Control on Employee Spending
With a Business Credit Card, it becomes possible for an employer to set limits on spending for its employees.
Enhancement of Credit Rating
A business' credit rating gets enhanced if the card is not misused and payments are made on time. So, it is important to do business with suppliers who regularly report transactions to credit bureaus.
Extension of Credit Limits
Credit Cards for small businesses typically have a credit limit that exceeds $50,000. It thus opens the scope for entrepreneurs to make major business purchases that otherwise may not be possible with a personal credit card or cash.
Uniqueness of Business Credit Cards
Personal credit rating never gets reflected in transactions with a Business Credit Card and it stands out on its own. So, now with the credit card in hand, there is no need to analyze business and personal transactions when the time comes to pay taxes.
Helps in Bookkeeping
Making payments for all business purchases and meeting related expenses with a single credit card, paves the way for better 'bookkeeping' of the company. The credit card users can simply refer to their card statements on a monthly, quarterly or yearly basis and know their expenses at a glance. Payment for all purchases can be made with one check each month, thus facilitating ease of managing a business checking account.
Allows Issuance of Additional Cards
Possessing a Business Credit Card allows entrepreneurs to find additional cards in the names of key employees. It saves time of the company as these types of cards can be used to make purchases whenever the management approves.