A new business has a lot of expenses, sometimes urgent. When the loan money is depleted many business owners are forced to use personal credit cards or checking accounts. This, however, isn’t great for the company’s credit history. A company needs credit history to gain better the best business credit card offers. Business credit cards have a lot of perks that normal credit cards don’t offer. There are many reasons to apply for an unsecured business credit card for your company.
Read more: top 5 home base business ideas for 2015
1. Unlike secured credit cards, regular credit cards have lower interest rates, monthly and annual fees and higher limits.
2. A personal credit card may affect your credit positively, but it does nothing to strengthen the credit of your company. A good credit history is vital for a growing company; especially one that may need an influx of cash for expansion at some point.
3. A business credit card can be issued to numerous employees, making buying company paper, ink, pens etc convenient. It’s especially convenient for a partnership company. As the cards are issued under certain names or numbers, the purchase trails are accountable individually.
4. Business reward credit cards are amazingly beneficial to a company. A business owner can usually choose which rewards work best for their company, including: mileage bonuses, cash back and discount with restaurants (for bromancing clients) etc.
Finding the best unsecured business credit card isn’t as easy as it should be. Searching in Google can take ages if you want to wade through page after page of offers. The best option for a new company is to decide what type of credit card will work best for their company. This means deciding an interest rate you’re willing to settle for, what type of annual fee is acceptable (this is sometimes deductible), rewards vs. fees (chances are that if you have a ‘rewards’ card, there is an annual fee).
It’s easier to find a business credit if you’re looking for a certain type of reward card, for example. It’s simply a matter of searching for “business card reward airline miles” or something similar. Remember when searching the Internet that most websites have an interest in giving you the names of credit card companies they’re affiliated with (meaning they get a fee for referring you). While the companies they recommend may have fantastic offers, they aren’t a comprehensive list.
In the end, the best business credit card offers are probably going to be through your lender. Why? Because they want your full relationship and they’ll compromise to get it. Don’t be afraid to ask for exactly what you want from your lender. It can sometimes be most beneficial to have one of every type of account with this lender. This doesn’t mean you have to close other accounts, by the way. Considering the vast discounts available for having a full relationship with a lender (checking account, business account, credit card etc.), it’s worth asking what is available.
Good luck with your new business!