Owning and operating a small business is a huge undertaking. Whether you have a side gig or a full-time operation, as a small business owner or freelancer, you have to be all in. You’re responsible for every aspect of your business, from hiring to producing to purchasing. When you want to give your business every advantage, business credit cards can be extremely helpful.
There are several reasons why a business credit card might be right for your small business. One advantage is separating your personal finances from business expenses. Most business credit cards also offer a range of benefits, including sign-up bonuses, reward points, purchase protections and a quickly accessible cash flow. Business credit cards also allow you to build up good credit for your business.
While many great credit card options exist for small business owners, the Chase Ink Business Preferred Business Preferred® offers all the above benefits.
How business credit cards are different from personal cards
Most people use personal credit cards for purchases large and small. The benefits of doing so include fast access to cash, the opportunity to earn points that can be applied to future purchases and the ability to build up credit with responsible use.
Business credit cards work the same way but are geared more toward the specific needs of business owners. Most business credit cards have terms and conditions to prevent individuals from obtaining them for personal use. However, if you’re a small business owner or a freelancer with good credit who has business expenses, it’s likely you’ll qualify.
Just like with personal credit cards, using a business credit card responsibly—staying within your credit limit and making on-time payments—can help your business build credit, which will come in handy if and when you ever need to apply for a bank loan for larger purchases.
How business credit cards benefit small business owners
While businesses of any size can benefit from having a business credit card, small business owners and freelancers will likely find them essential.
Financial separation
The line between your personal and business finances can be thin when you’re just starting a business. However, that doesn’t mean the line between personal and business finances should be as well. Having a separate credit card for your business can help keep your finances separate.
Business credit building
Similarly, you’ll want to build up good credit for your business, and using a business credit card is a great way to do that.
Even if you start out as a freelancer or sole proprietor, you may find you need to hire employees as your business grows. Each employee can get a card linked to the same account with a business credit card. These linked cards can again help to build your business’ credit and earn valuable points and rewards faster.
Purchase protection
Many credit cards offer various purchase protections, but business cards like the Chase Ink Business Preferred Business Preferred Credit Card often go a step further. When you use your card, you can get purchase protection against fraud, travel disruptions and even theft or damage of company cell phones.
These kinds of protections can go a long way to ensuring peace of mind as you grow your business.
Financial access
Business credit cards often provide perks that business owners need to be successful. Signing up for a small business credit card is much easier than applying for a loan. Many small business owners can get instant approval and start spending right away.
Finally, credit cards are accepted virtually everywhere, meaning you can make the purchases you need to make when and where you need to make them. No more dealing with purchase orders or business checks.
Expense tracking
Another benefit is that business credit cards make it easy to track transactions. When you use a business credit card, all your expenses can be found in one place allowing you to easily document transactions. In addition, many business credit cards integrate with budget software and reporting tools you may already use.
Rewards
You’ll earn points on purchases with many business credit cards like Chase’s Ink Preferred business cards. You can use those rewards for travel or future purchases.
How to pick the right business credit card
The benefits of having and using a business credit card for small business owners are clear, but there are so many out there to choose from—how do you decide?
Of course, you’ll want to find the card most suited to your business needs. Here are some things you might want to consider:
- Do you plan to make big purchases right away? Perhaps a card with a lucrative welcome offer will be best for you.
- Do you travel a lot for business? Pick a card with great travel rewards.
- Are you just getting started and trying to keep your overhead low? Choose a card with a low annual fee.
Why the Chase Ink Business Preferred Business Preferred Credit Card is good for small businesses
Though there may not be a one-card-fits-all choice, the Chase Ink Business Preferred Business Preferred Credit Card will check many boxes for small business owners and freelancers.
The Chase Ink Business Preferred card has one of the highest sign-up bonuses, providing 120,000 Ultimate Rewards bonus points after you spend $8,000 in the first three months.
While all purchases earn one point per dollar, you can earn three points per dollar on the first $150,000 spent on travel and select business categories each account anniversary year. Categories include shipping, internet, cable, phone expenses, travel and even advertising purchases on social media sites and search engines.
You can redeem those points for cash back or travel benefits. As long as your account is open, these points never expire.
Regarding protections, the Chase Ink Business Preferred Business Preferred Credit Card has you covered. You’re protected from fraud, travel mishaps, rental car damage, and theft or damage to recent purchases made with the Ink Business Preferred credit card.
While you earn three points per dollar on your cell phone bill (on the first $150,000 spent in combined purchases), all business phones are protected up to $1,000 per claim.
The Chase Ink Business Preferred Business Preferred Credit Card offers a great mix of perks and protections for your small business.
The bottom line
Starting a small business or making it as a freelancer takes a lot of work. You don’t have all the built-in safeguards of a large corporation, so you need all the help you can get.
A business credit card provides quick access to cash, the ability to earn rewards on purchases and the protections you need to build your business while maintaining peace of mind. You’ll also be able to build credit while keeping your personal and business finances separate.
While there are many great business credit cards, the Chase Ink Business Preferred credit card provides many perks and protections to help you grow your business to the next level.
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