Advantages of Having Small Business Credit
Business credit is typically easier to obtain than other lines of credit and it helps small business owners conserve cash while still purchasing what they need for their business. Surveys report that more than 65 percent of small businesses now have business credit.
Some of the advantages of business credit are:
• Higher credit limits. Most business credit can carry credit limits of $50,000 or more, making it much easier to make major business purchases.
• Credit rating boost. Making timely payments can help boost your business credit rating quickly. Try to do business with suppliers who report your transactions to the credit bureaus.
• Separate business credit. A business credit card stands on its own, meaning your personal credit rating is not reflected in your transactions. In addition, by having a separate credit card for a small business, you no longer have to sort out business and personal transactions when it is time to pay taxes.
• Control employee spending. Business credit makes it easier to set limits on spending by employees.
• Business perks. The rewards offered on business credit cards are typically business related and may include discounts on business travel and on shopping at business supply outlets.
Another advantage of business credit is that by using it, you show the growth of your business while promoting it at the same time. Even someone running a home-based business gains more credibility when using a business credit card.
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