Choosing a Credit Card for Your Small Business
BY: VESELINA DZHINGAROVA ON FRIDAY, MARCH 09, 2018
Businesses of all sizes and descriptions have expenses. These expenses will grow and shrink throughout the lifetime of a business. As they do, so does the magnitude of the unexpected costs that arise on a relatively regular basis. Many banks offer credit cards, which are aimed specifically at small businesses. These small business credit cards can be set up more quickly and easily than setting up a line of credit from a bank.
It’s easy to understand why small business credit cards are proving to be so popular for small businesses who need to access some spending funds at relatively short notice. This additional spending power allows a small business to establish themselves and to raise awareness of their brand. For some businesses, this can make the difference between success and failure.
With so many options for small business credit cards out there, choosing between them can be difficult. There are a number of different factors to consider when making your decision, it is worth taking the time necessary to consider all of the following factors before you make any commitment.
What do You Want the Card for?
First and foremost, think about what your current spending habits are and what it is that you are hoping to use the credit for. You cannot aim to achieve a goal if you don’t know what that goal is. Ideally, you want to use the credit card in a way that will generate a return overall, but the choice is ultimately up to you. Many small businesses use these credit cards to fund marketing campaigns with the hope that the ROI will justify the expenditure.
What can you Afford?
You should also establish a plan for repayment up front. If you want to be able to pay off any charges once a month, then you will need to establish what charges you are likely to incur and how to ensure you have the spare capital to cover them. Just as you wouldn’t want to saddle yourself with a personal credit card that you couldn’t afford, and which would simply end up accumulating debt, you also don’t want to end up with a small business credit card that is going to be a drain on resources.
What are the Terms?
Once you have a good idea of what you want to do with your small business credit card, and you have whittled your list down to those that you can afford, your next consideration should be the terms themselves. The terms will set out exactly how much credit your card gives you access to, what obligations it will confer upon you, and what other extra features, such as cash back, that the credit card offers.
Customer reviews are an incredibly useful tool, whether you’re a consumer looking for the best deal, or a business hoping to demonstrate their value. You can compare credit cards at Creditcardreviews.com.
Finding the right small business credit card to suit your small business’s needs could make the difference between success and failure. If you need some credit relatively quickly in order to fund your business’s expansion, then a small business credit card could help.
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