How to Choose the Best Credit Card for Your Small Business

Convenience is the reason why most people get a credit card, to back up their certain expenses they cannot handle at that moment. Most entrepreneurs and financial advisers recommend to separate your personal finances with your business expenses, it makes accounting easier to understand and comply with your financial goals by having a credit card to your business, and this will only happen if you’re doing it right.

But have you ever wondered how you can choose the best credit card for your small business? Usually, it offers lower fees and several rewards that you’ll benefit as well.  And for a clearer picture, I listed a guide to help you decide well

Know the Basics of Business Credit Cards

Here are the basics you need to know about business credit cards:

  • Compared to personal credit cards, this one comes with higher credit limits to ensure that you can maximize all your prospect purchase
  • Worthiness depends on your personal and business credit history
  • Business credit cards are solely used for business expenditures alone
  • Usually, it allows you to issue credit cards for your staff and track their expenditure too
  • Pay your bills right and on time, CARD Act don’t compromise to business credit cards
  • Doesn’t apply for personal use
  • More often, your personal funds are the main collateral if your business can’t cover its card expenses
  • Quick source of capital

The listed items are just the fundamentals you should know before deciding whether you really need it for your business or it’s just another add-on luxury. Regulations are also enforced to avoid fraud that can cause inconvenience and loss of money.

Examine Your Business’ Expenditures

It would be a great advantage if you know where you’re going to use the credit card. If you’re using this card for a specific service or purchase, then you must choose a provider that gives out cash back for the certain expenditure. But this is tricky for some so better check if you’re rooting for a bank who impose an annual fee because it will only add to your burden.

You can utilize a business credit card for your company needs but you can also use this as your way of earning back the fees charged to you.

Know the Pros and Cons

A credit card is a lifesaver for some, but will it be able to save your business or will it make everything worse? Check and compare.



  • Offset charges
  • Strict rules and penalties
  • You’ll be the card’s personal guarantor
  • There are no grace periods for deadline

But just a heads up, not all the credit cards are like these. You should check and evaluate briefly if their offer fits your business’s needs and if this would not waste any cents on this tough decision because it will also rely on how responsible you are when it comes to spending.

Look at Fringe Benefits

We have listed above the usual benefits you’ll most probably receive if you’ll get a business credit card. So being mindful in this act should be portrayed efficiently, it’s a matter of yes or no decision and accounting strategies. You can always manipulate your expenditure if you have one since it excludes your personal finances, it’s easier to manage it without sacrificing your savings to be used.

Furthermore, the high ceiling of credit limit will allow you to maximize your production and efficiency needed to increase sales in your business. Hesitation won’t be a thing anymore rather you’ll be more responsible in your decision because you’re aware that your personal assets will be at stake as well.

Business credit card sounds really reliable to use, yes, it might be but in some cases, it doesn’t help at all because of the fees imposed only worsen your debt in business. You should write down all your prioritized expenses so you’ll know if it’s really worthy to put your personal account as a collateral for your preferred business credit card. At the end of the day, it’s still your decision if it compromises your usage and your goals so swipe responsibly!