You will find very several reasons why enterprise owners choose to acquire business credit cards, but recent studies confirm that business credit cards are viewed most useful for keeping business and personal finances separate. Company owners say that their primary reason for making use of business credit cards is to avoid their enterprise expenses from obtaining 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 tiny enterprise owners use company credit cards purely to make business related purchases, with a lot more than 90% indicating that the primary want for enterprise credit cards is enterprise travel. They believe that airline flights, vehicle rentals and hotel stays could be cumbersome with out enterprise credit cards.

Perhaps due to the fact of this close association between enterprise travel and enterprise credit cards, you won’t be surprised to hear that virtually a third of the enterprise owners contemplate cash back rewards as probably the most attractive feature, while one-fifth values the frequent flyer mile rewards most. To a lesser degree, the ready acceptance of enterprise credit cards by vendors and suppliers was deemed to be an crucial consideration. Business owners are also happy with the ‘no annual fee’ feature provided by most enterprise credit card issuers.

Business owners tend to use their enterprise credit cards with really particular purposes in mind and are much more conscious about settling business credit card balances in full. According to recent surveys, 63% of all small company owners execute their credit card payments in this manner to avoid finance charges. By comparison, only 40% of all individual Americans pay their full outstanding balances each and every month. This means that small company owners are much less likely than their individual counterparts to accumulate interest fees on their business credit cards – a truth that issuing banks may possibly not like because they earn their profits from interest charges. Business owners would advise you to pay your business credit cards in full or don’t use them.

Interestingly, nearly half (46%) of business owners thought that interest rates and related terms were their most essential considerations when they applied for company credit cards. They indicated an appreciation for the temporary money flow assistance that enterprise credit cards supply, but expressed a dislike for paying interest fees and for debt accumulation. This concern for interest rates and their diligence in paying off company credit card bills to avoid fees implies that credit card businesses do not make a lot money from little business owners.

Most business owners discover 1 – or at most, two – company credit cards sufficient for their purposes. Compared to the average American who holds four to eight personal credit cards, the survey found that the average small business owner only has one or two business credit cards at most.

In reality, 86% of tiny enterprise owners believe their company credit card spending limit was high enough for their needs and that too several business credit cards would tempt them to spend more than is actually essential. This attitude towards credit limits and numerous credit cards might be because small companies, unlike ordinary individuals, do have access to alternate sources of debt financing – something that the ordinary individual doesn’t.

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