Small business credit cards
Are you seeking to find financing for day-to-day needs for your small business? Small business credit cards provide you with a wonderful opportunity to meet unexpected expenses and keep your business afloat. With small business credit cards, you need to watch out for the following:
Why do you need the small business credit card? Credit cards can help you establish small business credit, which you are going to need for future loans. Secured credit cards can be used if you are unable to acquire unsecured business credit cards. The great thing about secured credit cards is that you have the option to set the spending limit, which can help you avoid overspending on the credit card.
Small business credit cards provide you with the opportunity to track your small business spending easier. Since you are giving the cards out to some of your trusted employees, you will be able to see exactly what the money is being spent on. This provides you with a great opportunity to keep track of your expenses easier so you don't always need to keep track of receipts.
Credit cards provide you with a chance to pay off debt in the future. When you use credit cards, you normally have 28-30 days to pay the money you borrow before it's due. This allows you to generate some income during this time that will pay off your credit card so you aren't charged interest on the card. Having a little flexibility with the repayment is a huge advantage to small businesses that need a little more time to repay their debts.
Here are some things you need to search for when you are shopping for small business credit cards:
Annual percentage rate - Your APR can have a huge impact on your small business cash flow. You need to look for a lower APR in order to save money when you borrow money for your small business. If you are planning to transfer balances or purchase along with the credit cards, you need to make sure you are getting a lower interest rate.
Introductory offers - When it comes to acquiring small business credit cards for your business you need to take a look at the introductory offers. If you need to access a lot of money up front, you should look for the credit cards that have introductory offers with a 0% interest rate for at least a year. These low introductory offers are a great opportunity to gain the money you need in a hurry without needing to pay a high amount of interest on the loan.
Grace period - What does your grace period look like on the loan? You need to work with credit card lenders that have flexible terms. Try to find a credit card lender that can offer you a few months to repay the money if you have cash flow challenges that suddenly arise. Most grace periods are 30 days, but there are some companies that will offer you a grace period of 60 days or more if you need it.
Annual fees- A lot of business credit cards have annual fees attached to them. Be careful with the annual fees as they can be charged to your account every quarter. While you may think you are getting a credit card that has some free rewards and other things, you could be signing a contract that says you will pay annual fees for those rewards.
Shop around with multiple lenders when you are trying to find the best business credit cards. It may not be easy to find a decent credit card for your business so it's a good idea to check online lenders as well as traditional lenders.