Business Credit Card

Build Business Credit: 5 Key Reasons to Get a Business Credit Card

Are you in the middle of starting up your business from the ground up? Do you worry that your company isn’t handling its cashflow correctly? If so, then you need to get a business credit card to build business credit.

Doing so can give you a lot of key benefits. You’ll be able to build up your credit score, which can help you land a business loan for your company. It can also help you get a better deal from your vendors.

See below for several reasons why you need to get a business credit card and give your company a financial advantage from this point on

  1. Draws a Line in Your Finances

Ask several business owners their worst financial mistake when they started their company and many of them will tell you that it was not drawing a line in their finances. In other words, they didn’t find a way to separate their business expenses and personal expenses.

Not doing so can land you in a world of hurt come tax season. It will be a pain to sort out all of the different expenses between the two categories.

With a business credit card, you’ll have a clear picture of what your company’s cashflow really looks like. It will also help you understand where your personal finances are at.

This will be a huge help if your company ever undergoes an audit. There will be a clear line between the business expenses you’ve had and how you’ve managed your cash flow in the past.

The definitive like in your business and personal expenses will help you control your budget as well. You’ll know how much money you have at all times, which can help you make wiser choices with the purchases you place on your company’s business credit card.

If you’re in the state of Idaho and are looking for a trustworthy bank to receive a business credit card through, be sure to visit

  1. Boosts Your Company’s Business Credit

Good credit is an integral piece of your company’s future. There will be times where you’ll have to request a high amount of money from a lender to kickstart a business initiative. This might be things like starting a new product line, purchasing new heavy machinery, acquiring land for your headquarters, etc.

Getting a business credit card and using it wisely can help you build good credit. There are many different benefits of that, such as:

  1. Better Offers from Suppliers– Purchasing equipment and inventory is one of the biggest reasons you need a credit card. With good credit, you’ll find it easier to land better rates from suppliers (both new and old) because your credit score shows them your company can be trusted to pay it back.
  2. Better Terms on Loans– There will likely be numerous times that your company needs loans (both big and small). When lenders see your good credit, they’ll be happy to give you favorable rates to prevent you from going elsewhere.
  3. Helps You Scale Your Business Faster– If you notice that your company is struggling to meet high demand, then it’s time to grow your facilities and inventory. With good credit, lenders will be happy to assist in your expansion endeavors for you to grow larger than even you envisioned.
  1. Helps You Handle Emergencies

It’s not uncommon for a company to experience unforeseen expenses. When those happen, you might feel as if you have very few places to turn to for help.

With good credit, you’ll be able to receive a loan with favorable rates that can help cover the cost of the expense in a lump sum. Then, your business can pay back that amount at a more reasonable rate that favors your cashflow.

If you use a credit card, you can avoid the loan application process entirely. You can pull out the card, pay for the expense, then have it paid off by the next pay period!

  1. Cash-Back and Point Opportunities

One of the most widely-used credit cards for business is the ones that allow you the chance to build up travel points.

This is especially useful for those of you that have clients or workers who are from out of town. You won’t spend as much money out-of-pocket to cover travel expenses.

Many cards offer cash back after spending a certain amount within a specific time window. For example, they might offer a $500 bonus cash back for customers that spend $5,000 in the first 2 months of the card being opened.

  1. Higher Spending Limits

Perhaps you’re thinking to yourself “I already have a personal credit card, I’ll just use that for your business expenses”.

If so, there are two things wrong with that line of thinking. First, as we mentioned earlier, this can make it difficult to separate your personal and business expenses down the line.

Second—and most people don’t realize this—your personal credit card doesn’t have near the spending limit that you’ll need. Business credit cards can offer up to $50,000 in spending, and sometimes even $100,000 in credit!

Build Business Credit for Your Company Today

Now that you have seen all of the different benefits you can receive when you build business credit and invest in a credit card, it’s time to find the right one.

Don’t just look at the factors of the card, look at the bank that you’re receiving the card through. Can they be trusted? Are they genuinely interested in helping you grow your company?

Be sure to browse our website for more articles on building business credit, as well as many other helpful topics.