What Can a Business Credit Card Do for You?

business card

posted on Sunday, November 7, 2021 in Financial Tips

Having a small business requires you to make necessary purchases for the company. A low-interest business credit card ready at hand can simplify the purchasing process. It offers hassle-free payments for big purchases like office furniture and materials. It may seem similar to a regular personal credit card, but a business one works differently. Here are some things you need to know before getting one.

What Is a Business Credit Card?

Business credit cards are designed for business owners and generally used for official business expenses, such as purchasing necessary supplies and other items required to operate a company. Using a dedicated card for your business expenses separates your company’s finances from your personal ones.  This separation is required for tax purposes and proper documentation.

Having a credit card for your company also helps establish your business’ credit rating. When lenders and financial institutions see that your company has a good credit score, it’ll be easier for your business to apply for a loan. There is also a possibility for you to get a lower interest rate. Plus, a good credit history lets you grow your business faster.

How To Qualify for a Business Credit Card

There are several types of business credit cards available, and most business owners can already qualify for one. Qualifiers can be sole proprietors, freelancers, limited liability companies, small and large business owners, and corporations. The company doesn’t even have to be registered or incorporated. As long as the owner has an excellent credit score and can separate business expenses from personal ones, they can apply. Having a physical storefront or employees is not necessary as well. 

However, some financial institutions and credit card issuers do not allow the application of businesses that operate in specific industries. It’s better for you to do your own research first before you apply for a card.

A low-interest business credit card can help you in many ways when it comes to your purchases. If you are ready to apply for a credit card for your business, contact Community 1st Credit Union. Schedule an appointment and talk to one of our C1st representatives today.