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Business credit cards and personal credit cards work in similar ways. You’re given access to a revolving line of credit with a set limit based on creditworthiness. If you fail to pay your statement balance in full within the billing cycle, you will typically face interest on the unpaid balance and new purchases. Business credit cards are a great way to ensure that you keep your personal finances separate from your business finances and make it easier to differentiate the two when it’s time to do your taxes.

tartups are the term most commonly used to describe companies in the early stages of business, especially those that have received funding from investors. These startups must handle expenses just like any other business, and they may choose to do so with a revolving line of credit like a business credit card. Startups and other businesses typically have banking needs that are quite similar. A startup would use the same type of business credit card that other businesses would use, but they may want to find a business credit card that offers reward points or miles for their common expenses such as food, travel or gas.

The purpose of a business credit card is to provide a revolving line of credit that is solely for the benefit of a business. Anyone who owns a business, even independent contractors and sole proprietors, can apply for one. They’re often contrasted with personal credit cards, which are revolving lines of credit intended for personal expenses. You can do a few things to get the most value from your business credit card as a startup.

First thing you can do is take advantage of bonus offers. Don’t overlook any introductory bonus offers. With these offers, you can often get a considerable reward bonus for spending a specified amount using your new business credit card within a certain amount of time after opening the account. So, if you think your business expenses will add up during that period to be enough to qualify for the bonus, consider swiping your card to receive this incentive.

Using a business credit card can help businesses build a solid financial foundation in ways that are both versatile and often overlooked. Having a business credit card can assist your company in its financial journey during the early stages of development. If you’re trying to start your business, applying for a business credit card can be a great idea. By using a business credit card, small businesses can have a specific payment method for business expenses instead of using their personal credit card. When used appropriately, a small business card can help you save your valuable startup funds and improve your business’s financial health.