Commingling business and personal finances can complicate record keeping and tax filing. It can also lead to legal problems should your business face any sort of liability which could put your personal assets at risk. The problems of commingling are further compounded if you develop the bad habit of carrying business balances on your personal credit cards. Quite simply, it can sink your credit score, which could make it very difficult to get financing for your business.

Why your business needs a business credit card:

• Keeps your finances separate and reducing record keeping time.
• Reduces personal liability
• Improves business cash management
• Higher credit limits
• More control over expenses.
• Cash back rewards can save hundreds of dollars a month in typical office expenses.

Business credit cards are not easily obtained if your business does not have an established credit history. Here are some ways to build a credit history quickly:

Get a gas credit card: These are more easily obtained and can get the ball rolling on reporting credit payments to your business credit report.

Open a vendor credit account: Many office suppliers are willing to extend a small amount of credit to newer businesses. It would be helpful if they did report your payments to the credit bureaus, but even if they don’t, it’s beneficial to have them as a credit reference.

Take out a small business loan: If you work with a local bank or credit union, they may be more inclined to extend a small working capital loan. If you can show a stable stream of receivables you could qualify for a revolving loan using your receivables as collateral.

Build your personal credit score: While banks consider your business credit history, they also look at your personal credit history to gauge your credit integrity.