5 Surprising Benefits of Using Business Credit Cards

Business credit cards can be a convenient way to pay for purchases, but so are personal credit cards. However, there are some unique benefits of using a business-specific credit card to pay for purchases that are important for business owners and self-employed individuals to know. Keep reading for all the details.

1. Earning great rewards for business spending

Some of the top business credit cards offer excellent rewards for common business expenses that are unlikely to be a special category on a personal credit card.

As an example, the Ink Business Cash® Credit Card offers 5% cash back on as much as $25,000 in annual spending at office supply stores and on internet, cable, and phone services. It also offers 2% back on gas stations and restaurants, which are categories where it typically makes sense to separate business and personal expenses.

2. Keeping expenses separate

Perhaps the most obvious reason to use a business credit card is to keep your personal and business expenses completely separate. This can make it easier to do your accounting and can generally make your life much easier around tax time, as you won't have to track down and separate business expenses in your personal accounts.

Business Credit Card Comparison

Consider these business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.

Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.

Offer	Our Rating	Welcome Offer	Rewards Program	APR
Ink Business Unlimited® Credit Card Apply Now for Ink Business Unlimited® Credit Card On Chase's Secure Website.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Earn $750 bonus cash back Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.	Earn unlimited 1.5% cash back on every purchase Earn unlimited 1.5% cash back on every purchase made for your business	Intro: 0% Intro APR on Purchases Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A Regular: 18.49% - 24.49% Variable
Ink Business Preferred® Credit Card Apply Now for Ink Business Preferred® Credit Card On Chase's Secure Website.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Earn 100,000 bonus points Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.	Earn 3 points per $1 in select business categories Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn.	Intro: N/A Purchases: N/A Balance Transfers: N/A Regular: 21.24%-26.24% Variable

3. Controlling cash flow

In many businesses, there's a significant gap between when you have to pay for materials and other business expenses and when you collect revenue from customers. For example, let's say that you just took an order to produce $10,000 worth of products to deliver in two months, and the order will cost $3,000 in materials to make. The problem is that you need to buy the materials now, but you won't get paid until you deliver the product. This can create serious cash flow problems, especially for smaller businesses.

The right business credit card can help you control cash flow, and without any interest expense. One great example is the Amazon Business Prime American Express Card, which offers 0% interest for either 60 or 90 days on eligible purchases (terms apply, see rates and fees). If you regularly need to order supplies for products you'll be paid for later, this can be an excellent financial tool.

4. Keeping your personal credit utilization low

You'll need to provide your Social Security number and agree to a credit check to get a business credit card. But once you've been approved, your account status is generally not reported regularly to your personal credit file. So, if you have a high balance on a business credit card, it isn't likely to show up on your personal credit report (assuming the account is in good standing).

5. Funding start-up expenses

Balance transfer offers aren't common with business credit cards, but 0% intro APR offers on purchases aren't hard to find.

Just like with personal credit cards, many business credit cards offer 0% intro APR offers. Several of our favorite business credit cards offer 0% intro APRs for 12 months on purchases, and if you're reasonably sure you can pay back a certain expense within a year, it can be a great way to fund start-up costs with no added expense.

Not an exhaustive list

To be clear, these aren't the only benefits of using a business credit card, but they are some of the most important ones that apply to businesses of all sizes. Even if you have a small business and you are happy with your personal credit cards, getting a business credit card could make good financial sense, and for a variety of reasons.