Not all company owners are conscious of the advantages of getting a business credit card. If you think a personal credit card is enough to help you manage both your personal and business expenses, you should still consider applying for one that you can separately use for your company. This is to avoid any possible issues such as expense management problems.
It is inevitable to apply for business credit card particularly if you own a company that requires regular purchases and steady cash flow. It is also advantageous during times of emergencies such as unexpected expenses or if you need to immediately shop for supplies.
When you apply for business credit card, you need to consider a few important things that can help your business in the long run. It may be easy to apply for any credit card these days, but the crucial part is in the selection.
Below are some factors that you should consider if you wish to apply for business credit card :
Interest rate – There are many offers such as very low to zero interest rates during the initial year. However, some clients change their minds and select other cards because of high interest rates on the succeeding year . Be sure to read the terms and conditions before you even consider the offer.
Annual fee – You must find out about the annual fee and how it works before you apply for business credit card. If you’re aware with the types of credit cards such as those marked with Visa and Master Card, you’ll know their differences in terms of annual fees alone. Cards that are marked with Master Card typically have higher annual fees compared to those marked with Visa.
However, there are several credit card companies that permit their customers to waive 50% – 100% of their annual fees. Talk to the credit card company with regards to this feature because if you will have the chance to waive at least 50% each year, you will be able to save some extra cash.
Rewards – There are many come-ons and perks provided to credit card holders so that companies can get their loyalty. However, look for perks such as credit card rewards that will benefit your business. Rewards points for purchases are a few of the most beneficial perks, particularly for a company that requires steady supply of consumables.
The most important factor that you should consider when you apply for business credit card is how your business will benefit from all of the offers and conditions. If your card is strictly for business, then you need to maintain it solely for business purposes so you’ll see how much your company is benefiting from it.