Entering into the world of business credit cards is much different than that of personal credit. The choices vary and it’s more challenging to figure out a card that will suit your individual business. There are many options with their own unique rewards and various benefits. How you choose your card will be dependent on how you’re going to use it.
There are a few major considerations to look at before choosing a card. You should first look at what your major expenses have been for the business. Take into account if you’re running a new business or an established one. Think about the different expenses you may have to spend on. Is travel a major factor for the company, or other daily expenses a monetary issue?
Once you’ve come to a consensus on what your biggest choice depends on, you can begin looking for a card. Take a look at some major credit card reviews with those factors in mind. In the meantime, here are some cards without annual fees.
No annual fee
A solid card comes from Chase with their Ink Cash Business Credit Card. The card comes with a 5% cash back reward on $25,000 in office supplies, cell phone service and Internet expenses. The other cash back rewards come from dining out, gas station and then a 1% rate on other types of spending.
A great thing about this card is the signup bonus. These types of bonuses are a benefit of having a business credit card. They are basically a way to get interest free money back to the business. That is, if you’re smart with your business credit. The signup bonus here is $300 in cash back after spending $3,000 in the first three months of the account. There is no annual fee.
Additional no fee card
Another great card comes for American Express. Known usually for their high rate fees and charge cards, the new Blue for Business Credit Card is a welcomed addition to business credit.
American Express offers 2 points per each dollar spent on travel and 1 point for other expenditures. Members receive 10,000 points after just the first purchase within the first three months.
There are some really good rates here with a 10X points at restaurants during the first half-year after the card has been opened. This is limited to $2,000 in purchases. The card has no annual fee and additional benefits.
For those traveling around the country, they can use this card for airline and hotels. It is a great card if you’re looking to use a hotel you frequently use. Any trips you need to finance, you’ll know that you’re in good hands making additional points for further business purchases.
Business credit cards cater to the small business by allowing for a higher credit limit. A business credit card will give you the funds to afford these business necessities.
Small business credit cards can help your establish credit. This works in the same way as a personal credit card—pay your bills on time, and you will be rewarded. If a company can manage their business credit cards, they will more likely get approved for small business loans, lower interest payments, and higher credit card limits.
At the end of the day, business credit is about utilizing your credit and assisting with cash flow. These business credit cards are all dependent on how you either want to or need to use a credit card.
This article was written by Lucas Miller. Lucas works in the business finance sector and often writes about small business finance matters in his articles.