If you own or operate a small business, odds are you need to purchase items on credit now and then. If you've been using a personal credit card for those purchases, it's time to consider asking your bank to set up a credit card that will help your bottom line more. Here are some of the advantages of doing so.

3 Benefits of Having a Credit Card for Your Small Business

1. It Expands Your Family's Personal Limit

If you've been regularly placing business credit charges on your personal card account, it means you have less available credit for family purchases. Perhaps you'd like to finance a vacation, install a swimming pool, or splurge on gifts this year. If you’re limited in the amount you can charge because of outstanding business expenses, a business credit card—and a timely balance transfer—will free up credit your family can enjoy.

2. It Builds Your Business Credit History

Your business is likely a discrete entity, at least according to banks. Even if you, as the owner, have an outstanding credit rating, your business may not qualify for a loan unless it has a history of business credit on its own. For instance, if you ever wish to expand your office or invest in a new piece of manufacturing equipment, it will be helpful to show any potential bank or lender that your company has a history of paying its credit card bills on time.

3. It Lets You Delegate Spending Safely

With a business credit card, you can allow certain employees to charge on the account with little difficulty. Simply hand over your card to a worker you trust. You won’t have to be present for every purchase, but you can limit who has spending power. It’s an extremely convenient solution to an issue that many small businesses face.

To discuss the possibility of a business credit card, contact Putnam 1st Mercantile Bank. With two locations in Cookeville, TN, and a third, recently opened branch in Baxter, they’re your neighborhood go-to for financial security. They’re locally owned and operated in Putnam County and offer mortgage loans, checking accounts, revolving credit, and internet banking options. Visit their website for location details or call (931) 528-6372 to schedule an appointment.