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While the world just focuses on the revenue and sales charts, only a business owner knows the pain of meeting overhead expenses. From utility bills to office supplies, there are plenty of expenses that often go unnoticed but take up a huge junk of the profits you earned. To manage all these expenses in a smooth and efficient manner, there is a business credit card!
A business credit card is a powerful tool, using which you can smoothly manage your business expenses. The best part is that when you have a business credit card, you can keep your personal spending separate, avoiding a lot of chaos.
These cards are also a savior in case your business faces financial trouble, as you can use your credit and pay it later. You just have to choose the best business credit card that aligns with your spending habits.
Key Takeaways
- Business credit cards are powerful financial tools that offer support to startups and growing enterprises.
- You can enjoy uninterrupted cash flow; manage unplanned business expenses and a lot more with business credit cards.
- These cards offer additional benefits, like extra miles, cashback, and other perks for your convenience.
- You should choose the business credit card wisely after carefully evaluating its offerings and the fees involved.
Benefits of Having a Business Credit Card for Small Business
A business credit card is just like any other powerful asset for a company. Whether you are a startup or a big enterprise, these cards can offer a wide range of benefits. Some of the perks you can expect to enjoy are listed below.
- By opting for a business credit card, you can keep your personal expenses separate. It proves really helpful at the time of a tax session and simplifies the bookkeeping process.
- It can help in smoother cash flow as you can clear all your payouts without waiting for your invoices to get cleared. Use your card and pay the bill before the grace period ends to enjoy interest-free credit.
- Business credit cards come with additional perks, like cashback, travel miles, lounge access, and store credits. You can use these rewards as and when you want.
- You can allow the business credit card to your employees and save yourself from the expense reimbursement process. Moreover, it will also help you keep better control over the expenses by setting a limit to your credit card spending.
There are plenty of other benefits of using a business credit card. However, whether you really enjoy these perks or not depends solely on the choice of card. Let us walk you through a strategic process for choosing the best business credit card, and make the most of this powerful financial tool.
Key Factors to Consider When Choosing a Business Credit Card for Small Business
You can find multiple financial institutes offering business credit cards. With all these options, it gets challenging to choose the one that best caters to your requirements. Let us share the key factors you should consider to narrow the choices and pick the best credit card for your business.
Interest Rate
It is the primary factor you should keep in mind while choosing the card. Especially, if you want a business credit card for small businesses, pick the ones with lower interest rates.
Fee & Additional Charges
Make sure you check if there are additional fees or charges involved. Business credit cards usually take annual fees, foreign transaction fees, and multiple other penalties, which you should know about before you start using the card.
Credit Limit
Check the credit limit of your card and make sure it matches your business spending requirements. Although a higher credit limit means you get more flexibility, it may not always be a good idea as you may increase unnecessary expenses.
Perks or Rewards
Business credit cards offer perks and rewards under various categories, like travel, dine-in, and store credits. Make sure you pick the card that offers rewards that are valuable to you to make the most of your credit card.
Make sure you compare all the card options based on these factors and choose the one that perfectly aligns with your requirements.
Business Credit Cards with Specific Perks
Rewards are one of the key factors in deciding which business credit card is apt for your business. These are the additional perks that ensure that the credit card is beneficial for the business in every way. We have listed some of the card categories based on specific perks that you can consider getting.
Travel Rewards Business Credit Cards
If you or your team travel frequently for business, travel credit cards offer travel rewards that would be the perfect choice for you. These are the best business credit cards that offer airport lounge access, free travel miles, and seat upgrades to make your travel comfortable and cost-effective.
Popular Option: American Express Business Card
Cash Back Business Credit Cards
Another category of business credit cards offers cashback for every transaction you make through it. Every time you use the credit card you get a certain amount back into your account. You can use this credit on your next purchase and cut down your overall expenses.
Popular Option: Chase Business Credit Card
Low-Interest or 0% Introductory APR Cards
If you are looking for a business credit card for a small business, go for the one with a 0% introductory APR and a lower interest rate. These cards will help you maintain efficient cash flow without adding anything to your existing expenses.
Popular Option: US Bank Business Credit Card
Additional Perks and Benefits to Consider
If you look a little bit beyond the basics, there are additional benefits that the business credit card offers which might make it easier for you to select the one.
| Additional Feature | Benefits |
| Employee Cards | Employee credit cards for a business with tailor-made credit limit to avoid the chaos of reimbursement process. |
| Account Management | Popular Cards offer account management tools that you can integrate with your software system for error-free bookkeeping. |
| Insurance Coverage | Another valuable feature is protection coverage. Many cards offer insurance against your purchase or even for your travels. |
| Sign Up Bonus | Business credit cards also offer sign-up bonuses against which you get extra rewards on meeting a threshold of purchase. |
| Exclusive Access | There are business credit cards that offer excess to events where you can get an opportunity to increase your network which will benefit your business in many ways. |
Conclusion
Choosing the best business credit card is a difficult task. There are many options available with perks that sound attractive. So, you will have to do thorough research and evaluate all the preferred options carefully based on factors, like interest rate, credit limit, and additional rewards that we discussed in this article.
Understand that the idea is to choose the card that offers convenience, financial support, and rewards that align with your business spending. Once you have the right card, you can enjoy uninterrupted cash flow. Moreover, you will not have to worry about unplanned business expenses as your business credit card will always have you covered.
Out of many options choose the best small business credit card with this guide. Choose the card that offers convenience, financial support, and rewards that align with your business spending.
