Buyer Guide to Business Credit Cards
Business credit cards are becoming the latest trend with small businesses—and for good reason. Business credit cards offer features that allow you to make the necessary purchases needed to keep your business growing, while allowing you to maintain your cash reserve in the bank for other expenses. According to the online small business information website AllBusiness.com, “…more than 65 percent of small businesses utilize business credit cards, and this number continues to rise.” In many ways, the prestige of having a small business credit card helps to promote your business and give it integrity, so people will know you are serious.
A business credit card is used the same way you would use a personal credit card, but caters more to the needs of a business as opposed to an individual; therefore it has features that you may not be able to find with a personal credit card. One example, a business card will have a higher credit limit, which is something needed in a business, but not necessarily needed for an individual. For example, in a business, costs often come in bulk. In other words, as an individual you may need the money to buy a desk, whereas a business will need the money to buy 25 desks. A larger credit limit will give you the means to do this.
Business credit cards also often offer more business-related rewards such as travel discounts. These rewards obviously differ based on the bank you choose to go with. Consider Capital One and American Express. The Capital One ® Venture for Business card offeres10,000 bonus miles after you spend $1.000 in the first three months, while the Business Gold Rewards Card ® from American Express offers 25,000 bonus points each year if you shift $50,000 of your business purchases onto the card. Lucky for you, there are tons of cards to choose from; all with their own rewards. This Buyer Guide includes a chart that explains everything you need to know, including reward opportunities from a variety of different cards, to select the right card for your business.