Business credit cards can offer quick solutions for companies that need additional cash flow, while funds or access to funds may be low. They can be perfect for small businesses and larger corporations alike. Most companies offer the ability for businesses to have several cards for multiple employees with access to the same account. Some can even be personalized with each employee’s name, or other safety features.
Many business cards come with an annual fee. While many of the larger companies offer accounts with no annual fees as an incentive, if a card doesn’t have an annual fee it is often at the sacrifice of a higher interest rate. If looking into a business card, be sure to find one that suits your needs. Having an annual fee may be worth it if the rewards are good. For example, the Chase Ink Cash Business cards have an extra bonus for office supplies of 5% cash back over their standard bonus of 1% cash back for all other items.
Other Fees and Interest Rates
Business credit cards can be a life saver for small businesses or a final nail in the coffin for a struggling one. The biggest problems that many run into with business credit cards are the shift on the interest rates, or the start of fees that begin when certain qualifications aren’t met. Some cards begin having a fee or an increased APR after a certain time or when a certain purchase level is not reached.
Specific Business Cards
American Express is one of the most prevalent card companies in the business credit card industry. American Express offers several cards like the American Express Business Platinum Card. This card has an added cash back bonus after a spending threshold is met within the first three months of owning the cards. While this card holds a heavy annual fee of $450, the trade off is that there are no pre-set spending limits.
Another specialized choice is the Chase Ink Bold card. While this card has an annual fee of $95 after the first year, it boasts no interest. This card, along with the entire line of Chase Ink cards, requires excellent credit.
If you ever need to fly for your business, it would benefit you to get the bonuses for frequent flyers like the Delta Sky Miles card from American express. Sometimes the best choice is to give up cash back for other perks. The Plum Card from American Express offers a very low annual percentage rate of 10%, and even lower when paid off sooner, in lieu of reward programs.