Business Credit Cards Can Have Multiple Benefits
There are many who believe that business is all about making money on someone else’s money. There are lots of other reasons to be using business credit cards. There are so many products out these days that it is hard to sort through them all. What you find on this site should help you sort through the many options available.
A secured business credit card can be used for multiple purposes. Most often it is used to establish credit or to restore the trust and confidence of a bank. Generally this type of card is secured by a special savings account set up that actually acts as security for the card and your card limit will depend on your banker’s comfort level with your ability to repay the available limit and the amount set aside in your account.
Cash Back Business Credit Card
This card offers cash rewards rather than one of the myriad of other awards. Cash is universally usable across any segment of your business operation as opposed to air travel, hotel points, or purchasing discounts. Many small businesses use these cards to leverage their purchasing power and reduce costs by some percentage points that are granted when the card is used. These cash rewards are generally rewarded annually, which can mean a very nice rebate coming back to the business at year end.
Travel rewards cards are excellent for companies who travel a great deal. These can be air miles, hotel points, or car rental rewards. In addition to accumulating the airline miles through frequent flyer accounts, the cards can help you supplement those miles or hotel points by having the dollars paid for those flights and hotel stays accumulate to the overall total miles or hotel points available as well. You might be amazed at how quickly this “doubling” effect can accumulate into substantial points that equate to savings for the company or for benefits for employees.
If you’ve had a problem keeping up with your credit card bills, here is an opportunity to get a break from the high interest rates charged by your current card and hopefully give you a chance to pay some of that balance down rather than just paying interest every month.
Some Advice
- Play the credit card game wisely. Accumulate your points while paying off your card every month. If you don’t you’ll lose any benefit you might have because of late fees and / or high interest.
- Know your business needs well. Don’t be swayed by the latest slick rewards program. Match your business needs to the card offering that you select.
- Position your cards to help you and your business in the normal flow of the every day. Don’t use a rewards card that will require you to spend monies outside of your normal routines to reap the rewards.
We’re here to help you be smart about your credit card usage. Business credit cards can be a tremendous asset or they can be the tail wagging the dog. Always be in control of the financial tools you use in your business.
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