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Managing Your Business

The 7 Advantages of a Small Business Credit Card

The 7 Advantages of a Small Business Credit Card | Swyft Filings

Starting a small business is both a rewarding and challenging experience. For most business owners, a significant source of stress (especially initially) can be balancing monthly expenses while making the business profitable at the same time. It’s dangerous to rely solely on credit cards. Still, responsible use of a small business credit card can lead to many valuable benefits for your company.

There are seven distinct advantages that a small business credit card offers that make managing your business expenses easier:

  1. Obtain Credit Faster
  2. Build Your Credit History
  3. Streamline Your Accounting Process
  4. Earn Valuable Rewards
  5. Dispute Charges
  6. Access Account Management Tools
  7. Separate Personal and Business Finances

Obtain Credit Faster

Not every business owner is lucky enough to obtain capital to fund their company for a year or longer. If you’re not a part of those lucky few, having access to a line of credit while you establish your business in the market can help.

Small business loans usually offer a lower interest rate, but the application and approval process can be complicated and lengthy. Banks may be less inclined to provide you with a loan until your business has a strong credit history and a proven record of success.

On the other hand, applying and being approved for a business credit card is relatively straightforward. There’s no pressure for your business to blow up the competition because credit companies typically only look at the owner’s personal credit score as a basis for setting up an account.

Unlike a small business loan, you only pay interest when you use the card. You can use it for monthly purchases (and accrue reward points) or save it for a rainy day.

Build Your Credit History

When first formed, your business doesn’t have a credit history. Like your personal credit reputation, it’s essential to establish a positive credit history for your business.

Aside from someday being approved for a business loan, your company’s credit rating can also make or break potential relationships with future vendors and clients. A small business credit card is one of the easiest ways to lay a good credit foundation.

Streamline Your Accounting Process

Having your business purchases on one credit card can streamline your monthly accounting processes. The ready-made monthly statement from the credit card company clearly outlines your business purchases. 

You or your bookkeeper may also be able to better identify business-related and tax-deductible purchases without the hassle of combing through a mountain of different transaction methods.

Earn Valuable Rewards

Many prominent vendors, such as office supply stores, partner with credit card companies to offer price breaks and cashback to customers who shop with them using their credit cards. It’s a win-win. Those companies increase their business, and you benefit from the rewards points of the credit card AND the price break with the vendor. 

Some credit card companies offer cashback, airline points, or other great incentives. If you’re smart with your business credit card and pay off your balance each month, you can come out ahead by racking up these points.

Dispute Charges 

One benefit of using your business credit card for routine business purchases is access to dispute resolution protection.

Suppose you ordered six cases of copy paper for the office, and one case arrived with extensive water damage. If the vendor doesn’t offer a refund, you can contact the credit card company and dispute the charge. The card company may not replace your copy paper, but this action can force your vendor to resolve the issue. (Your next step would be to find a new vendor.)

Access Account Management Tools

Once you’ve signed up for a business credit card, most credit card companies offer access to online tools to help manage your finances. It’s in the company’s best interest for you to be on top of your expenses because that ensures they get their money back. 

They sometimes grant the business owner tools like Excel or Quickbooks for yearly summaries and tracking to achieve that goal. This is a great benefit to prepare your business for tax season. 

Some credit card companies also use their tools to provide you with reports and tracking, so you have the information at your fingertips without putting in the grunt work. 

Separate Personal and Business Finances

A common struggle for small business owners is creating a work-life balance. One of the biggest benefits of owning a business is making your own hours and putting so much of yourself and your time into something you love. Certain boundaries can help keep your personal life and business life separate. Your finances are one of them. 

A business credit card allows you to keep any business-related expenses in one area and your many other living expenses in another. You can avoid confusion and stress by keeping your two lines of finances separate.


Even with the streamlined process that comes with a business credit card, having a professional accounting service like 1-800-Accountants handle your books will give you back even more time and cut back on the stress you already have to handle.

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