Why Small Business Owners Should Use a Corporate Card: Lessons from My Time at American Express

Running a small business is not easy. I know this because I used to work for American Express as a Senior Business Development Officer. My job was to help small business owners apply for the American Express Corporate Card for Small Business. During my time there, I met many business owners who made a big mistake: they used their personal credit cards for business expenses.

If you are a small business owner, I want to tell you this—stop using your personal card for business. It’s time to separate your business and personal finances. Let me explain why.

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Why You Should Not Use a Personal Credit Card for Business

Many small business owners start their business with limited funds. It’s common to grab the nearest credit card in your wallet—usually your personal one. This seems easy at first. But over time, it becomes a problem.

Here’s why:

1. Mixing personal and business expenses is confusing.
   When it’s tax time, it’s hard to know which expenses were for business and which were personal.

2. It affects your personal credit score.
   If your business runs up a big balance and you’re late making payments, your personal credit score will drop. This could make it harder for you to get a personal loan, car loan, or mortgage later.

3. You limit your business growth.
   If your business does well and grows, you will need bigger credit lines and business-focused financial tools. Personal cards don’t give you that.

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Why a Corporate Card for Small Business is Better

A corporate card, like the American Express Corporate Card for Small Business, is designed with business owners in mind. It’s not tied to your personal credit (although in some cases, they may still look at your credit during the application). The corporate card reports under your business name.

Benefits of a corporate card:

• It builds your business credit history.
  If you pay on time, you build good business credit. This helps when you want to apply for business loans in the future.

• It keeps your personal and business expenses separate.
  This makes bookkeeping and tax filing much easier.

• You get business rewards and perks.
  Corporate cards often come with cash back, points, or travel rewards that help business owners.

• It gives you higher credit limits.
  Business expenses are usually bigger than personal expenses. Corporate cards offer larger limits if your business qualifies.

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Not Everyone Gets Approved: What I Saw at American Express

When I worked at American Express, I saw how many small business owners wanted this card. They knew it was a great tool for business. But here’s the truth—not everyone was approved.

The American Express Corporate Card for Small Business was not easy to get. Many business owners applied, but many were declined.

Here’s why:

• Low business revenue.
  If your business wasn’t making enough money, it was hard to get approved.

• High debt-to-income ratio.
  If you had too much debt compared to your income, it raised a red flag.

• Poor personal credit history.
  Even though the card is for your business, many issuers (including Amex) still checked the business owner’s personal credit.

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Tips to Help You Qualify for a Corporate Card

If you want a corporate card for your business, here are important tips I used to give small business owners:

1. Keep Your Debt-to-Income Ratio Low (Below 20%)
   Your debt-to-income ratio (DTI) shows how much debt you have compared to your income. If your business is already using too much credit, lenders may think you’re a risk. A good rule: Keep your debt at 20% or less of your income.

2. Show Healthy Cash Flow
   Lenders like to see that your business brings in regular income and has money left after paying expenses. Keep good records of your monthly revenue and expenses.

3. Pay All Your Bills On Time
   Nothing scares lenders more than late payments. Always pay at least the minimum balance before the due date. Better yet—pay the full balance every month. This shows you are responsible with credit.

4. Separate Business from Personal
   Even before you get a corporate card, open a separate business bank account. Use it for all business-related income and expenses. This shows you’re serious about managing your business properly.

5. Keep Good Business Records
   Save your financial statements, tax returns, and profit & loss reports. You’ll need these when applying for business credit cards or loans.

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What to Do If You Get Declined

If you apply and get declined, don’t panic. It doesn’t mean your business is a failure. It just means you’re not ready yet.

Here’s what you can do:

• Ask why you were declined.
  Most credit card issuers will give you a reason.

• Work on your weaknesses.
  If the issue was too much debt, work on paying it down. If it was low revenue, focus on growing your sales.

• Reapply later.
  Once your business finances improve, you can try again.

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Final Thoughts: It’s Time to Level Up Your Business

Using a corporate card for your business is a smart move. It helps protect your personal credit, builds your business credit, and makes accounting easier.

When I worked at American Express, I saw many small business owners struggle to separate personal and business finances. They often didn’t realize the damage it caused until it was too late.

But you don’t have to make the same mistake. Start taking steps today to build your business credit, manage your cash flow, and keep your finances healthy.

When the time comes, apply for that corporate card with confidence. It’s more than just a piece of plastic—it’s a tool to help your business grow.

The book is now available in my Amazon Store.