ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Benefits of Business Credit Cards

Updated on December 12, 2019
Nicoartz profile image

I have done a lot of SEO content writing for websites; thus, I have done a ton of research about loans, credit cards, and consolidation.

Business Credit Cards - Managing Business Just Got Easier!
Business Credit Cards - Managing Business Just Got Easier! | Source

Managing business just got easier with business credit cards!

Need to get that inventory soon but no cash at hand – try business credit cards. They’re easy to sign up for, simple to use and can be a ready source of credit when you face a cash crunch. That’s a big bonus for your business – especially if it’s a small start-up you own. Let’s take a look at some of the benefits and some of the negatives of these types of credit cards.

A boon or the devil in disguise?

Business credit cards no doubt offer flexibility in getting cash when you’re strapped for money. However, just like any credit card, it isn’t the best source of money – as we all know. The thing with credit cards used for business is that somehow, personal and professional monetary requirements seem to get entangled. Here’s why:

  • Defaulted payments:

    Just in case your business has defaulted on payment, then the credit card company is going to come after the person who signed up for it. This is a prerequisite that a person needs to agree to, before signing up for any business credit card.

  • Credit score:

    While you will definitely try avoiding any chances of late payments from your business, there may be the occasional slip-ups. This can affect the personal credit score of the person who signed up for the card. This makes your credit rating weaker, for no fault of your own.

  • Fraudulent transactions:

    There is one significant difference between a credit card for personal use and one for business purposes – in the way fraudulent transactions are handled. For personal use credit cards, customers are free to register a complaint with the credit card company on any disputed transaction on the statement. However, business credit cards do not offer this flexibility.
  • Damaged goods:

    Let’s say you’ve purchased new stock of inventory for your business. You soon realize some of the goods are in damaged condition. If you had used your personal credit card for the transaction, chances were, you could have asked for a refund for these damaged goods. If the vendor refused to cooperate, you could ask the credit card company’s help. However, in the case of a business credit card, the credit card company chooses to stay a neutral 3rd party and does not get involved in the disputed transaction.

The silver lining

Now that you have a fair idea on the risks associated with business credit cards, it’s time to sit back and relax – because a business credit card offers you significant advantages to help your business. I will go over a few helpful tips when dealing with these types of credit cards.

Tips to ensure your safety

Here are some tips that will help safeguard your safety. These steps will ensure that your personal and business finances do not get mixed.

  • Business credit bureaus:

    These are different from consumer credit bureaus. These solely focus on businesses, the sources of income, the financial standing of businesses, etc. Registering with a business credit bureau will enable you to position your business better.

  • Personal finances:

    It pays to organize your personal finances. The reason being that most startup companies do not have adequate finances. Hence while signing up for a business credit card, if your business does not have adequate funds, chances are your personal finances are going to be used. Therefore your rating etc will be placed in the personal credit report. Organizing personal finances and paying off liabilities will help to stabilize your personal credit rating and even the financial health of your business.

  • Shopping for a business credit card:

    While choosing a business credit card, make sure to assess your own financial goals first. Things like the period of repayment, whether the bank will accept payment in installments etc. Next, you also need to check out if the credit card company provides you with cashback, discounts while shopping, etc. These are extra perks that help save money. Since this is for your business, your employees may need more business credit cards. Check if the credit card company provides additional free cards.

Business credit cards can be your best friend or your worst enemy – it all depends on how responsibly you use them.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2019 Jason Nicolosi


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)