There are a lot of credit card companies out there these days that offer business credit cards. Some with lucrative offers and benefits to lure the prospective business owner to choose their card. A recent study of major credit card companies revealed that using business credit cards is advantageous in many ways, if you are either a home based, small or large business owner. When used properly, business credit cards can help you save money.
Most business credit cards will usually come with a comparatively low Annual Percent Rate (APR), usually starting at around 7%. Some standard issue business credit cards will also come with an introductory period of 0% APR. Most of these cards will provide a quarterly, as well as an annual balance summary. These business credit cards serve as excellent tools to balance your business expenditures efficiently. Some of these cards will also reward the user with offers such as free frequent flier miles, that can directly help a business. You can effectively reduce your business specific expenses by choosing and using the right card.
Comparing Business Credit Cards
Companies that offer business credit cards will usually advertise prominent promotions using different methods. Some of these promos may include:
* A Points Reward System- These reward points can be used at different vendor locations, for buying office supplies or equipment.
* No Spending Limit- One advantage business credit card holders have is no spending limits, which can be an advantage if used properly.
* Low Interest Rates- Low interest rates will allow business owners to pay just nominal interest rate fees.
* Flexible PayBack – This saves the business credit card owners the flexibility and option of paying the balance on their purchases.
Some Advantages Of Owning A Business Credit Card
There are several distinct advantages of owning a business card:
* Business credit cards have no limit or flexible credit limits. So business owners can have enough time to consolidate their spending, and be able to sustain their business. The extra credit provided to the business users are required to be paid at the end of the fixed term, which gives them ample time and opportunity to stabilize their business if required.
* Business credit cards will offer relevant rewards such as: frequent flier airline miles, free hotel accommodations or cash back incentives. Some other benefits may include 0% APR during the initial period, no annual fees; overall lower APR rates or discounts on selected purchases.
* The expense reports that are generated by the business credit cards will provide business owners with automatic record keeping of personal and business expenditures. Employers can track expenses used by their employees and some larger corporations are allowed group rate discounts on their business credit cards, which can be used as employee benefits.
* Bad credit can be dealt effectively by just paying the outstanding balance on the card promptly, thus avoiding any debts. Business credit card users should always maintain a good credit record with these companies for gaining larger credit limits.
* Business credit cards can make business travel easier. People who frequently go on business trips don’t need to carry extra cash for paying for their various travel expenses.
* Business owners can enjoy the added benefits of the incentives offered by the card companies. Thus, choosing the best business credit card amongst the ones that are available.
Some Tips For Selecting The Perfect Business Credit Card
Make sure you select business credit cards that will offer long-term low interest rates. Choose cards that offer low rates for the entire life of the business card.
Compare the various business credit cards and decide which ones meet your particular needs. Credit cards with a low introductory 0.00% APR can be great for business owners that plan to pay the entire balance in full every month. Make sure you find a card that has a ‘no limit’ option on their particular cash back program. Some cards will allow business owners to pay back their accumulated debt over a period time, or pay off their balance monthly in full.
When looking for the perfect business credit card that suits your needs, make sure you study the various companies out there that offers the best rates, as well as the best benefits that suit your business needs. Search for companies that will provide comparisons of the various credit cards that are offered on the market.