Small businesses need at least one credit card for their business. They are often a necessity, such as when travelling and having to pre-book rooms, flights and cars, not to mention using it for gas or other miscellaneous business expenses. It can be hard to determine what is the best credit card for small business, particularly when there are so many different ones available. However, there are some factors that can help with the decision about which card is best and thus help make the decision easier to make.
Small Business Cards vs. Corporate Cards
Corporate credit cards are more difficult to obtain than small business credit cards and so it is important that the small business owner research every available card to ensure that the one with the best rates and terms is chosen.
Small business credit cards are available from lending institutions as well as online. The process of being approved for a small business card is very much like applying for and being for a personal credit card and approval can be granted in minutes. There are many websites that allow small business owners to compare the different terms and rates available and apply online once they find the one that meets their needs and budget.
The Internet is also a great place to read various reviews on the credit cards that are offered. The small business owner can find out how other small businesses have fared using the various cards and if they ran into any unforeseen pitfalls such as rates that suddenly increased for no reason or the inability to have more than one card so that an employee could use it for gas.
Small businesses should look at more than the interest rate on the credit card they apply for; they also need to look at fees that may be incurred on the card and perk that are offered, if there are any. Some credit cards charge an annual fee and others do not. This is one of the reasons that the fine print on the cards must be read and the various cards compared line by line.
Reward Cards
Consumers everywhere know the value of reward points that come with using credit cards. Small business owners can cash in on these rewards as well. Many small business credit cards have reward points that can be accumulated and used for air travel on business trips or even supplies for the business. These reward points alone should not be the sole reason for using a credit card; however, if paid off on a monthly basis and interest is low enough, the reward points are an added bonus that can save money on pricier items such as airfare.
Multiple Cards for Employees
Corporate businesses are not the only businesses that need multiple credit cards. Often, a small business will want to give the marketing director or field salesperson their own credit card that belongs to the company. This is one feature that must be considered when looking at credit card companies because not all credit card companies offer multiple cards to one company.
Online Access
Most employers and small business owners want to be able to access the credit card account online. This allows them to keep up with the spending habits that are occurring within their business. This also allows small businesses to pay their bills online and keep from having to cut checks and spend postage to get the payment sent out.
Customer Service
It is vital that the credit card company selected by the small business have a customer service department that is responsive when needed. While it isn’t often that most businesses need to call their credit card company, it only takes one disgruntled employee or lost credit card to wreak havoc on the credit card. If the company is slow to respond to customer calls, the small business could lose money and time waiting for the situation to get corrected.
Security
Small business owners need to know that they cards they sign up for have security measures, such as daily credit limits that are only able to be broken by the owner or varying daily limits depending the card. For example, the marketing card could have one daily limit while the president of the company has no daily limit. This gives the business a better handle on the money that is being spent and keeps employees from going rogue and bankrupting the company with the credit card.
The best credit card for small business is the one that is able to offer the best interest rate with the best term. It will also be the card with the features that are needed by the company such as multiple cards for various needs, online access to accounts and excellent customer service. Once the small business finds the card that fits their needs they can apply for it and have it in their possession in a short time.
