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Benefits of Using a Business Credit Card

From petty cash to employee reimbursements, there are a few different ways business owners can choose to manage daily expenses. In an increasingly digital world, it’s no surprise that plastic has become the preferred payment method for most business owners. But when the question becomes debit or credit? credit is probably the best way to go. Let’s learn why.

Business Credit Cards Protect Against Theft

The biggest reason business owners choose to use business credit cards (rather than relying on debit or cash) is that business credit cards provide an extra layer of protection against theft.

You probably know that consumers are protected under Regulation E—which basically allows individuals to report any suspicious purchases made on their debit card. In the event that a consumer’s debit card would be lost or stolen, that individual is not responsible for fraudulent charges. This regulation protects the money in personal bank accounts. However, Regulation E does not apply to business debit cards—meaning that if a business debit card is misused, the business itself simply loses any of the funds that have been lost to theft.

The beauty of a business credit card is that it protects businesses against any fraudulent charges that might be made on their corporate debit card.

It’s Quicker to Qualify for a Credit Card Than a Loan

If you need fast access to funds, qualifying for a business credit card takes far less time than applying for a business loan. There are different reasons why a business loan would be needed rather than relying solely on credit cards—including the total amount of money needed, whether it’s a lump sum or small increments, and how you ultimately plan to use the money. So, even though there are circumstances where a business loan is the best option, business credit cards can be a great choice for short-term borrowing.

Business Credit Cards Build Credit for Your Business

Just as responsible use of a credit card will build good credit for an individual, the same is true for businesses. By using your card wisely, you can establish a great credit score that will come in handy if you do need to apply for a business loan down the road.

It’s Easier to Control and Monitor Spending

You can set a cap on your business credit card to prevent the cardholder (your employee) from overspending when they travel for work or charge other purchases to the company. Similarly, monitoring expenses is easier with a business credit card because you don’t need to sift through receipts—you simply need to review your monthly statement to see exactly how and where money was spent.

Earn Cashback Rewards on Purchases You’d Make Anyway

Expenses like office supplies, phone services, and even gasoline are all examples of purchases that might be eligible for cash back rewards. Any rewards you earn are yours to spend as you wish. Whether you let them accumulate all year to save for a holiday celebration with your staff or simply allow the cardholder to enjoy the rewards that they’ve earned, credit card rewards can be a great staff incentive that doesn’t cost you any extra.

They’re Convenient!

Most employees won’t want to front their own money for business purchases to be reimbursed later. By providing them with a company card, you can make transactions simpler for your staff. Employees can simply use the card just like they would use their personal credit card, without having to keep track of petty cash. The streamlined transaction process reduces the risk of inaccuracies because every purchase is clearly documented in the credit card statement—and any suspicious spending can be disputed.


If you’re ready to roll out a credit card for your business, Union Community Bank can help. It’s never been easier to find the credit card that’s right for your business. Simply complete our online application process to get started. And of course, we’re only a phone call away if you have any questions at all about the process or need help choosing the card that’s best for you. Union Community Bank business credit cards are offered through a partnership with Elan Financial  Services.

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