There are so many credit cards for businesses available, so choosing the right one may be a confusing task. You want to find a card that is right for your business and makes it easier for you to be able to quickly reimburse employees. There are several things that you need to known when getting a business credit card:

1. Look for a card with rewards: There are many cards that offer extra bonuses for purchases made. You could possibly receive discounts on flights and hotels, as well as reward points. There are cash back credit cards in which you can receive cash back for every purchase that you make with the card. If your company travels a lot, it makes sense to get a credit card that has a rewards program.
2. Save with a balance transfer: There are several cards that offer a 0% balance transfer rate. You need to make sure that you know when the period ends, as some only offer the rate for the first few months. It’s also important to know what the interest rate reverts to, which is typically either the standard purchase or cash advance rate.
3. Factor in the cost of the annual fee: Credit cards that do not charge an annual fee sound very appealing. However, you need to look at the other charges that might occur when having a card with no annual fee. Some cards with an annual fee might offer better benefits; therefore, the annual fee could be worth the cost. Cards with an annual fee also provide a longer grace period, which will give you extra time to make payments. If you do settle on a rewards credit card for businesses, then you’ll most likely be charged an annual fee.
4. Look at the interest rate: Some banks might try to entice you by offering a 0% interest rate for the first few months on balance transfers and/or purchases. Some cards might offer a fixed rate, which cannot be raised. Interest rates on business credit cards are normally a little higher than those for consumers, and a few percentage points can make a significant difference in the amount of money that you pay. You should also take into consideration how a business credit card reports credit. Some companies can influence your personal credit; therefore, your credit score could determine the amount of interest that you will pay. However, if you plan to pay off the balances each month, the interest rates are not as important.
5. Customer service is really important: There is a good chance that you will encounter problems somewhere along the way, e.g. you max out the credit limit on your card or the account is frozen due to possible fraudulent activity. If problems with your card arise, you will need to make sure that you have a customer service team who will work with you to quickly fix any issues that might occur. Many websites have customer satisfaction ratings in which you can view what other people are saying about a particular card, which is one way to see what’s you’d be getting in to.

Business credit cards can be very beneficial in helping manage your business’s cash flow, but getting the best business credit card that suits your needs requires research before you hit the apply button!

This is a guest post by David Boyd. David is co-founder of CreditCardCompare.com.au where he has reviewed many of the top company credit cards available to Australian small to large businesses.

Bookmark It

Hide Sites