How to Choose the Right Business Credit Card for Your Small Business

TORONTO, ON / ACCESSWIRE / September 4, 2024 / Choosing the right small business credit card is an important decision that could streamline spending, improve account management, and earn rewards to help your business save money. Deciding which card is right for you depends on your business model. Here are some factors to consider when choosing which card best fits your needs.

Do You Need a Business Card?

Business credit cards have many potential advantages over personal cards, such as higher credit limits and business-specific rewards. Many offer the option of credit cards for your employees at no cost. They also allow you to separate your personal and business expenses, which is necessary for accurate bookkeeping and financial reporting. All these benefits make them an excellent choice for most small businesses.

Some business cards have fewer consumer protections and require a personal guarantee that could make you liable for the business's credit card debt. As a small business entrepreneur, you should weigh all these factors when making your decision.

Review Your Expenditures

If you opt for a business card, choose one that syncs with your spending habits to get the best benefits. A quick review of your books will give you a better sense of your business "lifestyle" by highlighting where you spend the most. The good news is that there is a wide variety of business cards to choose from, with different reward structures focused on specific expenses, including advertising, office supplies, travel, and utility bills. For example, if advertising is critical to your business, consider a card offering ad spending points. If you drive a lot for work, a gas credit card would be a good choice because it earns rewards on every fuel purchase. Then again, you might find that there isn't any one expense that dominates your spending. If that's the case, a flat-rate cash-back card offers a fixed percentage reward on all purchases.

Annual Fees and Interest Rates

Cards with annual fees frequently offer more perks, such as higher rewards, bigger sign-up bonuses, and statement credits for goods and services you might otherwise have to pay for, such asNEXUS. The benefits can be substantial, but so can the fees. Crunch the numbers to compare your yearly expenditures and reward rates against the annual fee. To offset the cost of the card, you could shop around for a business card with a low or 0% introductory APR. No- or low-interest cards are an excellent choice if you're planning a big purchase because they allow time to pay off before the interest accrues. Interest rates generally depend on credit scores, so check your credit history to see if you are eligible for lower rates.

Additionally, when choosing a business credit card, it's worth considering whether the card offers installment plans. Installment plans allow you to pay off larger purchases over time with fixed payments, providing flexibility in budgeting and helping you avoid the impact of high-interest rates on large purchases.

Consider Fringe Benefits

Beyond offering rewards and savings, business credit cards can provide fringe perks and benefits to help your business run more smoothly. These might include integration with your accounting software, travel insurance, free access to airport lounges, extended warranty protections, and upgrades for services and products.

As a business owner, you need the best tools to keep things running smoothly. These tools help you focus on what matters, like growing your revenue for long-term success. Picking the right business credit card can make a big difference in helping you achieve your goals.

CONTACT:

Sonakshi Murze
Manager
sonakshi.murze@iquanti.com

SOURCE: iQuanti