If you are considering a small startup, you are certainly thinking about business finances and how a business credit card might help you in that regard. In this blog, we will be covering several different ways that a business credit card can benefit your small business.
⦁ Building credit score:
Remember that a solid business credit history is essential if you plan to apply for funding in the near or distant future.
Every time you use your business credit card for transactions and make timely payments, you are boosting your business credit score. The better this score, the easier it will be for you to obtain business financing from other options, such as through a small business loan.
⦁ Bootstrapping your startup:
Not all startups will need massive injections of cash. In such a case, you can use your current income, savings, and business credit card funding to bootstrap your business.
A recent survey found that, unsurprisingly, the majority of entrepreneurs make use of loans, savings, and business or personal credit cards to fund their business.
⦁ Earning rewards:
Membership rewards come in the form of points that can then be redeemed for flights, lodgings, or other travel benefits. You can also enjoy entertainment packages, travel experiences, and gift certificates. If you are looking to cut down on business expenses, you can use your credit card points for purchasing office supplies and other equipment. Some business credit cards even offer cash rebates that generally range from 1-3% of your purchases.
⦁ Fraud protection:
Regular cash purchases, business checks, or debit cards provide relatively little fraud protection. A business credit card, on the other hand, will help you keep your business assets and credit ratings secure. Make sure that you get a business credit card that does not hold you liable in case of any fraudulent activity, and takes proactive action to stop any fraud dead in its tracks.
Final Word:
Make sure that you are dedicating sufficient time to comparing various business cards before deciding on one. Remember that wise usage of a business credit card will allow you and your business to enjoy considerable benefits.
