Perks + Concerns of Credit Cards for Small Businesses



July 21, 2016

Have you considered getting a credit card for your small business, but aren’t sure if the risks outweigh the rewards? Here are some pros and cons to help you decide!:


  • Having a company card will help you separate your business purchases from your personal. You’ll be able to easily review your statement each month and provide your bookkeeper important info to help balance out your books.
  • The points! You’ve seen a million commercials, and probably have earned points, airline miles, cash back, etc. through personal cards. Business cards are no different. Some, like Chase Ink, offer 5 percent cash back at office supply stores as well as on cell phones, landlines, internet and cable TV services purchases. That’s a lot of stuff you regularly need for your business!
  • Credit cards are straight up convenient. Rather than having to write checks, keep track of cash purchases, or having to provide payment for individual invoices, you can often have your credit card saved by your suppliers and frequently used services. Set it up to auto-renew your google business account or your website service provider. Knowing that you have a card ‘on file’ can be reassuring.
  • If you pay your balance at the end of every month, you avoid paying interest, so you’re essentially operating on a revolving 30 day loan that helps you earn rewards and track your expenses.


  • This one may seem obvious, but if you don’t pay your balance when due, you are spending hard earned money on interest. All credit providers have different interest rates and APR (annual percentage rate), so it may take some research to find out which is best for you. Determine if you’ll be able to pay your balance monthly, or if you believe you may need to carry a balance, and use that information to make your decision.
  • Most credit cards require a personal-liability agreement to repay debt, so your small business card balance and repayment can affect your personal credit. It’s something to be aware of as you don’t want to negatively impact your credit score or be personally on the hook for a balance with a high interest rate.
  • Credit cards require discipline. It can be easy to over charge or purchase things you wouldn’t have otherwise, just because you can. The best policy is to carefully keep track of your expenses charged to credit cards, pay your bill off in full as often as possible, and analyze your expenses monthly to stay aware of your spending habits.

I hope this helps you decide if you’re ready for a small business credit card! As always, please feel free to reach out with any questions!

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