Benfits of a Business Credit Card
If you have just opened a new business, you may be feeling a little reluctant to get a business credit card. Chances are you’ve just taken out a large business loan, a personal loan and may have even refinanced your home, so the idea of incurring more debt might leave you feeling a little queasy. Well, that is normal and once you overcome any debt fear you may be battling, getting a business credit card can actually be very beneficial for your business.
The Benefits of a Business Credit Card
Opening up a business credit card when you are just starting up your business can be very helpful. Often times there are some additional expenses that need covering until you start to receive payment from customers and that is when a credit card can be useful. You can purchase all the little thing need around an office or treat potential clients to lunch. Also as long as you make your minimum payment on time you will begin to build your businesses credit score.
Something else that may be appealing about a business credit card is bookkeeping ease. If you were to use a credit card to pay for all or nearly all of your business expenses then at the end of the month (or whatever time your statement arrives) you will not have to write so many different checks. With a credit card for your new business, you can also delegate the buying of supplies and other mundane things to an office helper by getting them an additional. Just make sure they are a trustworthy person and put a cap on the amount they are aloud to charge.
Opening a Credit Card
Opening a credit card for your new business can seem a bit scary or daunting, but in the end it can be very beneficial. You simply need to be smart and not get carried away with the amount you are charging. The credit card is meant to be a help and a way for your business to build credit, not an easy solution each time you need something for your company. Like many other things, having a business credit card simply requires responsibility and moderation.
Credit Cards for Businesses
1. Capital One- No Hassel Miles Ultra- for Professionals (Master Card): This particular credit card is for businesses only and can help you begin to build up your credit. This Capital One card also offers a travel point system, giving you two miles for every dollar spent on a purchase. This is especially great for business people who have to travel frequently. They have an annual fee of $39 and late fees that range from $15-$39.
2. AT&T Universal Rewards Visa Card: This is also a credit card that is for businesses only and is great if you do want some general rewards. They offer anywhere from 1-5 reward points when you purchase anything from office supplies to gas. They also offer additional cards for employees, over which you can control the limit. They have no annual fee and a late fee that ranges anywhere from $15-$39.
3. American Express Business Credit Cards: American Express offers many different types of business cards for small companies. They all come with rewards and perks that vary between racking up reward points, traveling benefits, and discounted purchases at certain dealers. Using an American Express credit card for your company can also save your company anywhere from 3-25% on business related expenses. Many of the small business credit cards do not have a pre-set spending limit, but instead will adjust according to your spending and paying habits. You may also be required to pay the full amount due each month rather than a bare minimum percentage. Be sure to establish this fact before applying for any card.
4. Discover Business Credit Cards: Like American Express, they too offer more than one type of business card. When choosing which card would best suit your business need you should consider the perks and rewards. Some cards offer straight points for gas, office supplies and other misc. purchases, while other cards offer travel points. So if you do a lot of traveling then the one helping you to earn travel points may suit your needs better. They do not charge an annual fee.
