Cash used to be king. People paid for everyday purchases with cash or with checks (which are functionally equivalent to cash), and they saved credit cards for big, infrequent purchases or for emergencies. Nowadays, credit cards are accepted almost everywhere, and some people never carry cash at all.

If you are a small business owner, you’ll benefit even more so than an individual using credit cards. Businesses usually spend much more per month than an individual. Make sure you are using a true business credit card. Some issuers will place your business name on the card but its still a personal credit card reporting to the personal credit bureaus. If it shows up on your personal credit reports, it is a personal credit card. Every time you use that card for your business you will be negatively impacting your personal credit score.

You want to ensure it is a true business credit card that reports only to the business credit bureaus. You will not see these cards on your personal credit reports. When you use these cards, they will not affect your personal credit.

In general, I recommend paying with a business credit card whenever possible:

Business credit cards are safer to carry than cash and offer stronger fraud protections than debit cards.
Your business can earn significant rewards without changing your spending habits. Cash back options can be significant.
It's easier to track your business spending for tax purposes.
Responsible business credit card use is one of the easiest and fastest ways to build business credit with the major business bureaus such as Dun & Bradstreet, Experian Business, Equifax Business, and the Small Business Financial Exchange.

Credit cards are safer to carry and use

If you lose your wallet or get robbed, any cash you were carrying is almost certainly gone forever. If thieves go on a spending spree with your credit cards, however, you generally won't be held responsible for fraudulent purchases.

Debit cards, too, pose a risk. When your credit card is used fraudulently, it's the card issuer that loses money. When your business debit card is used fraudulently, the money comes directly out of your business bank account.

Credit cards earn easy rewards

Credit card rewards exist to encourage you to use your credit card. With a simple flat-rate card that pays the same amount on every purchase, you can get back 1%-5% of every dollar you spend, either as cash or as points or miles to redeem for travel or other things.

As a business, you could earn hundreds if not thousands of dollars a year in cash back for purchases you were going to spend anyway. That improves your bottom line. Money you can place back into your business.

Credit cards help build business credit

Careful use of a business credit card is one of the single best ways to improve your business credit scores. Good business credit opens many financing options.

When you make payments to business credit cards, they will be reported to the major business credit bureaus. This will help build a solid profile, history, and score for your business. Now your business will have a history of making payments on time and prove itself to be a good credit risk. This is important down the road when applying for a business line of credit or loan. Business credit is vital for business growth