Credit cards are a normal part of life today. What started out as an easy way to pay when cash wasn't available has become a standard way to pay for almost anything in the modern world. Credit cards are now widely accepted as the main way to pay for almost everything, from monthly bills and groceries to a new car or sound system.
People who own their own businesses can even use credit cards to pay for the day-to-day overhead costs of running their businesses. But most business owners will have their own credit cards, and it's usually a good idea to have a separate card for the business itself. This is like a business owner having his own bank account and then setting up a separate account for the business to pay for operating costs. Business Credit Cards are a type of credit card made just for this purpose.
When choosing a business credit card, look for some of the following features to help you choose one that will help your business grow.
Interest Rates and Credit Limit: Look at the card's interest rates and make sure that, based on your business's expected monthly expenses and income, they won't put too much strain on your resources. Also, look at the card's credit limit and make sure it's high enough to cover not only the monthly costs of running the business, but also any extra costs that may come up because of a sudden business emergency.
Annual Fees: Some credit cards also have annual fees as part of their cost. This is a charge not only for the card's services, but also for any extra perks and features that come with having the card. Look at the credit card's annual fees and compare them to the features it offers to find the best deal you can.
Introductory rates: Some credit cards also offer purchases made during an introductory period with no interest. Most of the time, the period covered is between 6 months and a year. This is a good thing to think about if the business credit card you're getting is for a new business, as it helps to keep your budget from getting too tight as your business starts to grow.
Security Features: Since business credit cards can be used for more than just personal purchases, many companies give them extra security features to protect them from being stolen, lost, or used without the owner's permission. Check out what the credit card company does to keep your information safe. More is always better.
Merchant discounts: Since running a business usually means working with other businesses, some business credit cards have partnerships with merchants who offer discounts on purchases made with the card. If the credit card you're thinking about offers discounts to merchants, look at the list and see if any of the businesses on it can give you the goods and services you need for your business. These discounts can help you cut down on your overhead costs and boost your long-term profits.
Lastly, check out the reward programmes that the business credit card has to offer. Reward programmes let cardholders earn points for purchases they make with the card. These points can then be redeemed for different prizes that can help your business. Some credit cards, for example, let you earn airline points, which can be very useful if your company wants to send people abroad. Check out the rewards you can get for using the credit card, and if you can, make sure they fit in with how your business works.
The tips above aren't just for business credit cards; they can be used with any credit card. But they take on a whole new meaning when the card isn't just for one person but is being used to help a business that is alive and well.
