Credit Cards for Small Business

Credit Cards for Small Business

There are several options when looking at credit cards for small business. Trying to work out what the best business credit cards are for your company can save you a lot of money over the years.

Business credit card offers seem to cover just about every option, The first thing to consider is the purpose of the card itself. Let’s take a tour of some choices:

Travel Incentive Credit Cards for Small Business

A Travel Incentive card can transmute your business expenses into beneficial travel rewards. These kinds of credit cards for small business are offered by a plethora of card companies and local banks, which can make choosing one a rather daunting task. The best way to make an informed decision is to find out the relative dollar value of the points themselves when redeemed in the way you will most commonly spend them.

Credit Cards for Small BusinessThe value of travel incentive points is not a set constant, this point can not be stressed enough. Many loyalty points can be used in a variety of ways and can have a vastly contrasting point/dollars ratio. Spending 100 points on, say, a coffee gift card may net you a per point value of 20 cents per point; whereas spending the same hundred points on a flight to Denmark might give you an entirely different value. Ask the representative to break down the best use of points for you, or better yet, read the details yourself.

Insured Credit Cards for Small Business

An insured card is a solid choice for a card you intend to put in the hands of your field employees. The degree and type of insurance protection varies wildly and should be discussed with your issuer. More common insured cards offer protection against fraud and identity theft. Some are even insured against intentional employee theft. Insured cards will typically have a higher interest rate than other cards.

Specialized Loyalty Credit Cards for Small Business

Some companies, building supply chains for example, are now offering rewards credit cards for their customers and can offer some of the best small business rewards possible. Generally these cards are handled by major providers, such as Visa or MasterCard; however, some in house cards do exist. Rewards for using store specific loyalty cards tend to have the higher point/dollar conversion value and can even go so far as to offer percentage discounts on goods.

Cards Linked to an Existing Line of Credit

Linking your card to an existing line of credit can make tracking overall expenses far easier, particularly in the case of multiple cardholders where invoicing and repayments would have to be handled separately. Quick access and ease of use are the key selling points, especially with regard to automatic renewal which is commonly offered. Other types of business cards can require more lengthy reapplications for renewals.

Credit Cards for Small Business

Potential Pitfalls

Credit cards for small business, while a major convenience, are usually offered at a higher rate of interest due to the more risky nature of the entrepreneur’s business, as opposed to that of the larger corporations. Operating with a month to month balance remaining on the card can hurt your profits. Try to pay your balances on time to avoid a raised interest rate and other penalty fees.

If you must carry a balance then consider linking your card to a more economical line of credit.Credit cards for small business are not always the answer but it is certainly worth investigating.

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