Business credit cards are similar to regular credit cards but have one key difference: They are designed for business use only.
A regular credit card is typically considered for personal use, whereas a business credit card is specifically for activities related to business.
How can you use a business credit card?
The key is to have a plan on how you will use the credit card for your business expenses. According to the U.S. Small Business Administration, some acceptable uses of a business credit card include paying for gas in a company car, taking clients out to lunch and buying office supplies, to name a few.
If you’re a business owner, you can apply for a business credit card. Even if you’re working as a sole proprietor or as a business owner with an LLC, you can likely apply for a card.
Why should you get a business card?
You might think that getting a business credit card is just another thing to add to your already-substantial to-do list. If your current system is working, why change it, right? But getting a business credit card can actually streamline your finances and make things easier.
Here are the top reasons you should get a business credit card:
1. Separate business from personal expenses.
2. Access to a short-term loan.
3. Get perks and rewards.
4. Build your business credit.
Next steps
Before applying, carefully consider what you really want out of a business credit card and how it can help serve you and your goals. Read the terms and conditions and evaluate a few offers before deciding on one.