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Business Banking

The Benefits of Owning a Business Credit Card

Having the right financial tools is crucial for success as an entrepreneur or small business owner. One such tool that can significantly benefit your venture is a business credit card.

A business credit card is a type of credit card specifically designed for use in business transactions. It allows you to make purchases, track expenses, and build credit in your company’s name, separate from your finances. But how does it work, and what are the advantages of having one? Let’s explore. 

Advantages of a Business Credit Card 

One of the primary benefits of a business credit card is the increased purchasing power it provides. With higher credit limits than personal cards, you can make larger purchases for your business without maxing out your available credit. This flexibility is invaluable, especially during periods of growth or unexpected expenses. 

Another significant advantage is the separation of personal and business expenses. Using a dedicated business card lets you keep your company’s finances organized and make accounting and tax preparation a breeze. No more sifting through personal statements to identify business-related charges. 

Many business credit cards also offer attractive rewards and cashback programs. Whether you earn points for travel, office supplies, or cash back on all purchases, these rewards can combine and provide a valuable return on your business spending. 

Additionally, business credit cards often come with exclusive perks and discounts tailored to the needs of entrepreneurs and small businesses. These can include savings on shipping, office supplies, travel, and more – helping you stretch your budget further. 

Perhaps most importantly, responsibly using a business credit card can help you build business credit. This separate credit history can make it easier to secure loans, lines of credit, and better terms from suppliers and vendors in the future. 

Drawbacks of a Business Credit Card 

While the benefits are numerous, it’s also essential to understand the potential downsides of a business credit card. One drawback is the higher interest rates they typically carry compared to personal cards. The interest charges will increase if the cardholder doesn’t pay the balance monthly. 

Many business cards also come with annual fees, ranging from modest to quite expensive, depending on the card and its perks. Be sure to weigh the value of the card’s benefits against the annual cost. 

When you have easy access to credit, there is a temptation to overspend. Exercise discipline and use your business card for necessary and budgeted expenses. 

Finally, failing to do so can negatively impact your credit score. Most major issuers will report your business card activity to consumer credit bureaus if you’re a sole proprietor or personal guarantor. 

Qualifying for a Business Credit Card 

To qualify for a business credit card, issuers typically consider your credit score, annual business revenue, years in business, and potentially your income. Even startups with little to no revenue may still be eligible, as issuers understand the needs of new companies. 

If one has trouble getting approval on a business credit card, steps like improving credit score, paying down existing debts, and demonstrating consistent business income can improve chances. Sole proprietors, LLCs, corporations, and other business entities are generally eligible to apply. 

Why Apply with Amerant Bank? Understanding the merits of a business credit card, Amerant Bank offers excellent options. Their suite of Visa® Business Credit Cards provides competitive interest rates, reasonable annual fees, and generous rewards programs tailored to different business needs. 

For example, the Amerant Visa Business Cash Back Card earns an unlimited 1.5% cash back on all purchases – a solid return for companies with high spending across various categories. Frequent travelers may prefer the Amerant Visa Signature Business Card, which accrues valuable airfare, hotels, and more points. 

Beyond the cards, Amerant Bank is renowned for its exceptional customer service and support. Their knowledgeable professionals dedicate themselves to helping businesses succeed by guiding customers in financial strategies, credit management, and more.

Lastly, Amerant’s online and mobile banking platforms make managing your business card account efficient and convenient. Customers can view statements, make payments, redeem rewards, and more from their computer or mobile device. 

Getting Business Done the Right Way 

In today’s competitive business landscape, having the right financial tools is vital to thriving and growing your venture. A business credit card from a reputable issuer like Amerant Bank provides numerous benefits – from increased purchasing power and expense tracking to rewards, perks, and the ability to build valuable business credit. 

While there are potential downsides, such as higher rates and the temptation of overspending, the advantages often outweigh the risks when used responsibly. If you’re ready to take your business finances to the next level, explore Amerant Bank’s business credit card offerings and apply today. 

Editorial Team
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