Home » Finance » Credit

How To Choose A Business Credit Card

Aug 17, 2007
A business credit card might a be good option if you are a business owner looking to streamline your accounts management. Here are some factors to consider when choosing a business credit card.

Look At The Interest Rate

One of the most important issues is the annual percentage rate (APR). This is the interest that lenders charged on any outstanding debt. The APR varies considerably between lenders, so it is worth shopping around for one that you find acceptable. You should also pay attention to the interest rate for cash withdrawals. As with personal credit cards, the APR on cash withdrawals can be very high. This is worth considering if you intend to use your business credit card to withdraw cash.

Check Out The Fees

Some business credit cards charge annual fees. These can range from around 20 to as much as 75. However, there are still some business credit cards that do not have a fee, so it is worth considering these if the other factors meet your requirements. Another fee to consider is the application fee. It may be worth searching for a credit card provider who will waive this fee.

The amount of credit you will get and the repayment period are crucial aspects for managing your business. You'll want to get as long a grace period (interest-free period) as possible.

Business Or Personal?

Like personal credit cards, some business credit cards also offer rewards. These can be points that can be applied to purchases or useful rewards such as air miles or travel points of some sort. However, the range of rewards for personal credit cards is far greater.

Some business owners may be tempted to manage their business spending via a personal credit card, but this is best avoided for three reasons. First, the credit limit given will not match the kind of credit limit a business credit card might get. Second, the interest rates and repayment periods on business credit cards are designed to help with business cash flow. Third, if you find yourself in debt, any spending on a personal credit card is your personal liability. In comparison, spending on a business credit card is charged to the business rather than an individual.

Credit Or Charge?

Business owners also have other options for managing their finances. Some can choose debit cards. This will mean that there is no line of credit and business owners can only spend what is in the business account.

Another option is a business charge card. Like a credit card, there is often a fee for having a charge card, but there is no APR and no minimum repayment. This is because any spending on the charge card must be repaid in full at the end of the pay period.

Whichever option business owners go for, there are a number of good reasons to use a card for managing business expenses. This can be especially useful for businesses with a lot of employees as they can use a business credit card to track expenses and cut down on in-house accountancy.
About the Author
Joe Kenny writes for the Credit Card Guide, offering views on credit cards in the UK, visit them today for some great 0% balance transfer offers and start clearing credit card debt today.
Rating:
Please Rate:
(Average: Not rated)
Views: 136
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources