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Business Credit, Finance & Accounting

How to Find the Best Small Business Credit Card for Your Company

Best Small Business Credit Card

Establishing credit in your company’s name should be a prime goal. The Small Business Administration says that 65 percent of small companies use credit cards, and about 50 percent have those cards established in the company’s name.

Most small business owners find company cards very useful to have. Company cards can make it easier to manage cash flow, simplify making certain purchases and help establish credit in your company’s name. Many business cards also offer valuable perks that can even help you save money. These perks often include discounts, travel miles and shopping reward points. To help you find the best small business credit card for your company, take a look at the tips below.

Shopping for Small Business Credit Cards

The business credit card industry is competitive, so those of you with great credit have a chance to find some really useful cards. At the same time, business owners with average or even poor credit can still find some credit cards that can be managed well to build better financial ratings over time. There are company credit cards for almost every kind of company, but you need to be selective in order to manage that credit well.

In order to find the right credit card company for your business, you’ll want to consider a few things:

Your Credit

You can research different cards online. You don’t want to start applying for dozens of different cards only to collect a lot of declines. This could impact your credit report and it wastes time. It’s a good idea to find out the credit worthiness that different issuers find acceptable. Even if you can’t qualify for the best business credit card, you might find an acceptable one that can serve as a short-term solution while you improve your company’s credit rating. You’ll know that you’ve improved your rating when you start getting lots of offers for better cards in your inbox or mailbox.

The Card’s Value to You

Many cards offer attractive features. At the same time, not all of these perks will help all businesses. If you run a local bakery, you may not need to buy many airline tickets. In some cases, cards without lots of perks may offer better terms. For example, you might find that a credit card with a longer grace period and low fees helps your cash flow a lot more than one that can get you into the VIP lounge at the airport.

Your Credit Management Strategy

If you’ve already established excellent credit, you may take advantage of some 0 percent introductory rates to keep the cost of credit low. If you plan to pay your balance off before the grace period every month, the APR might not matter that much. On the other hand, if you intend to carry a balance with an interest charge, the card’s APR may be the most important thing. Other things to consider are the fees and grace period. The most critical part of applying for credit cards is to already have a credit card management strategy in place.


What Compares to the Best Small Business Credit Card?

A business credit card can be handy if you need to charge a plane flight or make other purchases online. On the other hand, these cards don’t actually deposit cash in your bank account. Certainly, some cards offer cash advances, but these are usually very limited and more expensive than purchases. It’s not likely that you’ll be able to pay your employees with your company credit card, but you can pay them with the money from an online business loan. Meanwhile, you can still pay bills electronically with the cash in your account.

You might spend some time comparing small business credit cards with online business loans. A business loan can provide you with many of the same benefits as a company card, and it helps with some things that business cards cannot. You may also find that you can access a higher credit limit with friendlier terms if you choose a business loan over a business credit card.