Top Things To Compare When Choosing A Business Credit Card
Monday, January 4, 2021, 6:00 AM | Leave Comment
Having a different credit card for your business expenses comes with plenty of advantages.
A business credit card allows you to manage your business operating cost, independent of your payment.
Additionally, this also helps you to gauge your business budget.
Business credit is useful when you want to separate your personal and business expenditures.
You may also qualify for rewards on your business purchases or a break on paying interest, or benefits that are bound to make your staff happier.
There are various business credit cards available, which makes it challenging to choose the best card.
Here are tips to consider when choosing your business credit card.
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Rewards
Many business credit cards available in the market pay rewards when you make purchases. However, this might depend on your spending category. If you and your staff travel a lot, it would be best to have a card that rewards miles or bonus points for travel; according to financial expert advice from https://www.nav.com/business-credit-cards/, you can check your monthly bank statements to view your budget if you’re unsure. The best thing is that new companies with no spending history can go for flat-rate rewards credit to start. Additionally, it would be best to check how rewards are redeemed. You should ensure that you make use of the valuable ones.
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Understand Your Business Expenditure
Once you understand how business credit cards work, it’s time to assess your spending habits. You can review your financial books from the past year to identify areas where your money expenditure is high. Some categories might include marketing, leisure, or travel, among others. With this information in hand, you can now begin looking for a business card that provides your said benefits. Additionally, it would be best to ask yourself some questions like who travels more between my employees and me? Can I categorize my business spending? Consider each area carefully and look for a card with such benefits.
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Personal Guarantee
It’s easy to acquire a business credit card compared to a business loan. However, you are still required to demonstrate the ability to pay off your loan. Sometimes your card issuer may consider your personal and business credit score during an application. You might be required to make a guarantee that you’ll use your private funds to pay the bill if your business credit history isn’t right. Some cards may still need your proof, even with a good business credit score. In the long haul, this might affect your credit score.
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Benefits vs. Fees
Minimizing your business expenditure requires you to pay attention to credit card fees. Before applying for a card, we advise that you check the fee schedule. Some fees are unavoidable unless you make transactions such as cash advance or balance transfer fees. If the card issuer charges an annual fee, it would be best to make sure that you’re more than regaining your cost with the rewards or benefits you’re receiving.
When it comes to hand-picking the best business credit card, there is no one-size-fits-all option. As a business owner, you should research which card is best suited to your type of business. Before choosing a card, ensure you research many cards. Compare the different benefits and terms which are tailored to your business goals.
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