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USE A BUSINESS CREDIT CARD TO GROW YOUR BUSINESS

According to a study by the firm Mercator Advisory Group, in 2015 there were about 13.9 million credit cards held by small businesses in the United States. The report also indicates that the expenses of these companies with this means of payment amount to $430 billion dollars. These figures show the reception that this form of financing has found among businessmen. Business credit cards are a reliable source of capital, as they offer a revolving line of credit, with a limit generally higher than personal credit cards.

However, deciding on a credit card as a financing mechanism can be difficult if you do not know its advantages. So that you have a clear perspective on this matter, we list below the main qualities of this credit tool and the ways in which it can help you grow your business.


Allows you to create a credit history


One of the reasons a loan application is rejected is the lack of a credit score. This score is obtained by evaluating the financial history of your business, such as outstanding debts and timely payments. These and other factors make up your credit history.

One of the simplest ways to establish a positive credit history is to use a business credit card. This history will allow you to access bank loans and other types of credit in the future.


It is easy to access this type of financing

Applying for a business credit card is easier than processing a bank loan. There is no need to gather endless documents, such as financial statements, tax returns, or a detailed business plan.


Gives you special benefits

Using business credit cards brings you rewards, which you can adapt to the needs of your business. For example, if you travel by plane frequently, you accumulate miles, get better hotel rooms and discounts when renting a car. Other benefits include fuel rebates and rebates of up to 5 percent on purchases made at merchants authorized by the card provider.


Help organize your expenses

Most business credit cards include accounting tools, which allow you to keep track of financial movements. They generate monthly expense reports and simplify the way you file taxes by keeping business expenses separate from personal expenses.