Making smart investment choices for your business future is key for any business owner to strive in these economic times. One of the many types of investments that can be beneficial to any small or large business is the use of a Business Credit card.

Whether you are a start-up or an established company that has been running for years, this possibility can have a positive impact on the overall company as well as its growth, and we tell you why in this article that highlights whether your business could benefit from having one and why you should consider it.
What is a Business Credit Card?

Intended for use by any business, a business credit card is similar to the idea of a personal credit card, however, the options available and advantages are much more. For one, they can help build a business's credit profile. These are specifically designed for use in most businesses and can be an excellent way to keep all transactions in one place.

Not to mention, they come with additional special incentives that many businesses can take advantage of. When a company is in its growth stage, it can help boost cash flows and expenses. We look at some of the benefits of having a business credit card below.

Managing Business Expenses: Having a separate business credit card can help keep things separately, away from any personal expenses. This is advantageous especially when it comes to tax and bookkeeping purposes.

Not many organizations deal with paper checks anymore. It is too much of a hassle. Rather than having to deal with this, you can handle all transactions through one card. You can also schedule bill payments automatically and do not need to worry about missing any payment deadlines.

Tracking Business Expenses: One of the reasons why many companies have their own credit card is to track in-comings and out-goings of purchases and payments. Transactions such as bill payments, supplier payments, expenses related to running the business and more, can all be tracked.

Sometimes costs tend to creep up without you knowing, and if you have one place that can record everything it makes your life (as well as your accountant's life) easier and organized. You can make sure all purchases and payments stay in line with your budget.

Take Advantage of Tax Deductions: Amongst the many reasons for having a business credit card is for tax deduction purposes. Take for instance making charitable business donations. Sole proprietors, for example, have inseparable business transactions from their ones.

For instance, if you own a ‘C-corporation’; where, as an owner you are taxed separately from your business, you can deduct the costs of these charitable donations and tax-deductible donations can help the overall business because people often like to deal with these kinds of organizations – it shows your doing good for society, which further enhances your business reputation and mission.

Cover Your Bills When Money Is Tight: Another helpful offering of these cards is flexible borrowing. For instance, if you are short of funds and need to make payments such as paying supplier bills, a credit card allows you to help cover your bills now and pay for it later once you have the funds.

As long as you pay the amount owed on the card by the due date, you will not incur any borrowing interest, and some card providers offer a 0% introductory interest period for up to a year which can be very helpful. In other words, you could use it to pay for bills and won't stand to pay any interest for it. Especially for new businesses, this can be highly advantageous.

To Sum Up

Not only does using a business credit card separate personal expenses from your business expense, but when used responsibly, you can also receive rewards from their rewards programs, that can be highly beneficial to the business. Managing cash flow is one of the fundamental tasks of any successful business.

Examples of rewards include a certain % of cashback, saving a certain amount after spending a limit, savings on tax returns, first-year free interest rate (0%), free credit reports, gift cards, air miles, some suppliers also offer discounted prices on their goods and services, for example, AA roadside assistance, or Microsoft products and more.
Link: http://bestsmallbusinesscreditcard.com/
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Author's Bio: 

iDrory office