Small businesses have a significant role to play in directing a country’s economy. According to the data available at the US Small Business Administration for the year 2005, there were around 28.5 million small businesses in the US alone. Small businesses employ almost 50 percent of private sector employees, and they provide 60 percent to 80 percent of new jobs over the past 10 years.

One important way of managing finances in a small business or startup is to use business credit cards.

The biggest advantage of using business credit cards is that one can clearly demarcate personal expenses from business expenses using these credit cards. They offer businesses with the power of credit, an extremely important factor in driving the success of a business establishment. One can easily track expenses made while purchasing business related goods and service when business credit cards are used.

An annual report detailing all the purchases made through the credit card is extremely useful when reviewing all the accounts and tax payments. These can also be used to temporarily fund a business without waiting for bulk cash from a lender.

Various companies such as Citibank, American Express, Advanta, Chase and Discovery offer business credit cards. All these cards differ among each other with respect to various reward programs and incentives offered with each one. Different types of reward programs offered on business credit cards include Cash Back Reward Programs, Frequent Flyer Miles programs for frequent travelers and Gas Reward Programs for transportations and fuel discounts. Other added perks associated with them include points on all the purchases made at select outlets and shopping privileges from affiliate merchants.

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