Business credit cards: all you need to know

If you have your own business, you might be interested in getting a business credit card.

Keeping your business and personal accounts separate is always advisable, because it makes things clear and simple when it comes to keeping books or paying tax. The same follows for a credit card – it’s better to look for one specifically for your company which is distinct from your personal card.

And if you have employees, it may be much easier for them to use the firm’s business credit cards for buying training courses, work-related equipment, travel tickets for business trips, or entertaining associates, rather than having to pay out of their own pocket and claim the money back on expenses.

Some business owners have opted for credit cards since the credit crunch, because finding other forms of credit, such as loans, can be hard to come by.

As with all credit cards, it is essential to keep track of what you and your staff spend. It’s advisable to only entrust the card to people you consider to be reliable members of staff to prevent the card privilege being abused.

Another advantage of a credit card is the all important statement, which should help you to keep track of spending, because every item is listed. Depending on which card you choose, you may have the choice of paper or online statements. Paper statements are handy to read on the go, while online statements mean you don’t have to worry about losing that sheet of paper!