4 Reasons Why You Need a Business Credit Card June 2024

June 3, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

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Small businesses can use a business credit card to help build a solid financial base in a way that is both versatile and often overlooked. Having a business credit card can assist your company in its financial journey during the early stages of development. If you’re trying to start your business, applying for a business credit card can be a great idea. By using a business credit card, small businesses can have a specific payment method for business expenses instead of using their personal credit card. When used appropriately, a small business card can help you save your valuable startup funds and improve your business’s financial health.

Here are 4 reasons why you should apply for a business credit card:

1. Keep track of your spending: Keeping track of your spending, particularly during the initial stages, is crucial as an owner. By using business cards for your business expenses, you can manage your expenses and cash flow by categorizing your charges according to type. Authorizing your employees to use business credit cards for business purchases is an option, but you can set limits to monitor their spending. Your company will have online access to monitor individual employee transactions and aggregate them to generate an overall expense picture.

2. Stretch your cash: Payment flexibility can be obtained through using a business credit card in multiple ways. Unlike other credit cards, you can save money by paying monthly instead of paying each time you make a purchase. In addition, a business credit card typically offers the option to make a minimum payment every month instead of paying the entire amount your company owes on a given statement. This can assist in alleviating cash flow requirements during tighter periods.

3. Build your business credit history: Getting a business credit card is a simple process. Your organization can start building your business credit by using your credit card responsibly once it has been approved. Your business’s credit may become a factor in securing financing in the future as it’s one of the primary factors that lenders take into consideration when evaluating your loan request. Using your small business card account responsibly means staying within your credit card limit and paying off your balance diligently.

4. Earn rewards and perks: If your company is approved for a rewards credit card, your company can use your business spending to accumulate valuable perks, such as travel rewards or cash back from your purchases. If you have additional authorized cardholders, your company will receive rewards benefits based on their spending too.

Check out CreditMonarch’s best recommended business credit cards of June 2024 below.

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• Business Credit Card
• Cash Back
• Credit Card
• Rewards credit card