One of the many difficulties of starting a small business is gaining access to capital during the startup phase.  With the large growth in small specialty businesses across the country, credit card companies are beginning to design special programs to help this new breed of business achieve success.  For even those small businesses that have access to capital, the perks and benefits associated with small business credit card programs, can still be useful to help you compete more effectively in the marketplace.  Below are just six of the many ways in which a small business credit card can help your business to operate more smoothly and improve your bottom line. 
 
Ease Your Cash Crunch
A small business credit card can ease your business’s cash woes.  Through the development and implementation of a sound financial plan that utilizes a credit card you can guarantee that your business will always meet payroll, be able to purchase inventory on an as needed basis, and manage both seasonal and business fluctuations without depleting your cash reservoir.  Another added advantage is the cash advance feature, which allows you to withdraw cash from an ATM to cover emergencies and other unanticipated expenses.

Unlike a personal credit card, a business credit card also provides a business size credit line, which is substantially higher.
 
Keep Track of Business Expenses
Through the use of a credit card, you can, with little to no effort, separate your business expenses from your personal expenses. This allows for easy identification of tax deductions and filing of accurate income tax returns.
 
Secure Multiple Cards
You can also secure more than one card through small business credit card programs.  This allows you to give employees the authority to make purchases while freeing up your schedule for more pressing issues. You can also do this with ease since you are also given the ability to set spending limits for different employees, which will further help you to control your expenses.
 
Access Free Business Resources
Anything free is good!  Some credit card companies also provide clients with a wealth of resources to help manage cash flow and develop good record keeping procedures free of charge.  Extensive reporting is conducted on both a monthly and bimonthly basis to help you track your expenses down to the penny.  Additionally, free business checks and electronic funds transfers are also available.
 
In addition to that, you can also access reports, data and advice on developing business and marketing plans, conducting market analysis, and pricing products through a company’s web site.  You can also increase your knowledge of other products and services like software programs that can help your day-to-day operations run more efficiently. 

Build Credit to Qualify for Larger Loans
Obtaining a credit card and using it wisely can also be a stepping-stone to help your business qualify and secure a loan with a major bank or venture capitalist firm.  By establishing a good relationship and credit history with a company that also offers other products and services, it’ll just be a matter of time before other cost-saving services are thrown your way.

Perks and Rewards
Perks and Reward Programs designed especially for small businesses are by far one of the best features of a small business credit card program.  Small businesses can earn airline points and cash back rewards just like the big boys.  Discounts are also available through select merchants like FedEx and Staples, which can result in huge cost savings for supplies and other operational expenses.  Some companies also go an extra mile by providing rental car and lodging benefits. 

 

Advanta Platinum with Rewards Card

0% APR for 15 Months on Balance Transfers, 7.99% Fixed APR thereafter

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AMEX - Business Gold Rewards Card

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One thing about businesses is that the business expenses can really become unmanageable, particularly if you do not have a system in place to keep track of your expenses and know exactly where your money is going. All businesses small or large and everywhere in between should have a system in place that allows them to keep track of their business expenses. One great way of doing that is with a credit card.
Credit cards, especially if you use one designed specifically for your business can give business owners a great advantage. They allow you to not only purchase items and pay on them later, but also allow you to keep track of your expenses. Some cards are designed to provide business owners with extra services such as online access, which will allow you to print out reports, keep track of the various cards you have given to your employees, and monitor the costs of expenses as you go.
These types of credit cards are an essential element for most any business, regardless of size. In some cases, a business’ expenses may get out of control, having a handle on expenses and costs from the beginning can help avoid this problem. What is great about these types of credit cards is that many even offer rewards for using them in specific areas, which may include office supplies, improvement stores, airline flights, car rentals, and other business related expense items.
Using the right credit card may also allow you to control your expenses right down to the specific type of expense category it falls under. For example, some credit cards offer a service that allows you to view purchases based on categories such as entertainment, car rentals, airline flights, supplies, hotels, and so on. This is a great element for any business owner and can allow you to take control and put a stop of excessive spending in your company. Even if your chosen credit card company does not provide extra benefits like mentioned above, you can still use your statements and receipts to determine where your money is going. Many businesses, particularly those who provide their employees, management, or executives with business credit cards, require that the cardholder submit copies of their receipts for record keeping. This is crucial, particularly for tax time, and keeping track of expenses. By using one credit for all business expenses and only business expenses, you are assured the best method of keeping track. Even if you do not use or are not offered those extras, you will still find comfort in being able to determine how much you are spending, if and when you need to cut back on expenses, and control the spending within your business.
Another great thing about many business credit cards is that they allow you to give employees, administration, and management their own credit cards under the same account. This further allows you to manage your business expenses. You can determine how much a particular employee is spending and on what. This can be beneficial if a specific employee is abusing their credit card privileges.
Furthermore, all expenses will still be on the same account, which keeps the business expenses intact and easily managed. Each cardholder will receive their own credit card and credit card number, allowing them to use it when necessary for a variety of different business related expenses, but will all go under the same account during billing time.
Controlling your business expenses is a crucial step in operating a successful business of any type. The right business credit card will help you do just that, there are many available, do your homework and determine which one will best suit your company and its needs.