In any business, whether large or small, business credit cards can make taking care of your finances much easier. Business credit cards make your business life easier by helping you streamline your business spending and giving you added perks. Like personal credit cards, business credit cards have low introductory rates, a line of credit, perks and rewards; but business credit cards usually have more of everything. How do you choose the right card for your company from among all the business credit cards on the market?
Easily Managed
Business credit cards work much like personal credit cards, but business credit cards are generally more easily managed. Business credit cards offer many financial streamlining traits to please the efficient business person.
You have the option to give the business credit card to every qualified employee for use in company purchases. This eliminates the need for messy receipt saving, turning-in and follow-up when employees use their own credit cards and accounts. If you have business credit cards for your employees, they can use the cards for business spending, and all expenditures end up on the same bill.
With multiple employees possessing business credit cards, you may worry about certain employees overspending or abusing the privilege of the cards. Business credit cards help you dispel this fear, because you can track the spending of each employee on your company’s account.
Some business credit cards offer statement breakdowns, account management and bill pay online. This technologically enhanced integration helps companies take care of their finances with amazing ease.
Bonuses
Business credit cards come with many added bonuses and perks. Some cards offer rewards in the form of airline miles or merchandise credit with a particular company. You may want to consider using these miles or merchandise credits in the form of rewards or incentives for your employees. Other business credit cards give discounts on shipping or rebates on products you spend most of your money on, such as computers or gas.
How to Choose
Evaluate business credit cards like you would evaluate personal credit cards. Shop around for the card that fits the needs of your company. It may not be the first credit card offer you receive in the mail.
Look at the annual fee for the cards. Some cards have low or no annual fees, but they have higher interest rates and fewer perks. Other business credit cards may have a nice combination of everything.
Evaluate the interest rate. If you plan to carry a balance on the card each month, it is important to have a card that offers your company a low interest rate on outstanding balances. Be sure to read the fine print. Some business credit cards will have a low introductory rate, but then the interest rate jumps after the introductory period ends.
Also look at the credit line offered by the various cards. Business credit cards generally offer a longer line of credit than personal credit cards, but try to find a card that meets the needs of your company, while balancing the interest rate and annual fees.
You also might choose your business credit card based on the perks your company can use. If your company uses the credit card mostly for gas, you might decide to choose a card that offers rebates on gas. If you want to use travel incentives for your employees, you might decide to use a business credit card that offers travel rewards.
By D. Blair Thompson
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