Business Credit Card
Which credit card is best for your business?
Because so little business is done in cash these days, most companies acquire business credit cards to make business-related purchases, such as payments for new supplies or equipment, travel and transportation, or expenses associated with the expansion of the company.
But why else might a business decide to distribute credit cards to executives, managers or other employees? Besides convenience and efficiency, a credit card can help a company earn certain kinds of perks. For example, if a business signs up for a credit card account where each purchase leads to the accumulation of air miles, the cost of future trips across the country or overseas may be covered. In other programs, a business may actually earn cash back—sometimes over 1 percent cash back on all purchases—a potential savings of thousands of dollars over a year.
Other business reward credit cards may offer a very high or even no credit limit as part of their incentive program, but this depends largely on the credit history of the business involved. Other bonus programs may include a 0 percent introductory interest rate or advanced management systems for expenses. The best business credit card to choose will be the one that offers a combination of the most advantageous rewards program and credit limit for your company.
Small Business Credit Cards
Even small businesses should have a credit card. It is important for every business to have credit available in order to make necessary purchases quickly and efficiently. Often, the business world is just too fast for loan applications. In addition, if new growth opportunities emerge, small business credit cards can help companies act quickly to purchase new supplies, office space, etc. Business credit cards are also useful for keeping track of purchases, since many credit card companies offer advanced management systems for monitoring employee purchases and direct payments to suppliers, which is a great bookkeeping tool.
Because some small business owners have trouble getting a new business credit card immediately after starting their company, acquiring a card may require the use of personal credit. The demonstration of a strong personal credit history may be enough to get that lucrative business credit card offer.