Small-business credit cards offer some advantages over other financing choices, and most come with unique terms and perks, such as rewards points and small-business credit card cashback for spending.
Often you can get no interest on purchases or a bonus to simply sign up. Take a little time to compare and decide what is best for your small business so you can be aware of the options available to you while avoiding the mistakes that befall many small business owners.
Cards that offer rewards points are only of benefit if you are able to buy items that will be of use to you, such as business supplies, or use them for travel expenses like gas and also small business credit card cashback for spending. Be sure to utilize your rewards points before any expiration dates apply.
Interest on Credit Cards:
Zero-percent interest rates are usually good for a very limited time and can be a way to help yourself in a business situation where you may be low on short-term cash.
Once the no-interest APR ends, so does the benefit of this particular deal, and you will need to be aware of your monthly interest rate. Paying the entire balance each month, if possible, will of course be to your financial advantage. But if you are not able to pay the entire balance, at least be sure to make your payments on time, as this will save you a lot of stress, financial grief, and possibly damage to your good business name.
Sign-up bonuses can seem very desirable and can actually be helpful. You will generally be required to spend a good deal of money to get the bonus, though. For example, if you can afford to purchase $5,000 worth of office furniture in order to receive a $500 bonus, you have saved yourself 10% on your purchase.
A small business credit card is just like any other tool in the business world. It can be very effective when used in the proper manner and at the time that best meets your business needs.