Credit cards in business are essential for growth and bringing value to either medium or small businesses. Businesses credit cards come with a wide range of benefits and rewards depending on the package you get subscribed to as a business. A business credit card comes with some benefits and advantages to your business.
A business credit card comes with some benefits, including having higher credit limits than the personal credit card counterparts. Secondly, business credit cards allow one to have a better opportunity to manage business cash flow. A business credit card allows up to 30 days to pay off any expenses your business might have incurred, and there is no interest charged. Other advantages include rewards like cash backs or redeemable points from your company.
The competitive business credit card market is intense, and at times, it can get confusing how to choose the right business credit card for your business. There are professional tips outlined below on selecting the right business credit card that suits your business needs.
1- Compare business credit cards rewards.
Business credit cards come with operating costs that one should be aware of before applying for one. But as the saying goes, one has to spend money to make money. Therefore, a perfect business credit card should offer you cash backs on various purchases or payments you make using g this card. As expected, the different financial institution offers varying rewards and categories that they reward their subscribers. For instance, some companies offer travel and holiday incentives to businesses that subscribe to this credit card. Other cover restaurant and accommodation expenses if one happens to use their credit cards.
2- Compare benefits.
Choose a credit card that has its business model aligned to your value and aspirations as a business. Choose a card that brings value to your business. A credit card that aligns with the rewards of air travel suites for your business is beneficial.
3- Consider annual fees associated with your card.
It’s essential when making this decision to weigh in between the benefits a card offers and the fees they charge. A premium business card usually charges approximately $400 on costs annually. Most business cards get used for business traveling, and if a card doesn’t offer you much on this, it’s not worth the exorbitant annual fees.
4- Sign up bonus.
Does your preferred business card come with a signup bonus upon spending a certain amount of cash? Compare various offers on their signup bonus and make an informed decision on this. You intend to get a credit card that offers a large signup bonus. It’s important to note that when one fails to pay their bills on time, most financial institutions offering credit cards for business negate the signup bonus. When such is evident, it’s not worth affecting your business credit score for a business credit card.
5- Keep off foreign / international transactions.
Based on the enterprise you operate, you might sometimes get forced to conduct business overseas or buy goods that require you to pay in international currency. If that is you, then you need a business card that does not have foreign transaction fees. Such a business credit card will go a long way in saving your business from paying unnecessary costs that can accumulate over time. Avoiding business cards that charge foreign transaction fees is a better option.