While a business credit card provides a convenient way to make purchases, track business spending, keep personal and business expenses separate; owning a business credit card comes with certain advantages every business owner should expect.
If you’re in the market for a business credit card, consider a card that will provide the maximum benefits and leverage for your business.
When searching for the best business credit cards, consider these five key factors:
- Low fees – While there is certainly no shortage of finding no-annual fee cards for your business if you are considering a card that has fees, look at what the card offers for that fee. Paying extra for your plastic is a cost you should have justified. If the card offers incredible benefits such as flexible payment options, extra perks, travel protection, special discounts, etc. than it may be worth it.
- High credit limits – The amount of available credit for a business plays an important role in its ability to make purchases while maintaining a favorable credit utilization ratio. With high limit business credit cards it’s simply more convenient to pay for larger expenses and less likely to exceed your credit limits.
- Low APR (annual percentage rate) – Many cards offer a special introductory APR of 0% for the first 4-12 months on purchases and balance transfers. This can amount to a significant savings for a business and a great way to pay down existing credit card debt. The best business credit cards should also offer a low APR which can vary from 9%-13%. This plays more of an important role depending on how you determine the card will be used.
- Rewards – Many cards offer various types of rewards and bonuses but the key is deciding how much the rewards and services being offered actually fit into your business life. For example, a business credit card that offers discounts on hotels, airlines and car rentals, plus includes a benefit such as travel insurance, may be a great fit if you travel a great deal for business. Another factor to consider is how easy is it to claim and use the rewards being offered? Take the time to do your research so you can get the best deal for your business.
- Business credit reporting – Unfortunately not all business credit cards report to a major business credit reporting agency. The best business credit cards should share payment data with an agency such as Small Business Equifax, Corporate Experian or Dun and Bradstreet. This will enable a business owner to establish the creditworthiness of the business. For true personal and business separation the business credit card should solely report to the business credit agencies not the business owner’s personal credit files.
As your business grows having access to a sizable amount of available credit is crucial. A business credit card with a high limit, a low annual percentage rate, rewards that fit your business life, and a way to build your company’s credit report, is the best business credit card one can obtain.