Small-company operators can benefit from business credit cards. While it may bring up images of people with actual storefronts, small-business entrepreneurs come in a variety of shapes and sizes. Business credit cards are available to freelancers, contract employees, internet retailers, and other types of gig workers. Small-company entrepreneurs that desire to do the following can benefit from business credit cards:
Sole proprietorship: Business credit cards are available for all sorts of enterprises. As a result, even freelancers, independent contractors, and gig economy employees with low starting or operating capital can use a company credit card to pay inventory, cyclical needs, and emergencies.
Earn some additional income: Even if you just use the card for infrequent transactions — a client lunch here, supplies there — the cashback will accumulate over time. You may receive even more cash back or points from a business credit card if you optimize your incentives.
Use points or miles to pay for business travel: Whether you’re a frequent or infrequent business traveler, a travel rewards business card may get you one step closer to a free flight or hotel stay with every qualified transaction.
Separate business and personal spending: Tracking and managing your company’s expenses is one of the most basic reasons to have a card devoted only to business. This not only helps with budgeting but also makes filing your company’s taxes a lot easier.
Finance a significant purchase: If you want to take your firm to the next level but don’t have the cash to do it, a business credit card can assist. You can not only spread the payments over several months, but you can even eliminate credit card interest completely by taking advantage of a 0% introductory APR period.
Take advantage of one-of-a-kind incentives: Business cards sometimes include perks tailored to appeal to small-business owners. Free employee cards, cost monitoring tools, quarterly summaries, merchant discounts, purchase protection, and travel bonuses are all common rewards.
Employee spending can be tracked and rewarded with the finest business credit cards, which allow you to enroll staff as authorized users for free. You can track or even limit employee spending by adding employee cards. You can establish spending limitations in some circumstances.