a lot easier and more accurate as well. The account report on business credit cards are also especially created to make accounting tasks easier. When it's time to file for your taxes, you can find that your summary of account is a great reference for calculating your taxes.

Furthermore, being able to study your account's summary allows your business to make an objective examination regarding its finances. The detailed report of your account will give you the exact answers to these questions and help you come up with an informed decision for your business.


Is the business spending on unnecessary purchases? Are all the employee's expenses really needed for the business? Do you need to make some adjustments with regards to your business expenses?

Let's not forget the Rewards

With all these advantages mentioned, the opportunity to earn rewards and incentives can not be left unmentioned. Business credit card companies provide rewards programs for all their business credit card holders. And because businesses usually spend in bulk and in large amounts of purchases, they also get to earn rewards more quickly and more frequently than personal credit card holders. So if you're in a business, shouldn't you benefiting from business credit cards?