Establishing and growing a business is definitely not for the faint of heart. Once you’ve identified the need you want to fulfill, or problem you want to solve, it takes a lot of time, mental focus and, you guessed it, money, to turn your idea into a reality. You can control your time and focus, but how can you ensure you have quick access to cash when you need it?
Enter the business credit card
One way a business can gain access to needed cash is to open a business credit card account. It’s convenient and useful. Not only can a business credit card increase your overall buying power, it can also help grow your business and streamline your bookkeeping in a number of ways.
In this post, we’ll look at seven ways that a business credit card can help you take your business to the next level.
1. Separate business and personal spending
Having a business credit card makes it easier to keep business and personal expenses separate.
This is important for a number of reasons. To start, keeping your expenses in separate silos can help you simplify your tax preparation and compliance, build business credibility and protect your personal assets.
2. Improve your cash flow management
By providing a short-term financing option, business credit cards enable your business to make purchases and manage cash flow more effectively by deferring payment until the end of each billing cycle.
3. Buy what you need when you need it
A business credit card can help you grow your business by giving you increased buying power so you can purchase essential items, such as inventory and supplies, that might cost more than the cash you have on hand.
4. Manage and track your expenses better
When you choose a business credit card that includes detailed expense tracking tools, you’ll be able to monitor and categorize expenses, simplifying your accounting and budgeting in the process.
5. Enjoy rewards points, miles and cash back
Just like personal credit cards, many business credit cards offer rewards programs that include cash back, miles or reward points. You can take these rewards benefits and reinvest them in your business, helping to reduce your costs and funding future growth.
6. Build business credit
As a business owner, you now have two credit reports to monitor and manage, your personal report and, now, your business report. Just as with your personal report, using your business credit responsibly, including establishing a record of on-time payments, can improve your credit score and help you secure larger loans and better financing terms in the future.
7. Control and monitor employee spending
For many businesses, the ability to give employees access to a company credit card allows them to make important purchases. A business credit card enables business owners to set spending limits and to monitor card use in order to reduce misuse by employees.
CB&T has business credit cards to fit every need.
Compare our choices and apply online or visit your local branch to learn more.