There is a question arises in the mind of people that why people are in need of credit cards. Clearly, people may face any tough situation in life that they have to borrow money from anyone. Sometime they don’t find people to provide funds to them, here the banks play role of lender of last resort.
The small business credit cards are there to help you out when your business is in need of money and funds. It has been noticed that a lot of business owner will not try to apply for the business credit card but instead they use they personal credit card to provide funds to the (small) business.
There are a lot of benefits associated with the use of small business credit cards.
- First and the most important thing is high credit line.
In the personal credit card from the bank you can’t get maximum credit to meet the needs of your business.
In business credit cards you can get maximum credit to finance your business. The business credit card holder will get amount of $50,000 and above if the credit rating is good, if the rating is high you will get high line credit.
Credit history of business is another thing to get small business credit cards. The credit card issuing bank will give business rating or ask for business report of client, these agencies will provide accurate business report to the issuer of credit, if you have business credit card your credit rating will be tracked as business credit card otherwise it will come under personal credit card.
Separate finance is another advantage of having small business credit card. By opening your business account you can maintain your personal and business account effectively. You can counter the issues in business dealing when using credit card of business.
Moreover it is very easy to track the spending of the business if you use your business credit card for transactions. It will be easier for business to pay the utility bills and payments through card rather than giving cash by hand. You can also be entitled to get reward of using business credit card.
Most of the banks have started the scheme to reward their customers with some points if they regularly use the credit card for business use. If you apply for business credit card the logo and name of business is written on card that will promote your business image.