Anyone who has ever carried a small business business credit card can tell you that not all small business credit cards are created equal. Selecting the wrong one can cost your company money and can cheat your business out of many small business credit card perks. Because the bottom line is everything when it comes to a small business success, there are some things you need to look for before applying for any line of business credit. Here are three critical factors to consider when applying for a small business business credit card.
1. Do They Understand Small Businesses?
I've already said that not all credit cards are created equal. The same can be said for businesses in general. Your small business has unique needs. You need a credit card company that understands this.
When applying for a business credit card, make sure it's geared towards small business. It's great if XYZ MasterCard offers individualized billing for employee cardholders and has a department to help arrange employee travel, but you'd probably be better off with a small business business credit card that offers cash-back rewards or discounts on office supplies. A card geared towards small businesses will understand this.
2. Interest Matters
In an ideal world you'd pay your small business business credit card off in full each month and would never pay a penny in interest. Unfortunately, we don't live in an ideal world. There will be times when unexpected expenses arise and they might not be paid off in full at the end of the month. Because of this, you need to look for a card that offers a low interest rate in addition to small business perks.
3. Add Up the Rewards
Once you've narrowed your credit card selection down to companies that understand small business needs and companies that offer a low interest rate, it's time to start calculating the rewards.
The small business business credit card industry has gotten quite competitive over the years. Because of this, there are generous rewards programs in place. This can mean great perks for your small business. Look for cards that offer concierge services, travel insurance, emergency cash and card replacements and, of course, rebates and cash-back bonuses.
Finding the best credit card for your small business will take time and effort, but when you're business is equipped with the best small business business credit card and is benefiting from the rewards, it will all be worth it.
