How to Find a Business Credit Card that Works for You
Every small business owner needs a business credit card.
Yes, that’s a blanket statement. But business credit cards truly can be one of the most useful tools in your business’s financial arsenal—and that has a lot to do with how they work. Whether you’re still breaking ground on your new business, or if you’re just looking for a convenient financing tool to help you grow, a business card is absolutely worth the consideration.
But when you search for your perfect business credit card, you might feel like you’re drowning in the fine print. Here are some of the most crucial terms to look out for. They’re all definitive of how any particular business credit card works, and whether it’ll work for you.
- Rates and fees: What are the card’s interest rates for purchases? For cash withdrawals? For balance transfers? Is it a fixed rate or a variable rate? What can cause an interest rate hike?
- Annual fee: Is there an annual fee? Is it worth it for the card’s rewards program?
- Foreign transaction fee: If you travel abroad often for business, avoid cards that charge for overseas spending.
- Penalties: What actions (or inactions) will result in a penalty fee?
- Payment window: How long is a standard billing cycle? (This can sometimes be shorter on business cards than it is on personal cards.)
- Signup bonus: Are there are any that are especially attractive for your business? Cash back? Airline miles? Points?
- Employee cards: Does this card offer employee cards? This may be something you’ll need, if not now, then in the future.
Although there’s a lot to think about, you didn’t get this far by taking the easy way out. An investment of time and careful consideration now may mean setting your business up for a smoother road ahead, and that’s priceless.