A business credit card is basically a credit card which is issued to a company or an organisation. The company can be a large multinational company, limited company, or a sole trader etc. A person who is string a business start using their personal credit cards for any expenses which is to be made therefore business credit cards are bee allotted to reduce the personal expenditure of the business. Business credit cards are strictly used for business purpose only. Credits card can be used in many aspects like giving staff expenditures, helps in cash flow or help in finance issues temporarily like finance clap. Small business owners take credits cards for their growth in business.

Business credits cards works as in accordance credit cards, wherein the borrowers will be given a particular time limit or say credit limit and the balance later can be paid on monthly basis. Similarly to personal credit cards, business credit cards thrives you with a good option of interest rate and many other benefits like interest – free periods, reward points or cash back.


There are various benefits and importance of having a business credit card be it in a small business or in a large one, let’s highlight some of them:

  1. Business earning is 10 to 100 times greater than personal earnings. Thus business requires larger credit capacity. Business credit cards helps to finance strictly on business expenses and do not have to pay from your personal credit.
  2. A business credit card helps you to increase the company’s value. Business card helps the business to overcome assets and thus is one of the powerful advantages for any buyer or investor.
  3. It helps you expand your available credit in the business by making separate card for business and for personal. Each will have its own credit limits and gives you the potential credit in overall business.
  4. Through business cards you can create your loan history in a good position. Small business often is turned down for loans but when you have business credit card you can establish a better loan history to apply for a loan.
  5. A lot of time saving from record keeping of all the expenses, purchases and buying can be down due to business credit cards. It helps you to manage your expenses and keep you in budget.
  6. You can always control on employees spending in your business. A business credit card helps to set limits on employees.
  7. The rewards you get from business credits cards are strictly for business related use and included discounts on business travels and also for shopping at business supply outlets.

A business credits card possesses a lot of advantages and is not as scary as the world puts in, but you should realize the later consequences and make wise choices on spending your credit and the credit strictly used for business purpose. Through effective planning and control you can eliminate risks in future for the benefit of your business from this little plastic money.