Do Businesses Benefit From Using Business Credit Cards?

Easy access to funding is one of the keys to growing a successful new startup or small business, and a business credit card can help you improve your credit score necessary in gaining funds.

Conventional consumer credit cards may appear to offer similar benefits to their business-oriented needs at first glance. Cashback, redeemable points, and airline miles are common rewards, and some cards offer bonus points for purchases in specific categories like groceries, gas stations, and online shopping. Business credit cards take this a step further by offering categories better suited to business needs, such as discounts on digital marketing services and online advertising, office supplies, loyalty points, cashbacks, travel points and entertainment.

If you conduct your business in Singapore, you can catch insightful articles like these on the Singapore finance blog to learn more about the rules and regulations that apply to business credit cards there.

It is exceptionally convenient and increases your company’s purchasing power while building your credit history. In addition, a small business credit card gives owners access to a revolving line of credit that can be used for various business purchases.

A small business credit card, like a personal credit card, charges interest if the balance is not paid in full at the end of each billing cycle. Small business owners can apply for a credit card through their bank or directly with a credit card issuing company. Using a business credit card can benefit your business in various ways.

Who Can Get a Business Credit Card?

Business owners should keep their business and personal account separate. Therefore, they must separate their personal and business expenses and should get a business credit card.  A physical location or a large number of employees are not required, but proof of income may be required to obtain a business credit card.

There are four different types of business structures:



Sole proprietorship

Company with limited liability (LLC)

Regardless of its structure, anyone who runs a business can apply for a business credit card. Furthermore, you do not need an existing business credit history to apply. However, credit card companies will scrutinize your personal credit history and credit scores.

Let’s take a gander at how a business credit card can benefit your business:

  • Cash flow is vital and should be a priority regardless of the nature or size of your business. You can conveniently open a line of credit for your business and increase cash flow with a business credit card. In addition, you can buy supplies, materials, and equipment and enjoy a flexible repayment period.
  • You can track your spending more efficiently. A business credit card lets you separate expenses into personal and business categories. Your personal and business expenses are kept separate, allowing you to easily track your business expenses.
  • You get reward points. Along with all the other advantages, using a credit card allows you to receive attractive benefits every time you make a transaction. Because the number of transactions and the amount spent in businesses is generally higher, the opportunity to earn reward points is also greater. Most other payment methods may not help you earn reward points for making business payments as much as a business credit card.


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