Businesses need money, small businesses more so than developed ones. Without money, they cannot purchase important equipment and supplies, or pay their employees. A small business that lacks a credit card specifically for use in the company can find itself running short. This can be devastating in the early game, when they need to remain consistent. An inconsistent company cannot develop a good client base and thus will have to struggle with a wounded brand name. Overly-careful businessmen may find it risky to open a credit card just for the business. Wiser businessmen will realize that the benefits far outweigh the risks.


Any annual fees incurred by having a company credit card are nominal, especially compared to the monetary power it gives the business. The following are only a few of the advantages that a small business can claim from having a dedicated credit card.


  • Improved Credit Limits: The average business credit card has a limit of $50,000, perhaps more. This allows company owners to potentially buy in bulk, which can save them money in the long run. A high credit limit can also give a company enough monetary breathing room, in case of accidents or unforeseen expenditures. Personal credit cards have lower limits, stifling their effectiveness as a business tool.
  • Standalone Credit: Personal credit ratings can severely hamper a company’s buying power. Business credit cards allow the company to stand on their own merits, without being overshadowed by the owner’s credit history. It also makes it easier to file taxes. It is also easy to boost business credit ratings, as long as the company makes sure to only deal with trustworthy suppliers. Their reports can easily make the company a trusted name.
  • Controlled Spending: A company credit card allows a business to issue additional cards for employee use. Business credit cards can allow employers to easy control the amount of spending done by employees. This reduces the need to manage individual expense accounts, leaving the owner free to handle other matters. This can also stifle any attempts to defraud the company and makes it easy to monitor how the company’s money is being spent. Limits can also make sure that the company follows the budget without having to micromanage every single transaction.
  • Credit Related Perks: There are a number of rewards programs limited to businesses. These perks can include important discounts such as for travel and for specific suppliers or outlets. This essentially saves money that can be used on other things, such as more supplies and equipment.
  • Increases Legitimacy: Personal credits cards are just that – for personal use. Even a small home-business can find itself with more customers simply because they use a business credit card. It shows that it is a real endeavour, one that the owner is taking seriously. When clients and suppliers see that, they will take the business a little more seriously as well. This can drastically improve business relations with those groups.
  • Allows for Separation of Business and Personal Accounts: Mixing personal transactions with business transactions can quickly become a messy situation, one that can easily result in tragic mismanagement of resources. Many may not realize it, but managing money is an incredibly difficult endeavor, one that many people struggle with on a personal level. Combining personal and business accounts is a recipe for disaster. A business-dedicated credit card will make things easier to manage, and as stated, increase the legitimacy of the business in the eyes of tax agents and clients.
  • Easier Payments: Credit cards, both personal and business, can make it easier to schedule payments for supplies that need to be replenished regularly. Micro-management can get tedious and extremely difficult. A business credit card can allow a manager or owner to keep on top of important expenditures without having to spend too much time on them. This leaves them free to expand the business in other areas, such as planning future growth and getting to know potential clients.


A small business needs every advantage it can get. Competition can get fierce and those who cannot keep up are inevitably left in the dust. A business credit card can give a small business the edge it needs to keep up. It is an unquestionably powerful tool. While it can be prone to mismanagement, the same can be said of any tool a business can use. Used responsibly, it can allow a company to grow properly and to seize any opportunities that it may come across.


Typically, two or three business credit cards are enough to supply a business with the money it needs to grow. Similar to a personal credit rating, a business with numerous credit cards can find itself with a negative rating. Any business serious about their growth and future should strongly consider getting a business credit card.