5 Reasons Your Small Business Needs a Business Credit Card
Are you one of those entrepreneurs who use their personal Credit Card for business expenses? It might have been the only option at the moment when you launched your small business. However, as your business grows and your needs change, it’s better to upgrade to a suitable Business Credit Card that meets your growing needs in the best possible way.
Business Credit Cards come with some appealing advantages for owners of small businesses. Here are some signs when you should opt for a Business Credit Card:
1. When You Are Hiring
Planning to get fresh talent on board who could take your small business to new heights of success? If those new employees are going to make business purchases, you will require a Business Credit Card. Many Credit Card issuers offer unlimited employee cards for free on purchasing a single business account. Some cards also let you set a customized spending limit for each employee. You can see activities of all employees on the consolidated monthly statement. By doing so, you can manage your personal and business cards easily. Also, you won’t be comfortable sharing your personal card details at workplace right?
2. When Rewards on Your Personal Credit Card Aren’t Much Valuable
Another reason to Upgrade to a Business Credit Card is that they often come with rewards tailored to the business needs. You can earn rewards on some common business expenses such as paying phone and internet bills, office supplies, gas, dining and other such services. If you feel that your personal Credit Card doesn’t provide enough rewards for business spending, consider upgrading and enjoy valuable rewards.
3. When You Are Maxing Out on the Limit of Your Personal Card
Are you maxing out on your personal Credit Card limit every month just to meet monthly business expenses? Using your Credit Card balance too much can damage your credit. The ideal credit utilization rate is 30% on an average. Get a business card for business expenses as it often comes with a higher spending limit, giving you some relief.
4. When You Are Incorporating
Is your business in the process of incorporation? It can prove to be a wise financial decision as it helps in protecting your personal finances and assets from business losses and debts. If you’re planning to incorporate your business, get a business Credit Card simultaneously to separate your personal finances from business finances completely.
5. When You Want to Build Your Business Credit
Do you have an impressive personal credit score? Great! But, what about your business? Businesses too have credit report and score which may help you secure Business Loans at Low-Interest Rates. Lenders and creditors often look into your business credit score for determining your Business Loan eligibility. Start building and maintaining your business credit from today by applying for a business Credit Card.
Aren’t the reasons mentioned above exciting enough to get your own Business Credit Card? Visit mymoneymantra, a one-stop solution for all your financial needs for attractive Credit Card offers or call us toll-free at 18001034004 for more information.