Small business credit cards were designed to help those
families and individuals that often have difficulty getting credit lines, since
they own their own business. You would think that owning a small business would
spark some interest, rather these people, like those will bad credit are
considered risky candidates for credit lines.
Advantages Of Small Business Credit Cards
- Auto-segregation
of business expenses - This is the most significant advantage from using a
small business credit card. You just have to ensure that you make all your
business payments using your small business credit card and your monthly
credit card statement will clearly and correctly reflect all your business
expenses. You can use this further for accounting purposes or business
planning.
- Rolling
credit - Small businesses, as any business, incur expenditures first and
earnings later e.g. a business might need to make purchases, pay their
staff, incur maintenance costs etc, all towards building a product or
providing services to their clients.
The client is, of course, going to
make payments. However, there is a time lag between these expenditures and
earning.
A small business credit card allows you to roll-over the credit
i.e. you can pay for your expense using your credit card particularly when
you are expecting the client to pay in a month or so.
This way you are
rolling-over the credit to your small business credit card supplier. Thus
the money to fund those expenses doesn�t come from your cash account
- Emergency
help - This is something which every small business requires. Small
businesses experience crests and troughs. You never know when an immediate
requirement for money might arise.
More significantly, such a requirement usually
arises from more/new business and you would surely not want this good news
to be transformed into bad news. In such situations, a small business
credit card can become really handy and bail you out.
- Rewards
- As with personal credit cards, the small business credit cards too have
membership rewards. When choosing a small business credit card, this
factor should also be given appropriate significance.
Based on the necessities
of your business, the rewards program of one credit card might suit you
better than that of another credit card.
Gold Delta SkyMiles Small Business Cards
The Gold Delta SkyMiles Small Business Cards are one of the
cards that may not advantage you, since the APR: Prime + 9.99% have recently
increased to 13.99%.
The Balance Transfer APR on the Gold Delta is 9.99% fixed
rates for the endurance of the balance, and for the balance transfers made up
to six months of the cards membership.
The annual fees on few of these cards start at $85 for the
standard cardholder. This applies also to additional cards, 'unless you are the
cardholder that qualifies for the "Business Charge Card Product."
In this case, your annual fees are reduced to $30 for the
standard cards. Of course, they present a slick by offering the cards to small
business owners for the first year, free. You must have good credit ratings to
apply for this card. Or else, the fees may raise, if you are able to get the
card.
Blue Cash
The Blue Cash for Business Cards offer 5% cash rebates and allow
you to earn money back on eligible purchases on the credit card. The small
business owners are offered a 0% introductory APR on all purchases up to the
first six months.
The cards have a "built-in smart chip for Internet
security," and have no limits on the cash rebates. This card qualifies small
business owners with good credit.
The Business Gold Card from OPEN
The Small Business Network has no financial charges, with no
pre-set limits for spending, and the first year the card is free. The annual
percentage rates are free for the Additional cards also.
The company will send you a monthly "expense management
report" as well as offering online account management. Again, you must have
good credit to qualify for the Business Gold.
Platinum Business Cards from American Express
The Platinum Business Cards from American Express have no
annual fees, and "pay over time" plus 0% APR up to nine months on all purchases
made on the card plus the balance transfer. The card is good for small business
owners that have good credit.
Review of Small Business Credit Cards
Lt us consider the Blue Cash for Business Cards, since it offer
cash back rewards, and does not appear to have an annual fee. However, it is
wise to read the Terms & Conditions, since it might state in the agreement
that an annual fee will apply after the first year. You want to know what the
fee is on this card.
The cards that promote annual fees are cards you want to be
careful of when applying, since some have hidden stipulations and fees. The
card offers a 0% APR for six months, but what APR will you pay after the six
months has ended?
The Built-in Smart chip for Internet Security is also
appealing, since this is not always offered with credit cards, and the security
is worth paying an annual fee, since you are protected.
The three preceding cards may be of some value, however, the
offers do not seem appealing since you have high interest rates possibly after
the Introductory, and as well, you have annual fees with no rewards.
Related Articles:
|
