Are you a business owner looking for a great credit card to help you on a monthly basis?
Running a business can be a very expensive undertaking, which is why having the financial cushion and convenience offered by a credit card is a great idea. There are so many different institutions out there that offer these cards, which is why you have to do your homework before making a selection. Trying to choose the best credit cards out there without this type of research will generally lead to a number of problems. Rushing through an important financial decision like this may end in you getting a card that hinders you rather than helps. Read below to find out about some of the things you need to look for in a business credit card.
1. Get To Know the Basics of Business Credit Cards
Before you are able to make a decision regarding the business credit cards on the market, you need to find out more about the. There are a few basics you need to know regarding business credit cards like:
- These types of cards should only be used for your business expenses and never for your personal endeavors.
- The CARD Act only offers protection to consumers and not businesses. This means you will need to pay attention to when your payments are due to avoid any hits to your credit.
- Usually, a business credit card comes with a higher credit limit. This can be helpful if you make a lot of purchases each month. These higher credit limits can also create problems if you fail to exercise some restraint.
- Most business credit cards will allow you to authorize multiple users. This is beneficial if you are going to give employees cards to use on office expenses.
Once you are familiar with the differences between regular credit cards and business credit cards, you will be able to start narrowing down the selection you have.
2. How Much Are You Spending on Business Expenditures Monthly?
Finding out how much you are currently spending on business expenditures each money is also important before choosing a credit card. By taking a look at your company’s books for over the last six months, you can get an idea of what is routinely spent. Once you have this number, you can start narrowing down the business credit cards at your disposal based on the credit limit they offer. If you like the terms a particular card is offering, you may want to call the financial institution that backs it to see if they can meet your credit limit needs.
3. What is Your Company’s Lifestyle?
When trying to choose the right business credit card, you should also contemplate what your “business lifestyle” is. Do you and your employees do a lot of traveling on a regular basis? If so, finding a credit card that offers travel rewards is a great idea. If your business requires you to use a lot of fuel, you should look for a card that offers fuel perks. Regardless of what your “business lifestyle” is, you should be able to find a credit card to match the unique needs you have.
4. Check the Annual Fees
There are a number of business credit cards out there that charge an annual fee. In some cases, the fee that is being charged will be minimal, especially when compared to the credit limit a card has. Taking some time to look at all of the fees a credit card company is going to charge is vital. Once you have this information, you should have no problem narrowing down the various cards that are being offered to your company.
The last thing you need to do is avoid researching all of the cards out there due to the bad decisions this can lead to. Consulting with an accountant is a great way to get in-depth information on the type of card your business can benefit from.