Business Credit Cards
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Business Credit Cards |
A business credit card is a credit card used by small businesses and corporate entities. Business credit cards allow business owners to manage their purchases for running their company. In some cases, corporate customers might allow trusted employees to use to business credit card to spend on the company’s behalf.
For businesses which are in the start-up phase, a business credit card can come in handy as a source of funds, especially when it is difficult to get business loans from the bank. A small business credit card can help the business owner garner the necessary working capital required on a month on month basis.
Apart from providing a business credit line, these credit cards also offer reward points on using the card which can be redeemed in a variety of ways, including discounts on future purchases. Some of these rewards include frequent flyer miles, gasoline points, hotel points, and gift coupons.
Some of the best business credit card offers are
- : This business VISA card offers 0% APR for 6 months and 1-5 reward points on a variety of purchases. There is no annual fee and you can also get additional cards for your employees with the flexibility to set individual credit limits.
- SM Ultra – For Professionals: This is a business MASTERCARD which offers 0% APR till May 2010. Annual fee is $39. And you get 2 reward miles for every dollar you spend with this card.
- : With an annual fee of $60 and an introductory 0% APR for 6 months, this card offers 2 miles on all purchases and an additional 2 miles if you purchase through ShopDiscover.
- : There is no introductory APR and an annual fee of $75 for this card. However, it offers a number of reward points for purchases and flight miles. This card does not allow balance transfers from another card.
- : This card charges an annual fee of $95 after the first year and offers an instant business credit card decision in less than a minute.
How To Choose A Credit Card For Business
There are 3 things to consider while choosing business credit cards – 1) APR or interest rate, 2) Annual fees and 3) Reward schemes.
Cards that offer a lower APR are preferable since you can afford to delay the payment by a month. If the card offers an introductory 0% APR, it can be quite useful if you are in the early stages of your business. While it is alright to pay an annual fee, you must compare the expense with the possibility of earning reward points. Select a card that gives you the maximum rewards as compared to the annual fee it charges.
In order to prevent an accumulation of debt on your business credit card, it is advisable to plan your payments in advance, specifically by answering the following questions
- Will my income from business be enough to support monthly payment of balances?
- How much debt can I reasonably accumulate on the credit card?
- How much more money than the minimum due should I pay to avoid debt build-up due to interest rates?
Most business credit cards require you to have a good or excellent credit rating. Therefore, it makes sense to approach the same bank which has issued your personal credit card. You can compare the best business credit cards on and send an online application.
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