A business credit card is available to all small, big, and sole proprietorship businesses. It gives the individual the freedom to expand his/her business without the interference of personal credit scores and financial status for greater creditworthiness. This also helps one to maintain a clear record of all business transactions. If your business is a sole proprietorship firm, you can apply for a business card with your social security number, this makes it simple and easy for small-scale businesses with no annual fee scheme. In some large-scale businesses, you are expected to produce the employer identification number to own your business credit cards.
Small business credit cards
These cards provide proprietors with a credit limit to purchase and withdraw cash for business purposes. They are similar to consumer credit cards; when the payment is not settled on the billing date, they are levied interest charges for the transactions and the pending amount. The positive aspect of owning a small business credit card is that it never affects your personal financial status. American Express, Capital One, and Citi Business offer various credit cards with no annual fee scheme and various other offers to enhance your business funds.
Why get a business credit card?
These business credit cards can add more scores to your personal credit scores. It is a wise option if you chose these when you have a huge sum of balance. In case you have a default in your business line, it may affect your personal savings as it been serving as an assurance. The bonuses that various business credit cards offer you can be a boon to your business, enjoy the various offers they bring. You can avail various loans if you maintain good creditworthiness based on which banks will sanction you with better interest rates.
Best business credit cards for you
Business Platinum Card from American Express
This credit card provides you with a welcome offer of membership reward points up to 50,000 after the first purchase of about $10,000 within three months of your membership with the business credit card. This keeps adding on to your points after every purchase, giving you more benefits and offers. These membership rewards could be applied to your airline bonus to avail the best offers.
Ink Business Cash Credit Cards
Get a business credit card that is great for small businesses, e.g., the Ink Business Cash Credit Card. Earn cash back offers on your every purchase. They do not charge an annual fee and get employee cards with no additional cost. Earn 2% cash back on combined purchases on each anniversary year. This is a great option if your annual business income is below $25000.
World Elite MasterCard from Barclaycard
Travel with ease on your business trips having the best travel deal offered to you and earn extra miles on your purchase. Get access to the mobile-friendly community of Barclaycard to travel miles with happy experience and get 5% redemption. They do not charge foreign transaction fees on purchases made during your travel abroad.
These institutions offer more business credit cards with various offers that are subjected to terms and conditions that apply for the offer period introduced by the company. For more details and additional information, take up expert advice for the sector to treat you with the best business credit cards for your business.
Reasons for business credit cards being good for small business
There are quite a few reasons for business credit cards being more useful to small business persons and sole propitiators. This is because money spent on every little thing matters in small business concerns, and cash flow might be irregular throughout the month, which could be a great problem. Getting a business credit card could be the best for business people who travel frequently for their work, the bonus rewards could be of great use. This is a good idea for business people who spent more on their office equipment and salesmen who want to increase their travel rewards. It is also a good choice for self-employed individuals and freelancers.
Tips to manage cash flow with business credit cards
Managing cash in the most efficient way for business is the most difficult task one could experience in any business concern. There are times you might face a shortage of money flow and less income, such events are likely to happen when late payments are made by customers or excess purchases are made in the business. Business credit cards could act as a lifeline in such situations. When there are pending payments to be received and there is a shortage of cash flow and purchases to be made, it is a wise option to get a business credit cards to support your major financial needs of the time.
Business credit cards could be a great choice if you spend more on travel, food, and other purchases. The rewards they offer you in every target stage could be used for fuel, dining, and traveling expenses during business trips.