The uses of having a business credit card

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cards for Business » The uses of having a business credit card

The uses of having a business credit card

The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!