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Determine if you’re ready for what a business credit card offers

The freelancing journey usually looks something like this:

Take on your first client.


Start generating a steady income.


Form a business entity.


Get a business bank account.


Get a business credit card. 👈You’re here


Expand your freelancing empire.

If you’re pursuing a business credit card, you don’t necessarily need to check these milestones off in order. However, it’s a smart business move to think about these steps in tandem.

 A business credit card can offer you major benefits, which can ultimately lead to a more prosperous freelancing business.

A rundown of what a business credit card can do for you as a freelancer:

💳 Separate your business and personal finances: This makes tax time way easier. You can easily organize expenses and make clear deductions to save time and money. Plus, your accountant can get your taxes done faster and more easily.

💳 Optimize cash flow: Pay for business expenses later (without missing payment deadlines, of course) and earn cash back or other capital offerings. You’ll have more wiggle room in your bank account, which helps you avoid overdrafting or missing payment obligations.

💳 Allow for growth opportunities: You have the ability to purchase a course, conference ticket, or another opportunity on credit. Networking and education can be huge for your business. You can also grow into an agency model (if that’s your goal) or simply leave the option to scale open. Implementing an agency model requires paying subcontractors, which you can do with a credit card.

💳 Receive perks and bonuses: Travel rewards can help fund those trips to conferences or other events. Credit card companies can also approve you for financing opportunities like lines of credit or small business loans, which can help you reach goals (from funding book research to starting a creative studio in your community or any other aspiration!).

💳 Professionalize your business: Freelancing has the benefit of low startup costs, but expenses change as you grow. When you pay with a business credit card, you seem more legitimate to the people you do business with. Plus, more professionalism can add to your confidence; you still must act to reach your goals, but confidence can push you in the right direction.

💳 Build business credit: This is important if you ever want to expand, pivot under the same entity, or secure business financing. Building business credit is a major foundation for any future ventures you pursue. Business finance management platform Nav says a good business credit score is 80–100

Are you ready for what a credit card can offer your business? Let’s find out!

Assess your monthly spending and decide if a credit card will help you make purchases

One way to determine if your freelancing operation is ready for a credit card is to categorize your spending. By assessing your monthly spending you can make an educated decision if a credit card will help you make purchases.

Consider two versions of your monthly business expenses:

  • Last month’s actual spend.

  • A hopeful month’s spend including transactions you may choose to complete if you had a business credit card (such as a recurring software subscription you don’t want to pay for out of pocket).

In your workbook, go through the table below and check off any categories you spent money in before getting a business credit card and then check off any categories where you’d predict you’d spend money with a business credit card.

Here is a list of the categories:

  • Home office supplies

  • Work-related car expenses

  • Education

  • Computer and technology

  • Website and hosting

  • Business insurance

  • Health insurance

  • Invoicing software

  • Project management software

  • Co-working membership

  • Business entity formation

  • Virtual assistant

There is no strict number of categories you need to check off to determine if you need a business credit card. Rather, this will help you visualize whether a business credit card will help you grow your business by opening up certain purchases or streamlining cash flow. However, we recommend considering a business credit card if you check off more than 4 categories.

Step recap

  • Visualized where a credit card naturally fits into the freelancing business owner’s journey.

  • Weighed the responsibilities that come with owning a credit card with the opportunities it can provide your business—prompting you to reflect on the balancing act of freelancing finances.

  • After assessing your own spending, you determined whether you’re ready to proceed with a business credit card.

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