Business Owners’ Views of Business Credit Cards
There are quite a number of reasons why business owners choose to obtain business credit cards, but recent studies confirm that business credit cards are viewed most useful for keeping business and personal finances separate. Business owners say that their primary reason for using business credit cards is to avoid their business expenses from getting mixed up with their personal expenses: Using business credit cards separates the two, thereby contributing towards maintaining the integrity of their accounting records.
90% of all small business owners use business credit cards purely to make business-related purchases, with more than 90% indicating that the primary need for business credit cards is business travel. They believe that airline flights, car rentals and hotel stays would be cumbersome without business credit cards.
Perhaps because of this close association between business travel and business credit cards, you won’t be surprised to hear that almost a third of the business owners consider cash back rewards as the most attractive feature, while one-fifth values the frequent flyer mile rewards most. To a lesser degree, the ready acceptance of business credit cards by vendors and suppliers was deemed to be an important consideration. Business owners are also happy with the ‘no annual fee’ feature offered by most business credit card issuers.
Business owners tend to use their business credit cards with very specific purposes in mind and are more conscious about settling business credit card balances in full. According to recent surveys, 63% … Read more