Business credit cards are invaluable to small business owners. They provide a way to make the accounting as easy as possible, they improve cash flow, they offer rewards and they provide a way to fund business needs. Part of the process for applying for a business credit card is knowing how to choose the best one for your business. This article explores some of the things that you should do if you want to get the best business credit card for your business.
Check The Interest Rates
This is a most important consideration when choosing a business credit card. If you do not plan to pay off your credit card balance before the end of the grace period you will need to pay special attention to the APR of the credit card that you do decide on. Look for cards that offer low interest rates so that you are not stuck paying huge finance charges on the money that you borrow. At first glance the cards that offer low introductory rates might be appealing but do not get so attracted to them that you do not observe the rate that you are expected to pay once that period is over.
Check The Other Credit Card Fees On The Program
Other fees like annual fees and any particular fees that the credit card issuer chooses to include can cut into any savings that you expect to get with the card. In fact the fees on some cards can be so unrealistic that you would be better off going without a business credit card. Check the type of fees and the amount hat is charged before you sign on. It might be possible to deduct some fees as a business expense so keep this in mind when you evaluate your options.
Consider Reward Type Business Credit Cards
If you can maintain a low balance or pay off your balance monthly then you should also take reward type credit cards into consideration. Since you will have a low balance or no balance at balance at all the high interest rates that accompany reward credit cards will not matter too much since you won’t have to deal with them.
You will need to consider the type of rewards that will most benefit your business. Do you travel a lot? Then airline miles, gas station or hotel reward cards may be most beneficial. If you prefer discounts on business services or products then search for a card that provides this type of rewards. Alternatively you might prefer cash back rewards that you can use to pay off bills or reward employees at the end of the year. The point here is to carefully consider the type of rewards that you need in order to choose the best business credit card.
Business Expense Tracking
Another valuable feature of small business credit cards is the ability to track your business expenses. If getting a detailed snapshot of your spending is important to you then you will need to get a card that will give you some control over the structure of the report that you receive. Some options include categorized reporting, availability of the detailed reports online where you can download in a format that makes it easy to import into your accounting program.
Supplementary Business Credit Cards
Check into the supplementary services offered by the business credit card provider if you will need to order extra cards for your employees. Would you be expected to pay an extra fee to get them? Do they limit the number of cards that you are allowed? Can you set the spending limit on each card? These are all things to consider when choosing the best business credit cards.
Miscellaneous Points To Consider
Some other things to consider include whether the card is widely accepted, whether the card offers travel insurance, purchase insurance and car rental insurance if you travel a lot, the sort of partners that they are affiliated with and just whether the card feels like it is the best fit for you. If customer care is top on your list you should look at the options available for contacting the provider like 24/7 phone service, email, online forms and chats.
Compare the business credit card offers and terms and see how the offerings fit with your unique business needs so that you are assured of getting the best business credit card.