Using business credit cards for your small business expenses
Business credit cards are designed for businesses as small as a sole proprietorship up to businesses of 20 people or less.
Generally, it’s a wise decision to use a separate business card for work expenses rather than a personal card. Here’s why:
- It keeps your personal finances separate. When it comes to paying your statement, you’ll have to separate which expenses were personal and which were business-related in order to keep your budgets intact. You’ll also have to do this at tax time.
- You’re eligible for small business perks. Choosing a business card can get you better deals on interest rates and maybe even higher credit limits. You can also find cards that reward you with points.
- You can get additional cards for your employees. Rather than deal with expense reports, give your employees credit cards to use for work-related expenses.
Using personal credit cards for business expenses
In some cases, small business owners may opt to use personal credit cards for their business expenses. This may also be necessary at the very beginning as your business may not be well enough established to qualify for a business credit card.
One benefit of using a personal credit card for business expenses is that you may be able to accrue rewards for all of your purchases. Earning Aeroplan® Miles, Aventura®1 Points or PETRO-POINTS™ can come in handy if you’re travelling a lot to get your business off the ground.
Apply for credit cards with CIBC
Whether you choose to use a business card or a personal card for your work expenses, you can apply for both with CIBC. It’s important to note that a business card is still tied to your personal credit. If you have more questions, you can contact a CIBC customer care representative at 1-800-465-4653.