6 Ways to Utilize Your Business Credit Card


So you’ve finally been approved for that excellent line of business credit. You’ve got in your hands one of the best business credit cards available. You may be asking yourself, “what are the best ways to use this new credit line?”

You don’t want to go wild and exhaust your entire line of credit all at once. Instead, you should make purchases and investments in your business one at a time. As you pay off the purchases in a timely fashion, you can deduct them from your taxes as operating costs and maintain your credit utilization score by rolling over into the next set of purchases or improvements. You can even and even build your overall credit score in the process. We’ve compiled these great ways to utilize your business credit card and get the most out of your money.

Startup Money

Startup money is essential for any small business to get off the ground. This includes office spaces, permits & licenses, inventory, research and development, marketing or any other expense that is essential for doing business in whatever sector you work in. It’s good to use credit to fund your startup plus it will give your credit utilization score a good jump start.

By using credit to pay for your startup costs, and paying them off in the most timely manner possible you can move on to the next investment or strategy quickly, without deducting from net income. By making the on-time payments to your lender you can avoid steep interest rates, as well as maintain and grow your credit score.

New Upgrades

Purchases that allow you to keep up with your industry standards are always a smart investment because they allow you to do business on a par with your competitors and gain a competitive edge in your market. Also, having comfortable workspaces for yourself and your employees is essential to productivity. These kinds of investments can pay themselves off over time, and are tax deductible.

Another smart way to utilize your credit line is to make upgrades to your retail space or office. This can include anything from new computers and software to appliances, office furniture and more. If you work in the digital sector, you know the importance of having state of the art software and technology, as well as a comfortable place to sit. Desks, chairs, and other creature comforts like a microwave or a refrigerator for the break-room are all tax deductible purchases that you can make with a credit line.

Building Renovations

You’ve got the top quality gear and tech for your business strategy, you’ve got comfortable workstations, but your lobby or your storefront could use some new life. Maybe your building isn’t the most attractive or inviting space and needs a facelift. The next smart purchase you can make is to renovate your facilities, inside and out. You want your company image to present itself impeccable before a potential client or customer even walks in the door.

This is why it’s a good idea to use your credit to pay for signage for your retail or office space. Attractive signage is eye-catching. It’s a basic, but effective method of attracting traffic to your business. With good signage, you can showcase your services, products or solutions on the outside of your business, and that is free advertisement. Once again, this is totally tax deductible.

Furthermore, you can use credit to pay for renovations to your lobby or offices. A new coat of paint, new furniture, magazine subscriptions or a cutting-edge flat screen tv for your waiting area, are all tax deductible purchases you can make with credit.

Project Funding

Another set of good ways to invest in your business credit line are funding new projects and developing new products and services. Using your company credit to fund research and development of new cutting-edge solutions is a good way to improve your credit score and is ultimately a wise decision that can bring a profitable return to your initial investment. By staying at the forefront of trends in any industry, a company can more readily cater to the demands of your clients and customers, and better serve their needs.

In addition to funding new projects, you can also use credit to pay for new marketing strategies Marketing is a crucial investment for any company to stay relevant to its customer base, as well as attract new clientele. Whether you decide to do your own marketing or outsource your marketing campaigns to professional marketing companies, you can deduct both marketing and project funding from your taxes. These are smart credit purchases that once again pay for themselves over time.

Purchase Materials

If your company offers physical products, you can use credit to pay for materials for manufacturing your product. This includes components, tools, and any raw materials that you need in order to produce your product.

This also applies to restaurant settings and catering services. Everything from kitchen appliances and utensils to inventory items are excellent purchases to make with credit, and also are, as you can probably guess, tax deductible.

Ongoing Employee Training

In some industries, ongoing training courses, or yearly certifications are necessary to stay at the top of your industry, and in some cases even required by law. You can use credit to pay for these ongoing training and certification courses for yourself and your employees, to stay ahead of the game. It’s probably no surprise that training programs are also tax deductible expenses.


Nobody wants to go into their own pockets, or cut into the bottom line when making business purchases. By using credit to pay for tax-deductible business purchases, and by making proper, timely payments to your lender, you can improve your credit score, This will also allow you to better serve your clients and in turn keep your finances afloat on smooth seas, so to speak.

By making well-planned credit purchases and investments one at a time, and by making the properly scheduled payments you can avoid incurring high-interest rates and further improve your credit score. What are some good investments or purchases you have made with your business credit line?

Image via Shutterstock

About the Author

Gary J. Wilkinson

Gary Wilkinson, internet marketer in UK, England

comments powered by Disqus