Do You Need a Business Credit Card?

If you're a business owner whose company has been around for more than a month or two, you've probably at least considered how a business credit card would impact your organization. Perhaps you run your business from the comfy surroundings of your home, or you may have an office and employ several workers. Whatever your circumstance, the fact is that if you're a small operation a business credit card can actually take your company to "the next level", literally as well as figuratively.

Having a credit card in the name of your business lends a kind of perceived legitimacy to your organization, not only in the eyes of those you do business with, but also even in your own mind. People feel that they're dealing with a firm that has a measure of credibility as well as credit. And that credit card could actually be the final step in your own mental transition from that of 'just having a hobby' to 'owning a full-fledged business'. Moreover, in addition to allowing you to keep personal and business expenditures separate, the credit card will also help to establish a good credit history for your business, which can be invaluable to your organization's future growth and expansion.

In the business world, the reality is that the only companies that don't have at least one business credit card account are start-up or extremely small operations. Organizations with more than just a few employees will almost certainly have credit cards. The owners of these companies don't look at their business cards as luxuries; indeed, they're considered a necessity for their day-to-day operations. Their credit cards offer advantages that can make things run much more smoothly.

For instance, a business credit card can dramatically simplify a company's bookkeeping efforts. By using the card for large supply orders, business subscription services, and even routine office necessities, monthly expenditures can easily be kept track of and analyzed on the monthly statement. Also, the business owner can issue company credit cards with monthly spending limits to other key employees (such as office- or supply managers). Thus, if something is needed for the company, the key personnel needn't have run to the owner for approval of the purchase; this allows for greater efficiency throughout the organization. And, of course, individual card purchases can also be tracked for auditing purposes.

Using business credit cards can improve a company's cash flow as well, allowing all expenditures for the month to be paid for at one time at the end of the billing cycle. This can help to stretch the organization's dollars even further, by giving it the use of interest-free money during the card's grace period. As long as the full bill is paid each month, the company incurs no interest charges. Additionally, many cards also offer their users perks and benefits, such as flying miles, purchase protection, or a myriad of other features. The savvy business owner will choose the particular credit card that offers the perks that will benefit his or her company the most, thus maximizing its financial advantage.

Business credit cards are not just for large organizations. No matter what your operation's size, business credit and business credit cards are very important to your company's overall financial picture. In truth, most companies can't or won't operate without them. Just as with personal credit cards, they must be used with wisdom and care; the advantages that they offer your company, however, simply can't be ignored. Do you need a business credit card? The answer is a resounding yes!

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