Using a Business Credit Card for Business Financing

You can use a business credit card to buy office equipment such as computer, printer, copier, fax machine, etc. A business credit card can also be used to purchase supplies or to pay your office lease or commercial lease space. By charging these purchases to your credit card, you can have the chance to pay in installments rather than cash.

In fact, some business credit cards may offer zero percent introductory rate which means you can pay down your balances within the next few months without incurring interest rate. The introductory period can last for six 12 months or longer, depending on the issuer.

Using a small business credit card is also a great way to establish and build business credit history. However, you should choose a business credit card that will report your payments to a major business credit tracker like Dun & Bradstreet. Take note that not all credit cards advertised as business credit cards may offer credit reporting provision.

It’s also important to understand that credit reporting agencies for consumers are completely different from the business credit bureaus. To build a separate business credit history, you must register your business with a business credit tracker.

Another advantage of using a business credit card for payment is that all your transactions are recorded so that you can easily keep track of your business spending. Issuers of credit cards for small business also provide quarterly or annual report which can be used as accurate references in your yearly inventory or in preparing your business taxes. It would be easy to determine which of your expenses are qualified for tax credit or tax deductions based on your business credit card summary report.

There are also a number of business credit cards with varying reward programs. These reward programs are especially designed for businesses so that you can earn incentives and savings from your business spending. By choosing a reward credit card that fits your business’s demands, you can save a great deal of your working capital and enjoy exclusive perks and privileges as well.