Small business credit cards are a very useful tool especially to small and new businesses. These are basically credit cards given to businesses for the funding of basic business needs. Given the difficulty experienced with getting small business loans from banks, this cards come in very handle. Your business can start off now with a small business credit card.
The first stage of course is applying for a small business credit card. There are a lot of companies ready to give you a card. Because of the competition amongst them, it is easy for you to get great deals. You can actually find interest rates that would be close if not equal to the rates charged by banks for small business loans. Do not forget that you can easily apply for it. In fact, you can apply for one online now.
I am not trying to tell you that you are sure of being approved for any and every small business credit card you apply for. There are certain requirements which would differ from company to company. In most cases, you would have to prove that you are a business and this certainly makes sense. You can not compare the process you would have to go through to get a small business credit card to what you would be put through when trying to get a small business loan from a bank.
Some advantages of getting a small business credit card include:
Funds When You need It: You do not have to wait for ever to get a loan from a bank to start off your business. You can start off your business using a small business credit card to buy some office equipment, pay your lease etc. All you need to do is look through the many companies offering small business loans and finding one whose criteria you meet. The card would be yours immediately your application is approved. Once you meet their requirements, the rest is pretty fast.
Attractive Interest Rates: Like I have stated before, due to the competition amongst these credit card companies, you are likely to get a small business credit with an interest that would compete favorably with the best interest rates from a bank for a small business loan.
Employee Cards: Your staff can be given extra cards. Depending on how you operate, this can be a great help with managing of your finances.
Insurance: With many of these cards, you would some level of travel accident insurance cover without attracting an additional charge.
Rewards: You can get rewarded for using these cards. Some of the rewards you can get include cash backs, cash rebates, frequent flyer hours and more. You can redeem the frequent flyer hours with the appropriate airline.
Cost Savings: You can actually save money by using these small business credit cards. When you sign a business check, your bank would usually charge a fee. This does not happen with a small business credit card.
Credit Score: You get the opportunity to build your business credit score just the same way you would build your personal credit score. I assume we all know what a good credit rating can do for you when you need to get a loan.
Using a small business credit card has a lot of benefits. I would however warn that just like a person can ruin their finances with reckless spending on their personal credit card, so also can a person ruin their business’ finances by making reckless expenses on the card. With good financial discipline and planning, the small business credit card would serve you really well.
Check out SmallBusinessCreditCards.net for the best new business credit cards including American Express business credit cards.