A Credit Card For All Your Business Needs

A Credit Card For All Your Business Needs

by Hamm Morgan

Credit cards are not just for personal and individual use. There are credit cards for business convenience, purposes and purchases, like that emergency overseas business trip you just have to take, or all the business supplies that just have to be replenished before the end of the day. In instances like these, the business credit card is not just a luxury for your company; it becomes almost a necessity to help keep operations going.
Different types of credit cards for business are available in the market from all the finance companies. Some cards help you to keep track of your business’ requisitions and expenses by categorizing your charges on your bills. These categories are set up by you, as only you would be able to decide on which kinds of purchases are authorized on such cards. When making a transaction, your bill would automatically categorize the purchases – making it easier for you to distinguish one purchase from another, and to be kept on your toes of the other purchases made by those within the company. This helps in the justification of each of these purchases for claims and clarification when necessary.

Other credit cards may also offer you cash back rewards on your purchases. These “rewards” may give you between five and eight percent back on your monthly statements, which means every 100 dollars spent will be five to eight dollars less in your next bill. Other rewards come in the form of points which can be redeemed for specific business items like wireless services, office supplies at partnering outlets or even gas at your favorite gas station chain. Rewards can also come in the form of discounts for purchases exceeding a certain amount – this is useful particularly in a consolidated monthly statement for the business credit cards dispersed to the company, which translates into more savings for the business.

If you are in a business that requires a lot of travelling, chalk up your travel miles with a credit card that partners up with an airline, which earns you travel miles with every dollar you spend so you can exchange them for free flight tickets for your next trip.

You may well discover that the best business credit card for you is one that doubles up as a checking account as well. Although this is not offered by many credit card companies, you may find that being able to write checks for your suppliers and vendors against your credit line is a convenient business tool to have. Payments for these checks will have the same payment grace period as your credit card, as all amounts issued in the checks will be consolidated in one credit card statement. This means if you are using a card which offers you cash back rewards or rebates on your purchases, you will be saving more in your next bill as long as they are paid within the grace period.

The best business credit card is one that offers you the best of everything – no annual fee charges, cash back or rebates on your purchases, bonuses for your expenses and discounts when you shop at participating partners – while offering you a low or 0 Annual Percentage Rate (also known as 0 APR) for the initial months of using the card and allowing to make a business credit card balance transfer as well. Finding such a card may be easier than you think. Just shop online and you will find more than one which will fulfill your business needs while giving you benefits on the side.

Most business credit cards offer a twelve-month 0 APR for all retail purchases and a 0 APR for balance transfers to the card as well. This saves you lots on interest payments while helping you to manage your company expenses at the same time. Even better, source for a card which gives you a lower APR than the conventional ten to twelve-percent-per-year. Competitive credit cards usually offer a very attractive low interest rate of between five and seven percent – on top of which you will still be eligible for rebates, cash backs, rewards and discounts.

The credit line is the other thing you will need to consider in a business credit card. Depending on the size of your company, the nature of your business and number of people authorized for the cards, you may choose between a lower credit line in the proximity of thirty thousand dollars and a limitless credit card.

Naturally, having a higher credit line will mean more stringent rules for spending on only business necessities and having these expenses tied in with other benefits like travel miles and discounts at partnering providers will not just be a prudent move, but sound business sense.