How Small Business Owners Can Benefit From Using Credit Cards


As a small business owner, using credit cards responsibly can work to your advantage for many reasons. Here are some pluses to using them when handled properly.

1. Cover expenses while waiting to get paid.

Credit Card Expert, David Rubenstein of charges everything business-related to his business credit card. He states that it’s a way to cover expenses that need to be paid while waiting on revenue from a sale to reach his account. He explains, “I receive my revenue approximately 30 - 60 days after a ‘sale’ occurs. Many expenses, such as hosting, I pay on the first of the month (in advance for the next 30 days). By charging that expense, I better align the expense with my receipt of income.”

 2. Get rewarded on regular purchases.

Putting a large portion of your business expenses on a credit card can work to your financial advantage. Rubenstein adds that the Ink Business Preferred credit card allows business owners to benefit from their regular spending. It gives 3 points for every dollar spent on phone and Internet expenses.

He’s also able to rack up points when paying for social media marketing. He places ads on Facebook. Since these expenses help grow his business, he is able to maximize the rewards value of his regular spending.

3. It helps keep accounts separate.

If you’re out running personal errands and spot something you need for your business while you’re out, it’s tempting to just throw it on your personal credit card. Though it might seem convenient in the moment, guard against doing this.

You want to follow the golden rule of keeping your business and personal accounts, credit cards included, separate. It’s the professional thing to do. It also makes it easier to track transactions. This is especially helpful during tax time.

You can avoid combing through your personal statements to look for needed information. For example, the purchase of hair products for your salon won't be lingering between your Amazon Echo purchase or your beer of the month subscription you just bought.

Online influencer and founder of, John Rampton knows that using credit cards for business can help keep you organized come tax time. He explains, “It’s a great way to keep track of tax deductible items as the credit card summary offers a monthly and annual summary of charges. This summary helps ensure you don't forget any items for tax deductions that you might have otherwise done by trying to track receipts.”

The Bottom Line

If you're setting a goal to get a business credit card, when managed carefully, credit cards can work to a small business owners’ advantage for a number of reasons. It’s important to use them wisely when making purchases for your business. Be sure to pay off the bill in full to avoid carrying a balance and getting into debt. Shop around and compare different business credit cards carefully to find one that meets your needs.