Business Use of Credit Cards

In the words of one major university:

“Credit cards provide the college, university, or office of the chancellor with a cost-effective, convenient and streamlined method of purchasing items, thereby reducing the volume of individual payments processed by the college, university or office of the chancellor to vendors. Reports on cardholder activity enable the college, university or office of the chancellor to capture information necessary to better manage college, university or office of the chancellor purchasing activities.”

Credit cards simply make it easier to conduct business.  The tracking of purchases is a major advantage, since the business will get a summary of purchases each month.  This also aids in auditing purchases, aligning budgets, and summarizing by department or item.

It won’t matter if the business purchases flowers, gasoline, hotel rooms, meals, paper, computers, medicine, office furniture or software; it can all be tracked by the credit card business account.

Make sure you understand the terms of use of your business credit cards so that you will not incur the expense of high interest rates. Another advantage of business credit cards is that they usually have a relatively high limit, sometimes as high as six figures. In addition to flexibility and buying power, this gives you the confidence you need to make good decisions when you're negotiating.