Infographic: How small-business owners use business credit cards
By Sabrina Karl | Published: June 13, 2017
Data whiz and visual storyteller
About half of small-business owners in the country have a business credit card, and while their purchases on the cards skew a little different than regular consumers, the reasons they applied for the card are largely the same reasons given by non-business owners.
The data comes from TD Bank’s recent survey of over 500 small-business owners whose annual revenue or sales is below $1 million, and found 46 percent of business owners currently hold a business credit card. Although slightly more than half (54 percent) don’t have a business card, 7 percent of respondents indicated they plan to apply for one in the coming year.
Generally speaking, small-business owners reported using the cards for expenses related to their business, with almost three-quarters (74 percent) using the card to buy office supplies. Another common expense on these cards is product and equipment costs, reported by 61 percent of the business card holders. Gas for business vehicles, phone/internet/cable bills and travel expenses rounded out the top five charges to these cards.
Although a low interest rate was the No. 1 reason business owners reported applying for the business card (at 58 percent), a close second at 53 percent was cash back rewards. Thirty-nine percent also cited rewards points as their reason for getting the card.
Ranked as the country’s eighth-largest bank, TD Bank conducted its Small Business Survey at the end of March 2017. Weighting its results from 553 small-business owners nationwide by age, gender and region to reflect the U.S. population, the bank released its report in April.
To use the graphic on your site, use the following code:
- Millennials most likely to monitor credit scores, plan to improve them – The younger generation is more active in keeping tabs on this important financial barometer ...
- Merchants say mobile wallets coming but won't cut fraud – Most retailers and e-tailers believe mobile wallets will be widely adopted in the next five years, but only about a third think mobile payments will cut fraud ...
- Infographic: We may pay with finger, face, eye or voice in 2027 – A survey found that 80 percent of respondents support payment technologies such as fingerprint sensing, facial recognition and retinal scanning ...