If you are a small business owner, you may not realize the benefits that getting a business credit card can offer to you and to 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.
A business credit card helps to 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 tax preparer or your accountant. This can help you to make certain that you are receiving all of the deductions to which you should be entitled when you file your taxes. Bento is also insured by the FDIC . Read our customer reviews on Capterra and Trust Pilot.
A business credit card may offer greater financial flexibility
The ebbs and flows of cash to small businesses may pose problems during lean times. A credit card for your business may offer access to funds when your business is going through a down time. It is important for you to make certain that you keep your spending in check as credit cards for businesses come with assessed interest although the rates and terms are generally better than those for personal credit cards.
You may build your 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, asking whether or not it reports to both your personal credit as well as your business’s. 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 benefits as a credit card for your business but with some additional features. Unlike a credit card, a business debit card is prepaid and is not credit-score dependent. You may be able to enjoy the following with a debit card for your business:
- 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
- Easy 24/7 reloading
With a debit card for your business, you can enjoy strong security and the ability to make deposits to your business cards whenever and wherever you need to do so. The information can be exported to Quickbooks or to your 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. You can also see Bento customer reviews and trust partnerships.
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