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Why You Should Consider a Business Credit Card for Financing Your Small Business

November 30, 2015

As a small business owner, you may have realized that it is much faster and easier to open a credit card account than it is to secure a line of credit from a bank. By using a business credit card you can not only build and establish business credit, but also keep business and personal finances separate. Business credit cards can assist small business owners in record-keeping and conserving cash flow. Additionally, they may offer one or more of the following perks:

0% Introductory APRs: You can save hundreds of dollars in interest payments through this business card perk, especially if you pay down your balance within the introductory period. These introductory periods can last a year and longer. Introductory APRs can prove to be extremely beneficial for start-up expenses and larger business purchases. Even if you have the cash on-hand, it’s helpful to be able to pay it off without tying up your liquid capital.


Sign-up Bonuses: These consist of one-time promotions to attract new cardholders, and can grant users anything from hundreds of dollars to free airline flights or hotel stays – provided that specific (typically very reasonable) spending requirements are met within a few months of opening the account.

Employee Credit Cards: Business credit cards may charge an additional fee for employee credit cards or offer them for free. Some of these cards allow the business owner to set individual spending limits for employees in addition to the ability to help rack up rewards.

Office Supply Purchases Rewards: Many business credit cards offer as much as 5% cash back on office supplies, Internet access, cell-phone service and other necessary business expenses. Some cards even award points that can be later redeemed for cash or retailer gift cards.

Small Business Tools: Additional perks offered with some business credit cards include access to trained experts to assist small business owners, access to online business communities, quarterly reports, year-end summaries, and the ability to download records to various bookkeeping and accounting software programs.

Tax Assistance: Business credit cards may help you manage and download reports for accounting and filing taxes. Through apps linked with business credit cards, you can even itemize and organize your tax deductible business purchases and receipts.

Though business credit cards come with substantial benefits, you must ensure that you don’t get carried away. A business credit card is worthwhile only if it fits the style in which you run your business. For example, if you don’t travel much, opting for a card which awards miles and travel points on purchases makes no sense. Additionally, don’t consider cards just for their great sign-up bonus – make sure that you check other aspects such as APR and annual fees as well. While applying for a card, remember that the best rewards and terms go to those with the best credit, so ensure that your credit is in great shape.

If you are a small business owner looking for funds to finance your business in the range of $50,000 to $250,000, our team at Fund&Grow may be able to help. We have helped businesses all over the country receive 0% cash financing. Our team can not only help you get unsecured business credit quickly and easily, but can do so without proof of income. To know more about our services for small business owners, call us today by phone at (800) 996-0270 or via email.


Ari Page Ari Page is the CEO of Fund&Grow. He resides in Spring Hill, Florida with his wife and two children.

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