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7 Reasons You Should Apply For a Business Credit Card Today

By: Becky Wilson

 

Business Credit Cards vs Consumer Credit Cards

Any business, big or small, can be impacted by a capital shortage. This is when a business doesn’t have enough money to cover its expenses. This can happen for various reasons, such as unexpected costs or slow sales. It can be difficult to pay employees, rent, and other bills when this happens. This can lead to the business having to make cuts, impacting operations.

A business credit card can be helpful in these situations. It can provide the business with a line of credit that can be used to cover expenses. This can help to keep the business afloat until sales pick up or other funding is secured.

But the benefits of a business credit card are many, and you must know these advantages as a business owner. Read on to discover the benefits.

Build Your Business’ Credit Score

Paying off the balance on time and in full each month demonstrates to potential lenders that the business is responsible and capable of repaying debts. Furthermore, using the credit card regularly but keeping the balance low shows that the business is using credit wisely and not maxing out its available credit line. Having a long history of timely payments can also boost a business’s credit score.

Rewards and Cash Back

Business credit cards offer rewards, such as cashback or points. These rewards can be used to cover business expenses or for other purposes. The best business credit cards will offer generous rewards that can be used to offset the cost of running the business. Cashback rewards can be particularly useful for businesses. This is because they directly reduce expenses, which can help improve the bottom line.

Purchase Protection

Many business credit cards offer purchase protection. This means that if an item purchased with the card is damaged or stolen, the card issuer will reimburse the cost of the item. This can provide peace of mind and protection against unexpected costs.

Extended Warranty

An extended warranty on a business credit card extends the manufacturer’s warranty on items purchased with the card. This can be a valuable perk, as it can save the business money if an item needs to be repaired or replaced.

Employee Cards

Some business credit cards offer employee cards. These are credit cards that can be used by employees for business expenses. The charges will appear on the business’s credit card statement, making it easy to track and manage business expenses. Employee cards can be a valuable tool for managing expenses. They can also help businesses build a positive credit history, as long as the employees use the cards responsibly.

Fraud Protection

Many business credit cards cover frauds. This means that if the card is lost or stolen, the business will not be responsible for any unauthorized charges. This can provide peace of mind and protection against loss.

Easy Access

One of the main advantages of a business credit card is that it can be easier to qualify for than a small business loan. This is because the credit card issuer will consider the business’s credit history when making a decision. A business credit card can also be a good option for businesses that don’t have collateral to offer as security for a loan. Working with a local or regional bank is also a good idea when you’re a small business, as it helps you build solid relationships within your own community. You can apply for a business loan or a credit card at Community Bank and other similar regional banks.

Final Word

No matter the size of your business, a business credit card can be a valuable tool. It can help you manage expenses and build your business’s credit history. We are sure the above benefits will motivate you to apply for one.

Published: June 7, 2022
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Becky Wilson

Becky Wilson is a writing enthusiast with a deep interest in topics related to Financial Institutions. Spending a good amount of time researching around the same, whenever possible Becky also likes sharing the useful information with people who may find it helpful.

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