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Should you have a Business Credit Card?

By Business of Baking Blog posted 01-06-2022 12:00:00 AM


Learn why having a business credit card could be beneficial for your bakery business and how to decide if it's the right choice for you.

Financing is on top of mind for most business owners, and when it comes to bankrolling your bakery’s growth, most folks don’t immediately think of using a business credit card. However, when it comes to everyday purchases a loan or a revolving line of credit from your bank might not be the most convenient option. What happens when you need to send staff to the store, or your delivery driver needs gas? How do you handle those types of expenses?

As your business’ needs grow and you are no longer the ONLY person in charge of making purchases, I highly recommend that you consider getting a business credit card. This will be a card that is not only designated for business use, but it will also be under the business’ name. Here are a few reasons why you should consider a credit card for your bakery business.

Tracking Your Small Business Expenses

One fairly obvious reason to have a small business credit card is to separate your personal finances from the business related purchases. With a small business credit card, you can execute all of your business transactions online, via phone or in person without using your personal accounts. You’ll then be able to reference the monthly statements to reconcile any business purchases made throughout the month.

Business credit cards are also accepted everywhere. Covering business purchases made by employees on behalf of the company can get tricky. Yes, you can use petty cash, but you’ll need to make sure that receipts don’t get lost in the shuffle. Reimbursing employees who have used personal funds on behalf of the company can get messy as well. So instead of relying on cash, use a business credit card. Most credit card issuers can provide individual employee cards with their own credit limits and they often offer different methods to monitor how the card is used. You will no longer have to dread the end of year nightmare of tracking where and when funds were spent.

Build Your Small Business’ Credit

A credit card with your business’ name on it will give your business credibility. A business credit card looks and feels a lot more professional than paying from your own wallet. Imagine paying for a client's lunch or covering a bill with a Vendor. Using a card with your business’ name on it just feels more put together.

Establishing business credit also gains the respect of financial institutions. Just by owning a business credit card, your business can build credit. So when you need that business loan, if you’ve established good credit for your business, you will get the best interest rate and qualify for higher loan amounts. As your credit builds, you might also qualify for a card with a lower interest rate.

Boost Your Credit Rating with no impact to your Personal Credit

In reality, you are technically still responsible for managing your business credit card. However, a business line of credit is completely separate from your personal credit. If you have a business credit card and you regularly pay it off, you can help quickly boost your business credit rating. This will help you in the future as your business grows and you begin to look for additional financing options under your business’ name.

Increase your buying power

Let’s say you’ve tapped out your resources when it comes to loans, a business credit card can help increase your buying power. Your business may not have a six figure budget. However, a business credit card could help you make the needed purchases that fall outside of your loan amount.

You never know when your business might suddenly need extra money or something unexpected like a pandemic happens. Bakery equipment might need replacing or some smaller expenses might come up from time to time. Without a business credit card, financing shortfalls might drastically interfere with your day to day operations. 

Earn Rewards with a Business Credit Card

You can also save money and earn rewards with a business credit card. Certain business credit cards give you cash back on some or all of your purchases. Cash back programs can be beneficial when it comes to certain types of purchases as well (i.e. gas stations, grocery stores, office supply stores, etc). In other words, business credit cards with cash back options can help increase your profit margin by decreasing your expenses on certain items.

I recommend researching credit card rewards programs that fit the needs of your business. If you have a sales or procurement team that travels a lot, consider enrolling in a credit card program with your preferred airline or hotel chain. This may help to reduce the cost of airfare or lodging. Look for cards that provide travel discounts, free flights, free companion travel or upgraded flight seating. The same can be said for credit cards from your favorite Vendors (i.e. Costco, Webstaurant, etc). Check to see if they have any card holder benefits and how being a member can help your bottom line.


Not only can a small business credit card provide financial benefits, it can also provide convenience and rewards. Having a business credit card can help in so many ways. Just make sure to strategically select a card with benefits that support your business needs for now and the future!

Cyd N. Mitchell
Business Blogger, Retail Bakers of America

Cydni N. Mitchell (aka Cyd) is a Bakery Consultant and the Sweet Business Coach behind Sweet Fest®. Based in Atlanta, GA, Sweet Fest® is an online company that supports the business needs of the Sweet Community in the areas of professional development, marketing, branding and web design.

By trade, Cyd is an accountant & financial analyst with a Masters from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. She is the Founder of the Sugar Coin Academy, an online business academy for business owners in the baking and sweets industry, and she is also the organizer of The Ultimate Sugar Show, Georgia’s Largest Annual Baking and Sweets Expo in Atlanta. She is also the Business Blogger for the Retail Bakers of America.