Types Of Business Credit Cards

Category: Finance, Credit.

If you are an entrepreneur hoping to start a new business, a business credit card may be just the thing you need. When business credit cards were first offered to the businessperson, they were geared more toward corporate executives.

Although business credit cards have been around for many years, they have only recently started to provide incentives that are truly enticing to those starting a new business. This is no longer true. Types of Business Credit Cards. Today, credit card companies realize the value of the small business owner. With the push to draw in more cardholders, credit card companies are offering a vast array of business credit cards. For example, you can get a business credit card offering airline miles, or cash back, rewards incentives.

For this reason, it is best to take the time to compare business credit cards in order to determine which one is best for your business. Even if you are a new business that is using your credit card to help get yourself started, you need to take the time to choose a card that is best for the long run. In addition, you might end up with a credit card that is not right for your business. Applying for every business credit card you can find and hoping to get approved for one will reflect negatively on your credit report. Taking Advantage of Your Business Credit Card. In fact, a business credit card can be a great way to start pumping money into your business and helping it grow. After you have found the business credit card that works best for you, it is time to start taking full advantage of it and get your business off the ground.

Quick and simple, a business credit card does not require going through a long loan application process at the bank. Instead, you are free to spend the money when you choose and how you choose, providing you with a greater amount of flexibility than a traditional loan. In addition, you don t need to lie out a business plan in order to justify the loan. After the initial set up of the business is complete, you can take complete advantage of your business credit card by paying off your business expenditures at the end of each billing cycle. If you think it might be awhile before you will gain enough revenue to pay off your loan through your business credit card right away, then you need to be sure to select one with a low APR. This is particularly important if you have a business credit card with a high interest rate, which is common for cards with special rewards programs.

Another option is find a business credit card with a great introductory APR. Sometimes, the length of this introductory offer is determined When you compare business credit cards, look for one that will provide you with an introductory period long enough to get you to the point when money starts rolling in rather than flowing out. Some of these introductory APRs last as long as a year, while others may be just six months, or one month, three months. Growing With You. This can be an advantage to a small business that is just starting out because the amount you can charge on the card grows along with you. Many business credit cards do not have a preset credit limit.

The more you spend and repay, the more leverage the credit card company will give you. In addition, some credit cards only allow for an increase once per year- this can be bad news for a business looking to expand. This can be very handy because you do not have to wait for approval to increase your credit limit. So, when you compare business credit cards, be sure to find one with plenty of spending room, or look for one that can grow as you grow.