business credit cards

Choosing the Right Business Credit Cards for You

With so many banks and financial institutions shelling out small business credit cards to literally anyone who has a registered small business and has reasonable credit, it's difficult to determine the best business credit card for you. All major credit card companies, including American Express, Visa, MasterCard and Discover have multiple business credit card versions. Some offer ambitious rewards such as 5 percent cash back offers on purchases made at participating companies and others give you airline miles and rewards, etc.

However, choose wisely because the right business credit card for you should carefully reflect your business' spending goals. Otherwise, you could either end up paying higher interest rates than you should or you might be giving up the benefits of a no interest short term loan. For example, if you predict that your company is going to be investing in a high cost item which you feel should be differed and therefore paid in monthly installments you could apply for a credit card which provides special rates for new business credit card customers. Some small business credit cards will go as far as offering you a zero percent interest rate on all purchases for the first year. This means that if you pay off your entire debt before the end of month 12, you'll have saved your business thousands of possible dollars in interest.

On the other hand, there are many small business credit cards offering very interesting incentives. Most of them give out at least one incentive point per dollar spent. These points can be redeemed in everything from airline miles to actual cash. It all depends on the type of card you decide upon. Keep in mind that interest rates might be a bit higher on some of these incentive driven business credit cards but if you plan on paying for everything you buy immediately after you get the bill, you won't pay interest anyway. These cards are great for businesses that have short term buying needs.