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Day by day business credit cards are becoming popular. If used properly small business can enjoy a lot of benefits out of small business cards. This article contains the following information on small business cards
What are the points to be analyzed before going in for business credit cards?
What are the various business credit cards?
Is My Business Established?
In most cases, credit cards are best if you already have a business set up. Otherwise, you may be stuck with very high credit card interest rates and no profits to pay the debt off. If you need money to set up your company, credit lines or new business loans offer more flexible repayment plans and lower rates.
Can I Afford To Pay My Credit Card Bill Each Month From My Profits?
If you cannot, you may wish to seek other forms of financing. Since many business credit cards tend to carry higher limits, you may end up paying a lot of money in interest if you carry a balance.
Do I Need to Keep Track Of Spending?
Business credit cards are an ideal way to keep track of business spending and employee spending, as they leave a paper trail that you can easily check and confirm.
Do I Travel A Lot Or Make Repeat Purchases For My Business?
Business credit cards can make it easier for you to pay your bills when traveling and can make repeat purchases automatic, saving you time and paperwork.
Types Of Credit Cards For Businesses
If, after reflection, you decide that your business could benefit from business credit cards, you need to compare business credit cards carefully to find the offers best for you. Before you begin comparing concrete offers, though, you need to make certain that you understand the many types of business cards available:
- Reward business credit cards
These types of credit cards allow businesses to not only make purchases, but also to accumulate points. Businesses can use the points towards a range of products and services. Depending on the terms of the credit card reward program, the rewards can range from free travel to business products.
- Secured business credit cards
These types of credit cards make use of collateral in order to ensure that the card debt is repaid. Small businesses can use property, cars, or other assets as collateral. If you or your business have poor credit or large debt loads already, a secured business credit card can ensure that you are able to get credit.
- Unsecured business credit cards
If you do not have a secured card, then you likely have an unsecured business credit card. No collateral is used in this type of credit card. On the one hand, this means that none of your assets are at risk. On the other hand, you may be faced with higher interest rates.
- New business credit cards
Credit cards created especially for new businesses tend to be similar to small business credit cards. However, these cards also tend to have very low or even 0% introductory rates for up to a year or more. This allows a business to get started before having to repay a loan.
- Corporate cards
Large companies, large non-profit groups and even government agencies make use of corporate credit cards. These cards are often custom-designed by credit card companies to have large credit limits and specialized features. If your business consists of more than 100 employees, you may qualify for a corporate card as well.
- Airline business credit cards
These types of credit cards allow businesses to accumulate frequent flyer miles and even points toward entertainment with every purchase made. If your business necessitates a lot of travel, this type of card can help ensure that you get some free trips and flights.
- Cash back business credit cards
These cards allow businesses to accumulate points with every purchase made. Once enough points are amassed, businesses are credited a certain amount of money.
- Small business credit cards
These cards are designed especially for small businesses. Often, they feature generous credit limits, and special accounting features that make bookkeeping simple. Some small business credit cards also let companies have a specific number of employee credit cards.
- No-limit business credit cards
These cards do not have pre-set credit limits. If your business expenses tend to fluctuate, you can use this type of card to keep up with your expenses without having to worry that you will exceed your credit limit.
- Partnership business credit cards
These cards have merchant tie-ins or partnerships. This means that the card companies sign an agreement with merchants. The merchants then agree to provide discounts or special privileges to credit card customers.
- Low interest business credit cards
These credit cards have low introductory interest rates – as low as 0%. Depending on the card, you may enjoy this rate for 6 months, a year, or even more. After that time, you will need to start paying the regular credit card interest rate on any balance you have.