Small businesses are the backbone of the U.S. economy. It’s through their work and innovation that we can hope to get past these tough economic times. The economy not only has affected the consumers but also small businesses. Many business owners are finding it difficult to fund their business. Getting a business loan has become extremely difficult, and without proper funds many small businesses will have to close their doors.
Credit cards are one of the best ways to fund a business in these tough times. But as a business owner you want to make sure you get the best small business credit card that puts you in a position to not only run your business more effectively, but also save funds in the long run.
Most business owners take trips to conferences and networking events around the world. If that is you, then getting a rewards card can save your business a lot of money. Some folks prefer to get cash back towards future purchases. In that case, a cash back business card would be the better option. But there is no one size fits all card available for businesses. Finding the best small business credit card will depend on your business and cash flow model.
Best small business credit cards have the following characteristics:
1. APR: if you are buying a lot of equipment with your card or plan to transfer large balances to your new credit account, you want to make sure you get a credit account that gives you the best possible APR on balances and purchases.
2. Balance Transfer fee: If you are planning to transfer high interest balances to your new credit card, you want to make sure you don’t end up with a large balance transfer fee for your transaction. Cards that put a ceiling on the amount you can be charged per transaction are highly desirable.
3. Rewards: depending on your needs, you may want to settle for cash back or travel rewards. Whichever is your case, you need to pay extra attention to the rewards structure of your next business card.
4. Introductory Offers: cards that come with lucrative introductory offers for 12-15 months are extremely useful for businesses. For instance, if your card gives you 0% APR on your purchases for 15 months, you can buy the equipment that you need without having to pay high interest on it.
5. Grace Period: a few cards such as Plum allow you to defer your payments for a couple of months. That is extremely helpful if your business has cash flow challenges.
Finding the best small business credit card is not easy. But as a business owner, you owe it to your business to do your due diligence before signing up for a card offer. The right card can save your business invaluable time and money in these tough economic conditions.