Business Credit Card

Having a business credit card can be advantageous to your small business.

Among the many benefits to having a business credit card, 3 top the list.

• It is tempting as a small business owner to mingle business and personal accounts. This can create a tax nightmare. Using a business credit card exclusively for business needs, without drawing from personal accounts, aids in keeping personal and business finances separate. This is a skill that becomes essential at tax time.
• Making payments and purchases with your business credit card also allows more time to manage your money. The relatively new check 21 law allows for immediate processing of checks. This may negatively affect your account balances if you are not prepared. Using your business credit card for these transactions offers the small business owner valuable time to better manage accounts.
• As with any kind of revolving debt, if you manage your business credit card well, your credit score improves opening more possibilities for your small business.

Apply for your business credit card at the bank where you are already an established customer. They know you there, and are more likely to go the "extra mile" to help you through the approval process. Keep only one business credit card and avoid applying for a new one to transfer balances and get a lower introductory interest rates. This is called card hopping and can negatively affect your credit score.