Using Business Credit Cards to Help Start a Small Business | CreditShout

Using Business Credit Cards to Help Start a Small Business

By Kevin / December 30, 2008
Using Business Credit Cards to Help Start a Small Business


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Business credit cards are excellent for separating business and personal expenses, however, more and more start up businesses are looking to the business credit card for assistance in beginning a new venture.

Before credit cards were readily available and accepted worldwide, business owners only had an option of bank financing or private angel investors. Today, many entrepreneurs are applying for business credit cards as a means to starting a new career in owning their own business.

Obtaining a Business Loan Can Be a Lengthy Process

Because of the time constraint of getting a bank loan for start-up capital, some entrepreneurs are turning to the use of business credit cards for funding purposes. It is expediency that these younger generations of tycoons are looking for when starting their new business. Most new business owners do not want to wait for the financing approval. The new ventures are using the business credit card to finance everything from the paper and pens to the desk and chair for their new company.

Business loans may still be needed for future financing or if the amount of credit that is available on the credit card would not be sufficient. Small business entrepreneurs are anxious to get their business going though and have a tough time waiting for business loan financing to come through.

Separating Business from Personal Accounts

Another good reason that these entrepreneurs are opting for a business credit card is for the simple fact that when they receive their statement, it will be itemized and easier to track expenses. This is a good way to ensure your business finances won’t get mixed in with the personal ones. Having separate accounts for individual spending is wise when keeping records for business taxes. It will save time not having to manually separate the expenses and will make filling out the profit and loss form much easier, too.

A Few Good Business Credit Cards to Consider:

Numerous Perks for Small Business Owners

Even if the business credit card will not be used for start up funds, most of them are worth using because of all of the business advantages that they hold. Business credit cards have bonus points and rewards available to card holders. They also will sometimes have frequent flyer miles as rewards and that is great when the business owner needs to travel for business. Emergency check-in, discounted car rental and travel insurance are a couple of other perks to make business credit cards a good thing for entrepreneurs to carry.

One of the best reasons for start-ups to finance office supplies and equipment with a business credit card is that most of the business reward credit cards pay cash back for office purchases. This will include all purchases made at office supply stores for things like computers, fax machines, copiers and paper supplies. Sometimes these business credit cards will have an introductory rate of zero percent and that will contribute to the bottom line in sales figures for the business; paying less interest. Care should be taken to pay monthly payments on time and to stay under their credit limit, however, or they will take the risk of increasing the amount that is paid.

Additional Reading:

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