10 Reasons for Business Owners To Get a Business Credit Card

Business Credit Card

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Owning a business can entail a myriad of financial transactions — many of which may require more cash than you have on hand. For that and other reasons, it can be a wise move to apply for a business credit card.

In this article, we’ll discuss 10 reasons why using a business credit card could be favorable for your company.

Why Get a Business Credit Card?

There are several reasons to get a business credit card. And the good news is that you typically don’t need an incorporated business or brick-and-mortar store to apply for one! While requirements vary by each credit card company, but you may only be required to provide a Social Security number in order to qualify.

Some of the primary benefits of having a company card can include:

1. Access to Cash Flow and Financial Flexibility

Ample cash flow is typically a key priority for business owners, regardless of the size of the company. But having a business credit card can make it much more convenient to keep your expenses in check.

Also, because business credit cards can be much easier to obtain than a traditional loan or line of credit, they can provide a simple way to purchase the equipment, supplies, or inventory that you need.

In many ways, business credit cards can provide you with more advantages over personal credit cards. For example, business cards will oftentimes not only have higher spending limits than personal cards, but these higher limits can make it much easier to make large company-related purchases that you may not be able to make using a personal credit card.

2. Separation of Personal and Business Expenses

If you own a small company or are a solopreneur, having a business credit card can make it easy for you to separate your personal and business expenses.

Not only can this save you time on a monthly basis, but having 2 separate statements can also make it convenient for record-keeping and completing your annual tax return.

Some business credit cards will even offer online tools that can assist you with tracking your expenses — much easier than saving a year’s worth of invoices and receipts in a physical file! They often have special export functions that make it simple to transfer relevant information to QuickBooks or other account software.

On top of that, being able to access your business’s spending records at a moment’s notice can also help to speed up financial transactions, too, and could even allow you to take advantage of opportunities — such as purchasing property and/or inventory — more quickly.

Hot Tip: Speaking of keeping expenses separate, you should also keep your business revenue separate by opening a business checking account — you could even get a business checking and business credit card from the same bank. For example, Chase offers great business credit cards and business checking accounts.

3. Points, Cash-Back, or Other Rewards

Just like with personal credit cards, business cards will often offer points, cash-back, or other nice perks — including hefty sign-up bonuses!

For instance, if you have a business credit card that offers travel credits (such as Amex or Chase’s business cards), you could earn discounted (or even free!) airline tickets and hotel stays. This, in turn, can help keep your out-of-pocket expenses down.

Hot Tip: If you’re not sure where to start, check out our guide to points and miles for business owners.

4. Large Credit or Spending Limit

Often, business credit cards will offer higher credit or spending limits than personal credit cards do. In fact, in some cases, the limits can be in excess of $50,000 or $100,000! The higher limits on business credit cards allow you to make purchases that may not have been possible using only the cash your company has on hand.

Amex Business Gold High Tea
Image Credit: American Express

Hot Tip: Don’t miss our piece on how to maximize rewards from your business purchases!

5. Opportunity to Boost Your Credit Rating (While Not Impacting Personal Credit)

Having a business credit card — and paying off the balance regularly — can help quickly boost your business credit rating, provided that the vendors and suppliers you work with report transactions to the credit bureaus.

While business credit cards are still backed by you, a business line of credit is completely separate from your personal credit line. This matters because your utilization ratio and other factors shouldn’t affect your personal credit score.

6. Establish a Business Credit Score

While you might need a high personal credit score to get a business credit card in the first place, your spending and payment habits on the business credit card will directly impact your business’s credit rating.

If you’d like to apply for loans or new lines of credit for your business in the future, banks will look at your business credit score when determining the terms it will offer. For example, the higher your business credit score and the more established your existing line of credit are, the better rate and repayment terms you’ll get.

In addition, while you may want to collect a variety of business credit cards, it is best if you only apply for those cards that fit your specific situation and objectives. This is because, similar to personal credit cards, having too many credit card inquiries may show up as a negative on your company’s credit report.

7. Control of Employee Spending

If your business has employees who travel, make purchases of inventory or supplies, or have other responsibilities that require them to spend company money, a business credit card can help you to keep tabs on exactly what they are buying, and how much they are spending.

You could also set spending limits for employee cardholders, based on the amount of credit that is available to spend on the card. Many credit card carriers will offer business credit cards free (i.e., with no annual fee) to a company’s employees.

8. Business Perks

If you have a business credit card that offers rewards, these perks may be business-related, such as discounts on business travel, shipping, and business supplies.

Depending on your company’s particular needs, you may even get a credit card that offers rewards on advertising purchases, which could mean more exposure — and ultimately more customers — for your business.

The Ink Business Preferred® Credit Card is a rewards card that we put a lot of advertising costs for this site on as it earns 3 Ultimate Rewards points per $1 spent on advertising purchases with social media sites and search engines.

Hot Tip: Having a company credit card with business perks can make for a win-win situation, as you could essentially “save” money while spending it.

Some of the business credit cards that offer a variety of perks for business-related needs can be found below:

Recommended Chase Business Cards

Ink Business Preferred® Credit Card - this is our #1 recommended business card and right now comes with a 100,000 sign up bonus after you spend $15,000 on purchases in the first 3 months after account opening. This bonus is worth $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®. Pay your cell phone bill with this card to receive up to $600 in cell phone insurance coverage per year; as well as a number of other benefits.

Earn 3x on the first $150,000 spent on travel and select business categories each account anniversary year, plus 1x on all other purchases — with no limit to the amount you can earn. All for an annual fee of $95.
Ink Business Cash® Credit Card - Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening

This no annual fee business card earns up to 5% cash-back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year, plus 2% cash-back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary.
Ink Business Unlimited® Credit Card - Earn unlimited 1.5% cash back rewards on every purchase made for your business.

Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening. There's no annual fee.

Recommended Amex Business Cards

The Business Platinum Card® from American Express - Right now, there's a new welcome bonus of 85,000 120,000 Membership Rewards points after spending $15,000 on eligible purchases within the first 3 months of Card Membership.

See how we get $4,000+ in value per year by leveraging many of the benefits & perks, including access to 1,300+ airport lounges worldwide. Terms Apply. For rates and fees of the Business Platinum, click here.
American Express® Business Gold Card - one of our favorite Amex business cards because we earn 4x points across the top 2 select categories that we spend the most money in each month, such as Facebook or Google ads. The 4x points applies to the first $150,000 in combined purchases from these 2 categories each calendar year. After that, you earn 1x.

The current welcome bonus is 70,000 Membership Rewards points after spending $10,000 on eligible purchases within the first 3 months of Card Membership. Terms Apply. For rates and fees of the Business Gold, click here.
The Blue Business® Plus Credit Card from American Express - A super simple, no-annual-fee card that earns you 2x points on everyday business purchases, up to $50,000 in purchases per year. After that, earn 1x. Right now, you can earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership. Terms Apply. For rates and fees of the Blue Business Plus, click here.

9. Business Cards Not Subject to Personal Card Limits

Some banks limit the number of cards you can open within a certain time frame. For example, you can only have 5 credit cards open at any 1 time with American Express, whereas Chase only allows you to open 5 cards within a 24 month period.

However, these limits don’t typically apply to business credit cards, allowing you a chance to further expand your credit card portfolio. This means you get access to more cards, more welcome bonuses, and a higher overall credit limit.

10. Higher Limit Purchase Protection

A business credit card with a higher spending limit may provide you with the ability to make larger purchases, as well as offer higher limit purchase protection. While personal credit cards will oftentimes provide this type of benefit as well, business credit cards can actually cover more expensive purchases. This can give you added peace of mind when making larger, company-related expense commitments.

In addition to higher purchase protection limits, you’ll also find cards that offer extended warranties, so your business won’t be financially responsible if your purchases are faulty or malfunction.

Qualifying and Applying for a Business Credit Card

There are several different ways that your company can qualify and get approved for a business credit card that we cover in our extensive guide. Even if you’re a very small company (or self-employed) it’s still very possible and typically doesn’t require much (if any) paperwork to get approved.

Final Thoughts

Using a business credit card can offer a number of nice advantages — including the “clout” it can show when you use a card with your company’s name embossed on it vs. paying only with cash or check.

The best business credit card for you will depend on a number of factors, such as the size of your company, your priorities — such as cash-back, rewards, travel, etc. — and the amount of credit limit that you need.

Before you commit to a particular card, be sure that you spend some time reviewing all of its attributes, including the spending limit, purchase protection, online account access, rewards, annual fee, interest rate, sign-up bonuses, and any other features it may have.

For rates and fees of The Business Platinum Card® from American Express, click here.
For rates and fees of the American Express® Business Gold Card, click here.
For rates and fees of The Blue Business® Plus Credit Card from American Express, click here.

Frequently asked questions

What information do you need to apply for a business credit card?

When you apply for a business credit card, the card issuer will want to know some of your basic personal information, as well as some details about your company, such as your tax or employer ID number (or Social Security number if you are a sole proprietorship) and the amount of your annual revenue.

How long does it take to get a company credit card?

Provided that your business credit card application is approved, you can typically expect to receive the card within 10 business days. Once you receive your card, be sure to activate it so you can begin using it.

How can you apply for a business credit card?

There are several ways that you can apply for a business credit card. Depending on the card issuer, you may be able to complete a paper application and mail it to the credit card company. You may also be able to apply for a card over the phone or online.

Can you transfer a balance to a business credit card?

Whether or not you can transfer a balance from another card to your new business credit card will depend on the card and the credit card issuer. If your card is eligible, be sure to check the terms and conditions so that you know about any potential fees related to transferring a balance to your business credit card.

Susan Wright

About Susan Wright

While writing about finance and insurance isn't something that keeps most people awake at night, it is what Susan Wright has focused on for more than 25 years. As a financial copywriter, Susan has an eye for money-related details such as credit and savings, and she loves to pass along helpful information to consumers. Susan holds 11 financial industry designations (including CLU, ChFC, RHU, REBC, ADPA, CITRMS, CIPA) as well as several licenses.

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