There are a lot of benefits to having a good set of business credit cards for your small business. It is an easy way to leverage your credit to smooth out cash flow hiccups, generate small amounts of business start-up capital and there really are some great rewards.

How Not to Use Small Business Credit Cards

While I have seen a few accounts of small businesses that have used several credit cards as their start-up capital and have eventually succeeded, it is not the ideal way to use credit. Typically it only works when you have little to no credit to begin with and only as a last ditch effort. The problem is that most credit cards have very high interest rates compared to a line of credit at a bank.

Many local banks and credit unions are happy to give small businesses a line of credit that is comparable to a credit card the the interest rate is significantly lower.

Using Small Business Credit Cards for Rewards

If you are not operating with a large amount of debt you can actually benefit greatly from running as many as your expenses as possible through your credit cards. The small business credit card industry is extremely competitive due to the high spending volume that many business have. Since credit card companies get a percentage of each sale they have a lot of revenue to gain even if the companies are completely paying off their balances every month.

Because of these they are constantly battling each other to offer better rewards to businesses who are willing to use their cards and services.

Each time you purchase something with your credit card you get points, those points can be redeemed from everything from flights, hotels, rental cars to straight cash! It actually can end up being a significant revenue source.

A few of my business generate several thousands of dollars in rewards every year because we put everything we can on our high reward credit cards. Everything from equipment, to rent, electricity, advertising (both traditional and new media).

Some Good Offers

If you are looking for a great small business credit card offer with high rewards we recommend the following: