Business, small or big are increasingly depending on business
credit cards for various financial activities related to the business. The ease,
manageability and savings they bring to any organization makes them
indispensable. Getting the right business credit card for your small business is
not a big task if you keep these three things in mind.
will you use it?
Are you going for rewards associated with the business credit card, or want
discounts offered on business supplies. Do you fly frequently, and want to get
deals on hotel stay and airmiles? Business credit card come with a variety of
options. If you have your priorities clear it will greatly help you get the
right business credit card.
2. What are the interest rates and other fees?
A 0% Intro APR Business credit card with low interest rates on balance
transfers, purchases etc. would be a good credit card to start with. Check out
the APR, Annual fees, cash withdrawal fees, late payment penalties, minimum
monthly payment requirements, balance transfer fees and whether the credit can
be revolved or not. Compare different credit cards which offer the
features you want and settle for the one that costs the minimum. If you
want a business credit card that can be given to the whole organization or your
employees make sure that the credit card has this feature and doesn't charge you
much on taking additional cards. Taking these points into consideration will
ensure that you pay the least amount to the credit card company.
3. What are the restrictions and other fine prints?
The rewards might be very attractive but credit card companies apply
restrictions such as blackout dates, limits on reward points that can be earned
during a year, expiry of reward options after a certain period etc. These
restrictions can kill the reward benefits. Stay clear from credit cards which
apply restrictions. Also, written in fine prints are terms that if ignored
could cost a lot in terms of money and mental peace. It is particularly advised
to read them carefully and understand their implications on credit card
ownership. If you have any doubt get it cleared by all means.
Business credit cards are especially designed for business purposes and must
be used as such. Using a business credit card for personal expenses might hurt
in the long run and violates the basic principle of separating the business and
personal finance. If the right card is selected and used properly the business
credit card can be a vital asset for your small business success.