A business credit card, also called a corporate credit card, is a credit card designed for use only by a business and not for an individual’s usage. Business credit cards come in all shapes and sizes. Like with unique credit cards, Business Credit Cards are convenient, provide rewards and other incentives, be a valuable tool to develop long-term financial footing, and offer a substantial financial cushion when the business needs it most. Because you may use corporate credit cards at any time or anywhere, they are beneficial for small businesses that need additional credit to grow and maintain their operations. The best corporate credit cards for your business should provide the following key features:
Reward programs. Most business credit cards will provide some type of reward program that rewards spending, such as cash back, gift cards, or airline miles. Some companies offer double points or even a percentage point system for spending on certain purchases. Other rewards programs may be based on the types of purchases made, such as cash bonuses or discounts for shopping at select stores.
Higher credit limits. Business credit cards generally come with higher credit limits, which allows you to take out loans and other amounts of money over a longer billing cycle. These limits are typically determined by how well the business is doing, the industry it is involved in, and how much the company makes. If you see rates that are too high for your business, see if there are higher options that you can consider.
Tiered interest rates. Unlike personal credit cards that offer single, higher interest rate payments to customers, business credit cards have tiered interest rates. In general, the higher the credit line, the lower the interest rate. The first tier is an introductory rate, then there is a regular fixed rate. Depending on your credit and income, you may be eligible for other incentives and benefits.
Same day services. Unlike personal credit cards that can offer online access, business credit cards give you the option of getting a check in the mail within a few days. This means that you can use your business credit cards even if you are traveling. The perks may include business trip reimbursement or other benefits that are based on your credit profile. See if you can find a rewards program that offers same-day access.
Flexible features. See if you can find any features that would make it better than your personal use credit cards. Most business credit cards give you the convenience of using it online, sending and receiving payments, and having flexible spending. See if you can get any of these features for free or at a minimal fee.
Other incentives. See if you can get some other incentives besides rewards points. Some business credit cards offer consumer cards with cashback options, airline miles rewards, or other perks depending on the credit profile. These rewards can help you offset spending if you are not planning to use them every month. The key is to read all the details to see if they will be useful to your lifestyle and budget.
Business loans and personal loans do not always go hand in hand. When borrowing money from a bank, you have to make monthly payments. But when you are shopping around for business credit cards, the charges you will have are usually less than those for personal credit cards. You also have to consider how much you can afford to spend on annual fees, transaction fees, balance transfer fees, and finance charges. Your goal should be to find the best credit card rates at the best prices with the most perks available to you.