If you own a business – it doesn’t matter how small it is and how many employees you have, you should always apply for a business credit card. What if I only have myself working in the company? Isn’t my personal credit card good enough since it has high credit line? You should always separate your personal and business credit cards, just like personal expenses and business related expenses. Messing two types of expenses together could create potential tax and money management problems.

One big advantage of using a business credit card is that you can separate personal and business transactions. Most of the business credit cards now offer you the option to summarize expenses at the end of each year. The purchases you made are categorized and itemized. With all the expenses by month, quarter, and by year, you can easily identify the trends and increase or decrease certain purchases to maximize your profit.

It’s also important to start building business credit which will make it easy for you to take loans and credit lines as you business grow. Just like many small businesses you never know when it will become a multibillion dollar corporate. And when you need capital or a loan to expend you business you company’s credit history will play a major role in determining the amount you can get. A business credit card can help you mange cash flow better too. Depending on the type of vendors you are dealing with, some require payments upfront. You can do that with a credit card payment and pay only the end of the billing cycle. Better yet, take advantage of some intro 0% APR on purchase – you don’t have to pay off the entire balance until 9 months later. That’s basically like having some extra cash to work with so you can invest more into your business today.

Some business credit cards even offer reward points and cash back. You can earn cash back or redeem reward points for travels, hotels, and merchandise. Rent, materials, shipping, computer hardware and software, papers and pens, they can all earn rewards for you and your business.