(Shared by Jennifer Dunn, Program Assistant, OSU South Centers)
Building business credit creates more financial opportunities for your business. Banks, lenders, and other suppliers all rely on business credit reports to assess the creditworthiness of your company.
According to the Small Business Administration, 46 percent of businesses used personal credit cards for business expenses. This statistic shows that many businesses fail to separate business and personal expenses, which is necessary to establish business credit.
Why should I use a business credit card instead of a personal credit card? Business credit acts as your business’s financial reputation. If you can borrow money as an individual, why go through the trouble of borrowing in the name of your business?
1. Business credit cards help separate personal and business finances
2. Business credit cards help establish a profile for your business
3. Business credit cards help build your business’s credit, as long as used with discipline
4. Business credit cards provide higher credit limits than personal credit cards
5. Business credit cards earn your business rewards
6. Business credit cards provide your business with certain benefits