Debit vs Credit card for small business

penguinz0329

Hey everyone,

I'm currently looking at getting a credit card for my small business with my bank (Monzo), however I was wondering if it is worth it or not and if I should just stick with my current debit card?

I've heard that there are benefits that do come like no travel fees and making it easier to break down each bill, which is especially useful for someone with a business like myself?

Any help or advice is greatly appreciated xxx

DullGreyGuy

penguinz0329 said:

Hey everyone,

I'm currently looking at getting a credit card for my small business with my bank (Monzo), however I was wondering if it is worth it or not and if I should just stick with my current debit card?

I've heard that there are benefits that do come like no travel fees and making it easier to break down each bill, which is especially useful for someone with a business like myself?

Any help or advice is greatly appreciated xxx

No travel fees cards are available for both debit cards and credit cards and bills are equally broken down for both. 

People being naughty and using their main personal account for both their personal banking and their sole trader business may find having a separate card makes life easier as all expenses are discretely listed but again the same is achieved and more by not being naughty and having a dedicated business account. 

Are you a sole trader or do you have a limited company? 

penguinz0329

DullGreyGuy said:

penguinz0329 said:

Hey everyone,

I'm currently looking at getting a credit card for my small business with my bank (Monzo), however I was wondering if it is worth it or not and if I should just stick with my current debit card?

I've heard that there are benefits that do come like no travel fees and making it easier to break down each bill, which is especially useful for someone with a business like myself?

Any help or advice is greatly appreciated xxx

No travel fees cards are available for both debit cards and credit cards and bills are equally broken down for both. 

People being naughty and using their main personal account for both their personal banking and their sole trader business may find having a separate card makes life easier as all expenses are discretely listed but again the same is achieved and more by not being naughty and having a dedicated business account. 

Are you a sole trader or do you have a limited company? 

I currently have a limited company setup for my small wholesale business. xxx

DullGreyGuy

Ultimately, speak to your accountant. 

Many will use a personal credit card if they want to get rewards/cashback etc and then expense it to the company but then this can technically cause some problems with VAT hence get the accountants on board. 

Others may take a high fee reward card and have it in the company's name so that the fee for the card is tax deductible, almost all the Centurion card holders I know have a company card rather than personal. 

Obviously also depends if the company needs the credit for cashflow purposes or not.