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Should my business get a small business credit card? It is a tough decision.

Many business owners finance their new startup with hard-earned savings. And while this is preferable, if you have reason to believe your company will succeed at a rate higher than the interest rate required on a small business credit card, then what is to hold you back? Right?


The truth is, small businesses almost inevitably have shaky times at the start. You need to be prepared financially before you make this venture. Taking out home equity lines of credit or signing up for endless high-interest small business credit cards is just often not the right idea. This is not to say that it is never the right idea. Below I give some options where getting the card might be in your best interest.

(1) Big Purchases
If you are making larger purchases, especially those that might be delivered, using a small business credit card might be right for you. The protections that come with using a credit card simply cannot be overstated in this case. Most small businesses could not foot the bill if something went wrong on a major purchase such as computer equipment for staff.

(2) Traveling
If your small business requires traveling, I would defintely get a small business credit card. It is simply unfair to expect your employees to pay their way and get reimbursed. I know it has been standard practice for years, but it just is plain unethical. If they are on business, you should pay. Period.

Hopefully these tips will help you decide whether a small business credit card is right for you.

This Business article was written by George Van Allen on 5/4/2006

George is a Business Consultant out of Dayton, Ohio