It is important for every small business to have the right credit card to help them grow. Beyond the organizational ease of separating your business and personal expenses, the right small business credit cards provide rebates and bonuses for common business expenditures so that your every day purchases effectively add money back to your bottom line at the end of the month. There are a variety of cards on the market and it can be difficult to know which one to choose. Here are some tips to help you make that decision. First, choose your card based on what you will be using it for.
Cash Flow: Some small business owners may not even be aware of the potential pitfalls of an all-or-nothing spending strategy. These adverse credit card decisions can lead to devastating consequences if the cash flow does not remain constant. This usually means the accounts show as a zero balance for a brief period of time. The small business owners then must begin to refill the cash flow in the corresponding accounts or they face financial doom.
In addition, many business credit cards allow you to earn cash back, which can help boost your bottom line while helping to build your credit score. However, most small business credit cards only reward you for cash purchases and will not let you earn perks like gas rebates. You will have to take the initiative to learn about the various programs offered by the different credit card companies.
Rewards: Aside from cash back, business credit cards often feature rewards programs. These programs come in many forms, with most of them based on the stores you frequent. Targeting specific vendors is a great way to boost your business, especially if you find certain items that you need for daily use. A great perk to be enjoyed by many business owners is free airline tickets if you know any air carriers. There are usually no blackout periods, so you can use these rewards any time during the year.
Annual Fee: Credit card fees are another important consideration. Most American Express Blue Business Cash Advance cards have an annual fee. Some of them are even higher than others, which can make a significant difference in your overall cost. The higher the annual fee, the longer it takes you to pay it off. In the end, paying off the annual fee could actually cost you more in the long run, as it could be costing you much more than what you were paying each month in interest. An American Express card that has no annual fee may offer a higher rate of return, but keep this in mind when comparing these cards.
Ink Business Protection: It’s necessary to have this protection, especially if you do a lot of business with customers outside the United States. You want to make sure that you always have at least enough ink to cover those customers if they do not pay their account off within the required timeframe. If you have an American Express card with no annual fee and ink business protection, you will definitely be rewarded with a higher return on investment in the form of more savings! Look for American Express cards with the best business rewards to realize your goals!
Savings Account: Finally, it’s time to talk about American Express’ Small Business Credit Card Rewards program. Most small businesses do not have a savings account. This is one of the benefits to having an American Express small-business credit card. The way it works is that you can add more money to your savings account whenever you make purchases. If you do not have a savings account, you can take advantage of the 0% intro APR promo and build your savings.
These are the three best credit cards for business owners. The best credit cards come from American Express, Visa, and Mastercard. You can compare cards by looking online or asking your banker which credit card best suits your lifestyle. You want to make sure you have a credit card that allows you to earn cash back, gives you rewards, and helps you build a savings account at the same time.