There is a lot more to running a small business than just serving customers’ needs, although that is always the main focus.  In addition to keeping your customers happy, you need to stay on top of the accounting and financial needs of the business, as well as keeping things running smoothly in all other areas.  The small business owner often can’t afford to hire people to help with various aspects of running a business, so he must do everything himself.  This includes choosing a small business credit card.

You might think that it’s easy to select a credit card, but there is more to consider than just the APR.  Small business credit cards can be used to help the business establish credit and manage cash flow, so it is a very important tool for many small business owners.  When you apply for a credit card for your business, the lender will consider the amount of capital you have, whether you can afford to make the payments, the collateral you have available, the conditions under which you are trying to run your business, and even your character.  It’s important to keep these things in mind when you apply in order to improve your chances of acceptance.

For many small businesses, cash flow can be an issue.  Many times, business owners must order inventory or supplies in order to fill an order, but the payment doesn’t come until after the order is completed.  It is necessary to have financing available to cover the cost of supplies until the customer’s bill is paid.  If the time period to be covered is less than 30 days, the most important thing to consider when choosing a small business credit card is the length of the grace period before interest starts being charged.  You want to have a card with a long enough grace period that you don’t end up having to pay interest.  If you must wait more than 30 days to be paid, it will not be possible to avoid paying interest.  In this case, look for a credit card that has a low interest rate.

If you travel a lot for business, you might want to look for a small business credit card that also offers airline miles or other travel rewards.  If you are going to be charging your expenses on a credit card anyhow, you might as well earn some free airline tickets or hotel accommodations by using your card.  Whichever card you choose, be sure to read the entire terms and conditions prior to applying to make sure you understand all of the fees associated with the card.

It is the American dream to become successful by owning and operating a small business.  There are more than 600,000 new businesses started in this country each year, so it is apparent that there aren’t just a few people that believe in this dream.  Whether you have an established business or you are just starting out, there are many benefits to having a credit card for your small business.

1. Keep your business and personal finances separate.  You don’t want to accidentally use your business funds for personal items or vice versa.  You can use a small business credit card exclusively to keep from having to sort through each transaction to determine whether it is a business expense or personal.  Using a business credit card can save you time and money.

2. Build up your business credit in a positive manner.  If you have a credit card for your business, use it wisely and make your payments on time, you will establish a good, strong credit score for your business.  Building up good credit in your business name can open the doors to new small business loans and other financing opportunities.

3. Belong to a rewards program.  There are numerous reward programs available with various credit cards.  Find a reward program that will work well for your business.  For example, if you can find a reward program that allows you to earn business supplies, you will benefit from using it.  If you have to travel for business, having a rewards program that earns free travel may be helpful.  Consider what you need and try to find a rewards program that will be the most beneficial to your business.

4.  Easy record keeping for your business.  Using a credit card for your expenses and purchases can allow you an easy way to track your expenditures and therefore the deduction you will be able to take at tax time.  A small business credit card that provides an annual statement will make it easy to see exactly what you have done all year and find the tax deductions you are entitled to.

5. Credit cards for easy purchasing.  As your small business expands, you will find that allowing key employees the opportunity to use a credit card for necessary business expenses makes things easier on you.  Most business credit card companies allow you to put several card holders on a credit card so multiple employees can use the same credit card account.  Also, in this way you can easily see what your employees are doing and purchasing.

6. Concierge services.  Some small business credit cards have the benefit of concierge services.  This means that services such as reservation assistance, flight verifications, and even personal shopping services are available at no or low cost to the card holder.  This means that you can have your travel arrangement done for you or flowers sent to a sick employee with one quick call.

7.  Travel benefits.  Regardless of whether you are utilizing a rewards credit card program that awards travel benefits, most credit cards provide travel accident insurance as part of their card benefits.  This will help cover you if you ever lose your luggage or have a flight canceled.