What you need to know about business credit cards
Business credit cards are a popular choice among entrepreneurs who have limited business history and don’t qualify for lower-cost financing, such as bank lines of credit. 65% of small businesses use them on a regular basis. Business credit cards are just like personal credit cards, it’s a revolving line of credit you use for business expenses. Just be sure that you’re getting a business credit card and not one tied to your personal credit. Maxing out personal credit cards for business expenses can kill your personal credit scores. But business credit cards can actually help build your business credit profile — as long as you pay your bills on time.
Business credit cards pros and cons
Best uses for business credit cards:
- Working capital
- Every day expenses
- Short-term revenue generating opportunities
- Marketing expenses
Nav’s verdict:
It’s always a good idea to have one or two available for short-term emergencies and working capital. Plus, business credit cards are an easy way to start building a strong credit profile in your business’s name. They also make it simple to track business expenses and separate your personal from business finances. That’s something every serious business owner should do right away.