A business credit card or business credit account is one which is directly in the name of the business or company. As you must know, an incorporated company is a legal entity which pays taxes and is treated like any other citizen of the country. Hence a business can have its own credit account.
A credit account in the name of the business is very valuable when one starts out. It is in the beginning that one will want the maximum financing at the least interest. Hence it pays to build your credit history as fast as possible. When you open a business credit account, you can have a number of cards. You can give out the corporate cards to the top management which is in charge of deals or expenditures that are directly related to the business. Start using these credit accounts to make purchases and pay them back regularly. This will help you build on your credit score. And it also gives your company a financial history or track record.
Another advantage of having a business credit account is that it gives legitimacy to your company. A lot of people have problems being taken seriously while they are small fry in the corporate world. Having a business credit card will open doors to you at places which would otherwise have been closed to you. But having all the licenses and permits for your business in the first place is the very first step to legitimacy and you cannot afford to overlook this.
Also it helps to have a business credit card because you can keep track of the expenses done on behalf of the business. A lot of people spend for their business on their personal cards and then have problems sorting out the two. When you make the annual rate of return calculations, you will need to find out what your expenses were and also what profits you reaped in. for this, you will need a separate account in order to get a detailed explanation of the same.
The business credit account will also help you keep a tab on your employees. Rather than having them give you bills in the form of paper receipts, you will receive a detailed bank statement every month listing what exactly they have spent on with the business credit card.