If you are a small business owner, you may not realize the benefits that a business credit card can offer you and your business. There are several reasons why a credit card for your business is a smart choice. You might also want to consider getting a business debit card as another, potentially better choice.
Keep your business and personal expenses separate
One of the biggest headaches for many small business owners is keeping their business and personal expenses separated. With a business credit card, you can help to ensure that your expenses do not become hopelessly entangled. By using your credit card to make your business purchases, you can better track and manage your business expenses. Many credit cards for businesses also allow you to export your quarterly or end-of-the-year statements so that you can send them to your bookkeeping software or accountant. This can help you to make certain that you are receiving all of the deductions you are entitled when you file your taxes.
Enjoy greater financial flexibility
The ebbs and flows of cash to small businesses may pose problems during lean times. A credit card for your business secures extra funds for when your business is in a lull. It is important to keep your spending in check— a business credit card comes with interest, although the rates and terms are generally better than those for personal credit cards.
Build credit with your business credit card
Small business owners may be able to build both their personal and business credit scores when they get business credit cards. If you choose to apply for a card, check to see how the company that you are considering handles its credit reporting; ask whether or not it reports to both your personal credit as well as your business’. You should be aware that you may need to have relatively good credit to qualify for a credit card for your business with better rates, which is one reason why a business debit card may be a better choice.
Business credit card vs. business debit card
A business debit card may offer many of the same benefits as a credit card for your business— but with quite a few additional features. Unlike a credit card, a business debit card is prepaid and is not credit-score dependent. With a business debit card offered by Bento for Business you can:
- Separate your business expenses from your personal expenses
- Track and manage your expenses
- Control the types and amounts of purchases that your employees can make
- Prevent internal fraud
- Easily reload funds 24/7
Bento for Business— an unprecedented business spending solution
Enjoy the confidence of SSL-encrypted security and the ability to make deposits to your business cards whenever and wherever you need to do so. The card offered by Bento for Business also allows information to be exported to QuickBooks or your preferred tax-preparer for easy management and tracking so that you can control employee and business spending while also making certain that you can claim all of your business deductions.
You can learn more about a debit card for your business by completing our contact form to get started on your 60-day free trial or call Bento for Business at (866) 289-1104.
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