Business credit card myths and realities






(NC) -- I don't need a separate credit card for my business.

A business credit card costs me more money and time.

Business credit cards don't offer the same features and benefits as personal cards. I don't want to lose all the points I've already earned.

There many misconceptions about owning a business credit card. The reality is that a business credit card makes it easier for business owners to manage their finances while enjoying features that come with their card, such as travel insurance and rewards. In addition, using a business credit card with your name on it conveys a sense of professionalism and gives you credibility as a business owner. To demonstrate the value of owning a business credit card, RBC will dispel some of the common myths.

I charge my business expenses to my personal credit card and don't need a separate one for business.

Keeping separate personal and business credit cards makes it easy to track and manage your expenses. It saves you time and money as you won't have to determine which expenses are personal versus business as you would if everything is charged to one card. Using a business credit card establishes a credit history for your corporation, which is important if you plan to expand your business.

Owning a business credit card will cost me more money.

A business credit card saves you money by helping track expenses so that you can better manage your cash flow. Some credit cards allow you to earn points on your purchases that you can use to pay down your card balance. As a business owner, your card's annual fee may be a tax deductible expense.

Tracking expenses on a business credit card adds more work to my busy day.

Using a separate business credit card to track expenses saves you time. Having a dedicated card allows you to view and manage your business purchases anytime. Your monthly statement outlines your business expenses so that you know where the money was spent and plan your budget for the next month.

Business credit cards don't offer comprehensive insurances.

Some business credit cards come with comprehensive insurances for travel, merchandise and vehicle rentals. Examples include trip interruption and cancellation insurances along with purchase security and extended warranty protection for eligible purchases. There's also liability waiver insurance to protect your business from unauthorized charges made by employees.

Business credit cards don't offer the same perks as personal cards.

There are business credit cards that allow you to earn and redeem points for travel and merchandise. Look for a program where you can easily earn points and not worry about them expiring. Find a business credit card that allows you to combine points with your personal card so that you can maximize your earn potential and redeem for rewards faster.

For more information on Business Avion, visit www.rbc.com/businessavion


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