6. Create a Business Credit Score
While a solid personal credit score may be required to obtain a business credit card in the first place, your spending and payment habits on the business credit card will have a direct impact on your company’s credit rating.
If you want to apply for business loans or new lines of credit in the future, banks will consider your business credit score when considering the terms they give. For example, the higher your company credit score and the longer your current line of credit has been in operation, the better the rate and payback terms you’ll receive.
Furthermore, while you may want to acquire a range of business credit cards, it is better if you simply apply for cards relevant to your specific position and goals. This is because similar to personal credit cards, having too many credit card queries may reflect negatively on your company’s credit report.
7. Employee Spending Control
If your firm has employees who travel, buy inventory or supplies, or have other obligations requiring them to spend company money, a business credit card can help you track what they buy and how much they spend.
You might also impose spending limits on staff cardholders based on the amount of credit available. Many credit card companies will provide free (no-annual-fee) business credit cards to a company’s workers.
8. Business Advantages
If you have a business credit card with rewards, the benefits may be business-related, such as savings on company travel, shipping, and supplies.
Depending on your company’s demands, you may even be able to obtain a credit card that pays incentives on advertising purchases, which might mean more visibility — and, eventually, more consumers — for your firm.
The Ink Business Preferred® Credit Card is a rewards card that we use to cover a large portion of our advertising costs for this site because it earns 3 Ultimate Rewards points for every $1 spent on advertising purchases through social networking sites and search engines.
