Once you have started a great business, it reaches a point where you need to separate your personal finances from your business expenditures. This will enable you as an entrepreneur to focus your efforts on building a solid financial ground for your business to run on. Of all the business financing solutions available in the market, business credit cards are among the best solutions with many benefits.
Business credit cards offer your startup a reliable cash flow. Most business credit card providers use your personal credit scores and records to determine if you qualify for a business credit card. This means you will be able to get business credit advances easily compared to other funding options like bank loans. You can also benefit significantly by using business credit cards with a low-rate balance transfer or a low introductory rate. This means you can make large inexpensive purchases for your business or side hustle.
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Business credit cards often have promotions that can be beneficial for any business. An example of these promotions is the cashback on purchases. The cashback promotions differ from one business credit card to another, with some credit cards offering a flat cashback rate across all products. In contrast, others offer higher cash back for specific categories. As a business manager, you can analyze your spending to determine which business credit cards will give you the best cashback. You can also use more than one business credit card to maximize your cashback.
Business credit cards tend to be more secure compared to other methods like business debit cards. Under federal laws, a credit card holder is not responsible for more than $50 in any fraudulent transactions carried out using their credit cards. Some business credit card providers sweeten the deal by offering zero liability to the credit cardholders. The same federal protection is not provided for business debit cards.
Some great options for business credit card providers include:
1. The Chase Ink Cash
They offer you a $250 bonus when you sign up and also do not charge you an annual fee. They also provide a 5% cashback on all office appliances and a 2% cashback on gas and lodging.
2. Capital One Spark Cash for Business
They offer you a 2% cash bask on all purchases using the card and award you a $100 bonus when you open an account with them. On top of that, they waiver the $60 annual fee for the first year your business credit card is active. And if that’s not enough, they award you $50 for every supplemental employee account you open.
3. True Earnings Business card from Costco and American Express
This credit card doubles as a membership pass at Costco. In addition to that, you get a cashback of 4% on gasoline. Let’s not forget, 2% on restaurants and travel, and 1% on all other purchases.
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In conclusion, going for a business credit card is the smartest choice. You will be able to get financing quickly enjoy great rewards, top-level security for your finances. Additionally, grow your business credit scores since business credit card providers report your credit activities to commercial credit reporting agencies.