How to Make the Most of Business Credit Cards

When used properly, business credit cards can be a powerful financial and strategic tool for small-business owners. In addition to providing a cash infusion or capital for emergency purchases, using a business or commercial credit card can be a sound business strategy.

Business owners often rely on credit cards to deal with lumpy cash flows or to facilitate growth, expansion and acquisitions. Some business card issuers offer various payment options to help small- and midsize enterprises (SMEs) meet these specific needs.

Credit cards can also be a tool for record-keeping. Credit card statements can help SMEs monitor spending by category and assess the financial health of the business. Year-end statements can be invaluable for tax
preparation.

It is important to keep business and personal expenses separate. Never use a business credit card for personal expenses, and avoid accumulating debt on a business credit card. There are other benefits to using business credit cards:
•    Designated spending limits give business owners control over employee expenditures.
•    Business-friendly incentives, such as discounts on supplies, travel or business services, can add up for SMEs.
•    Reward benefits like frequent flier miles, restaurant and hotel points, merchandise rewards, or cash back help small businesses leverage spending.
•    Because there is no liability for unauthorized charges, business credit card owners are protected against fraud.