As a small business owner, you may have come across the option of getting a business credit card. At first, it may seem like an unnecessary expense or hassle to manage another line of credit, especially if your personal finances are already tied up in the business. However, there are many advantages to having a business credit card that can greatly benefit your small business. In this document, we will dive into the pros of having a business credit card as a small business.
We are small business owners, we don’t have time to be tracking emails and receipts down from 7 months ago. The best way to combat that is to keep your business ledger simple, clean, sterile and easy to find by using a buisness credit card or business banking account.
Business credit cards help:
- Build business credit
- Allow for quicker and more cash flow by allowing you to purchase equipment
- You stack rewards for each purchase and use to pay off your card/redeem for other rewards
- Protect from credit card/online purchase fraud
- Categorize expenses for tax season
- By offering Perks/Rewards
- Allow peace of mind in cases of emergencies
What is Chase Ink Business Unlimited Credit Card
If you are a small-business owner looking for straightforward rewards, this card is perfect for you. This business credit card gives you unlimited 1.5% cash back on EVERY purchase, regardless of the category. If you have other chase cards, you understand the bonus categories frustration. This means ALL purchases are eligible purchases to receive 1.5% cash back on.
What Credit Score Do You Need to Apply/Be Approved for This Business Credit Card?
Credit scores matter for the Chase Ink Unlimited credit card. You will need between a 690-850 credit score. Anything in between the good and excellent will most likely get you approved. However, this is a hard inquiry on your credit score; I would make sure that you have a good credit score and credit history.
Chase Ink Business Unlimited credit cards are issued by JPMorgan Chase Bank, N.A. Member FDIC.
Why Would I Need a Business Credit Card?
A business credit card isn’t a necessity, but we have found that it actually works well in our photo booth business model. disclaimer: credit cards should be treated like a debit card and paid off when used; not abused
If you’re in the market for a credit card, business cards might be your best bet! Not only do they offer just as many benefits — if not better — than personal cards, but they sometimes even provide huge sign-up bonuses and exclusive spending rewards! So, why not consider applying for one now?
Convenience and Organization
One of the main advantages of having a business credit card is convenience. With a separate line of credit for your business expenses, you can easily keep track of your business transactions and avoid mixing them with personal expenses. This not only helps with organization and accounting but also saves time when it comes to reconciling expenses at tax season.
Another benefit of having a business credit card is the potential tax benefits it can bring. As a small business owner, you are entitled to certain deductions for business expenses. Having a separate credit card solely for your business transactions makes it easier to track and report these expenses, making sure you don’t miss out on any potential tax deductions.
Building Business Credit
Just like personal credit, having a business credit card allows you to build your business’s credit history. This can be beneficial in the long run when it comes to securing loans or lines of credit for your business, as lenders will consider your business’s creditworthiness. By using and paying off your business credit card responsibly, you can establish a positive credit history for your small business.
Separation of Personal and Business Finances
Having a separate credit card for your business also helps to establish a clear line between personal and business finances. This is not only important for organization but also protects your personal assets in the event of any legal or financial issues with your business. By having a clear separation, you can better protect your personal credit score and assets from any potential harm.
Additional Perks and Rewards
Business credit cards often come with additional perks and rewards that are tailored specifically for small business needs. This can include discounts on business-related expenses such as office supplies or travel, cash-back rewards, or even airline miles. These benefits can add up and help save your business money in the long run.
The Chase Ink Unlimited Business Credit Card is wonderful when it comes to perks. I use my business card for all purchases and pay it off, like I would with bills. Then at the end of the year, I can use the points/dollars I have accumulated to pay myself back, book a trip, buy my family and employees gifts, the list is endless.
What Are the Pro’s of The Chase Ink Unlimited Card?
- No annual fee
- No cap on your rewards (unlimited cash back for a reason)
- New card/Sign Up bonus offer (HURRY, this ends soon)
- Welcome bonus Earn $900 bonus cash back after you spend $6,000 on everyday business purchases in the first 3 months from account opening.
- Intro APR 0% for the first 12 months from account opening on all purchases and balance transfers (if paid off in full)
- No foreign transaction fees
- Employee Cards at no additional cost
Perks of Chase Ink Business Unlimited Having Employee Cards:
Giving your employees cards (the trusted one, whew, that could get bad) will help you get rewards much faster, especially if they are entrusted to make everyday business purchases.
One thing we (Kait and Matt) did when applying for this card is making Kait the owner, since she quite literally owns the business and making Matt an employee. He and her share the spending responsibilities, but it allowed for them to both have cards at the same time so they didn’t have to share.
You can also set employee individual spending limits on each card, to give you peace of mind.
The ultimate perk of having employee cards (give one to yourself and your partner if you are in a business together) is earning rewards faster.
Cons For This Business Credit Card:
I wish I could just say NONE. Because that is how I feel.
However, if you use chase credit cards, then you know about the bonus categories. This card does not have categories, so there aren’t chances to earn ‘more’ or extra reward points. It’s 1.5% cash back (or however you choose to redeem your rewards) on all eligible purchases (which, surprise, is everything)
Account opening was simple, along with the application process. However, when we were approved for the card, our credit limit was set incredibly low. I was confused. I immediately called Chase Bank and asked for a credit limit increase. They were able to raise my credit limit by $10,000 and it did not affect my credit score to ask for a credit limit increase.
*Please use credit cards wisely. Be aware of the APR as well as the terms and conditions*
Why Did We Go With This Business Credit Card?
We knew we were making an $8,000 purchase IMMEDIATELY upon approval of this Chase business credit card. We knew we would qualify for their into offer of $750 cash back right then, and that we would get 1.5% of that total back as well (that purchase gave us $750 + $120 back.
The terms of the other Chase business credit cards were either a bit confusing (those damn categories again), there was no intro APR period of 0% for 12 months, or there was an annual fee. While I will pay the annual fee for a great card (going to plug my Venture card here.) I couldn’t justify any of the Chase business credit cards with any annual fee.
In Short – We chose Chase Ink Business Unlimited because:
- We knew we were going to get the intro offer immediately
- We didn’t want to pay an annual fee
- The rewards system was easy to understand (1.5% cash rewards on every purchase made with your Chase Ink Business Unlimited card)
If you align with those feelings and beliefs, I would totally tell you to get this credit card over the other credit cards.
Conclusion About Business Credit Cards
Conclusion
In summary, while a business credit card may not be a necessity for all small businesses, it can provide numerous benefits and advantages that can greatly benefit your business’s financial well-being. From convenience and organization to tax deductions and building credit, there are many reasons why having a business credit card is worth considering for your small business. So if you’re ready to take your small business to the next level, consider applying for a business credit card today! Remember, always use credit cards responsibly and avoid taking on more debt than your business can handle. Now go out there and make the most of those rewards! Happy spending!
Looking For More Information On Starting a Photo Booth Company?
Check our our article dedicated to all things starting a photo booth company using photo booth from Photo Booth Supply Co. We focus on the Salsa Booth in this article due to its ease of learning.