Steve L. Hatch
Business credit cards can be a real asset to any business. They enable a business to carry on a number of its financial functions with greater ease and can certainly bring some savings along with it – if you get the right credit card. Here are a few tips on how to select the card that would be best for your business.
The first thing you want to consider when choosing your business credit card is what do you primarily use it for – what kind of purchases will most often be charged to the credit card? The variety of types of cards will enable you and your business to get sizable savings if you get the right one. If your company is looking for a card that your company representatives or executives can use, then you may want to get an air miles credit card – if air travel is required by most of your agents. Or, possibly a gas credit card if vehicles are heavily used on a regular basis.
After you select a type of card, you want to start looking at the various features. One of the most important ones is the interest. Some business credit cards now do not have any interest rate. Typically, the card will usually not have an introductory offer period, and there is an annual fee on the card that could be as high as about $ 180. This fee usually will not be charged for the first year. Otherwise, where there is interest charged, you will want to get the lowest possible since that is what you will be paying if you leave any balance on the card.
Look at the various rewards that the card comes with. These vary quite a bit from one business credit card to another. From air miles, to office supplies you can get discounts on just about anything. Some cards even give you a large number of points or miles with your first purchase. Check to see, though, how long these sections or points last before they expire. Look also to see at just how many stores that you normally shop at or what companies you normally do business with (airlines, gas stations, restaurants, hotels, office supply stores, etc.) will allow you to use the points on the card.
If you should have outstanding credit card debt from any other credit card accounts, then you will want to take advantage of the balance transfer feature. Not all business credit cards put this feature on every card they offer. This feature usually will permit you to have 0% APR interest on any balance transfers that you make for the duration of the introductory offer. Watch out for cards that have a balance transfer fee attached to it – it could be as high as four percent. Also, you want to get as long as an introductory offer period as possible – they go from 3 months to as long as 15 months.
You may also want to look for a business credit card that you give you additional ways to get points, or air miles. Many of the business credit cards are limited in this regard, but a number of them will give you points for everyday purchases like food, medicine, gas, and so much on any other purchases, too. Obviously this type of card may give you the greatest amount of savings, but you certainly will want to compare carefully.
Business credit cards can also be given to your department heads if they are responsible for purchasing, too. All of your monthly statements for all cards can be put on a single statement allowing you to reduce accounting hours by making it easier to track it all. Most of these credit card companies also offer daily online reporting so you can keep on eye on all purchases. In addition, you also have the possibility of setting limits on individual cards that you give out.