Credit cards can be useful for business as well as for personal use. In fact, many businesses use credit cards in their day to day operations. And contrary to what you may believe, you don’t have to be a large corporation to obtain a business credit card. These cards can be very beneficial to even small business owners who work out of their own homes.

Business credit cards can help a business build up a solid credit history. Just like individuals, businesses need a good credit history in order to qualify for loans or other lines of credit. By obtaining a business credit card and paying the bills in a timely fashion, you can begin to build a good credit history for your business.

Another advantage to these cards is that they will help you keep your business expenses and your personal spending separate. Small business owners often have trouble staying organized and they pay the price at tax time. They may miss a deduction that they are eligible for, or find that they are being audited because they have deducted something they shouldn’t have.

If you use your business credit card strictly for business, you will know that all charges to it are for business expenses. Most business card issuers provide card holders with a year end statement detailing all their charges for the year by category. This is a great tool for completing tax forms as well as for staying organized and tracking spending.

Small businesses are often low on cash when starting up. Business credit cards are an ideal way to fund a growing business. Equipment, office supplies and inventory can be purchased using the business credit card and paid off later.

The fact that business credit cards often have higher limits than personal cards can be very advantageous to a small business as well. Spending limits of up to $ 50,000 are common, and this amount of spending power can be the key to getting a newly started business up and running.

Many business credit cards are offering reward programs similar to those offered with personal credit cards. With some cards you can earn points for purchases made and then redeem them for business related items or gift cards to office supply stores.

Keep in mind, however, that business credit cards can be just as dangerous as a standard credit card. Just like with personal cards, if you run up debt that you can’t pay off and begin making late payments, your business can suffer quickly. Stay safe by following the same guidelines you follow on your personal accounts. Don’t spend more than you can afford to pay off, pay your bills on time, and don’t miss any payments. If you follow these rules, you will get the most benefits from your business credit card.