- Business and Employment
Choosing the Best Credit Card for Your Business
The Advantages of Business Credit Cards
If you have a business, a great way to keep track of your business expenses and also to improve your spending power is to use business credit cards. Depending on the size of your business, you could have several business cards on the same account, which you can then give to your more important members of staff for their expenses: This allows you to easily keep track of everything they spend, and in addition you gain the advantage that many business cards allow you to participate in a cash back scheme or a similar rewards scheme; this pays you in cash or points every time a member of your staff spends money on the card.
For a variety of reasons many small businesses do not have a credit card specifically for the business, but rather the owner will continue to use his personal credit card to make business purchases.
It could be that the business owner is worried that he may overspend if he has a credit card, or might think applying for a business card is complicated and he will need to provide a lot of information. Other business owners might also think that they do not spend enough to be issued a business card and that they would be denied if they applied.
In fact this is not an optimal plan because the small business is missing out on the many advantages that a business credit card offers.
Types of Business Credit Cards
Just about all of the banks and major credit card companies offer incentives with their credit cards for both private users and businesses. This is to attract more customers and stay ahead of competitors, however when you are choosing a credit card the wide choice of offers can make it difficult to decide which card is best for you.
Business credit cards are available in different colours just like private credit cards, which indicate the advantages of the card and its value. You will usually find gold, platinum and also black credit cards that have varying advantages and annual fees associated with them.
Examples of Business Credit Card Deals
The offers available with business credit cards and cash back credit cards are constantly changing, but an example of what you might find when searching for a new card is that there may not be any annual fee, or fees may a very high, while interest rates can vary between around 12% and as much as 20%, or even higher. A business credit card might offer you 5% cash back whenever you purchase office or telecommunications equipment, 3% cash back on petrol, and 1% cash back on anything else that you purchase with the card.
The above example is very closely related to an offer that was recently given to businesses from the American Express Company: This is a typical kind of credit card deal that a business owner can expect.