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Most entrepreneurs know that there are many benefits that come along with having a business credit card. With a credit card solely for business, you can make purchases related to your company in one place, and can keep your business and personal finances separate.
This practice means advantages including streamlining your bookkeeping process, and making it easier for you to get a business loan. Separating your finances can also help you avoid impacting your business credit score with your personal spending habits. In some cases, just having a business credit card can help you earn a tax break.
Although there are many benefits to owning and using a business credit card, these advantages only exist if you’re using your card properly. Because the line between work life and personal life is blurrier for small business owners than for those with a regular 9 to 5, entrepreneurs are often more likely to mix their business and personal finances despite the dangers of doing so.
We surveyed 1,000 small business owners and asked them if they’ve ever used their business credit for personal expenses. The results we found were surprising! Almost 25% of the small business owners we polled said that they’ve used their business credit card for personal reasons.
Check out the infographic below to learn more about who’s using their business credit card for personal purchases:
Sources: Entrepreneur | Comm Bank | Fundera