Credit cards for business use provide a host of benefits also including travel insurance, cashback, free supplemental cardholders, 0% on purchases and itemised billing.
How do business credit cards work?
Business credit cards work much like conventional credit cards in that clients will be given a credit limit and the balance can be paid off over time, subject to a least possible amount of money being repaid each month.
You can also go for how many credit cards you like on your account banking on how many support staff you have-- or how many staff users you want to issue a card to.
Just like a private credit card, a much better business credit score can usually net you a more suitable interest rate or else other benefits such as interest-free periods, reward points or cashback.
It's worth noting that business credit card providers may also check your personal credit score which can also affect the outcome of any applications.
Exactly what types of business credit card are available?
As with personal credit cards, there actually are numerous types of business credit card available, each with a variety of perks and interest rates.
There certainly are cards available with interest-free periods on purchases, which are a great means to manage cash flow if funds is tight; while cards that offer rewards points or cashback are ideal you use it routinely.
Don't forget though, for a cashback deal to be worth your while, you must ensure that you pay the balance off in full at the end of each month. Don't fall foul of the interest charges which can usually vary from between a representative annual percentage rate (APR) of 16% (variable) and 26% (variable).
Other usual incentives include; free travel cover, free purchase protection and the facility to add additional card holders free of charge.
What are the advantages of business credit cards?
When setting orders over the phone or online, business credit cards offer a convenient way to pay for services or goods and can be used. There is also the added convenience of helping staff to buy work related items without having to submit an expenses form.
In addition, you can make use of the card to track expenditure and specify a different credit limit for each employee that carries a card. And presenting members of staff a company credit card will be seen by them as a mark of trust-- which is great as long as they don't abuse it!
If used in the right way, business credit cards are also an excellent way to build your businesses credit profile and, provided you pay off the balance at the end of each month, you will have accessibility to interest free spending every month.
Why use comparison tools to compare business credit cards?
If you regularly spend on your card and clear the balance at the end of each month, then a rewards or cashback card would be more beneficial to you than a card with an interest-free period on purchases.
Or if you are making use of the card to make a substantial purchase that you will not have paid off by time any interest-free periods end then you may be better going for a card with a lower standard rate.
In addition, if anyone use the Savvy Searching tools, this will likely look for which products are best suited to you and rate your chance of approval so you don't have to run the risk of getting rejected for credit-- and it won't leave a 'footprint' on your credit file.
As with any financial instrument, when looking for a business credit card it's important to review the different products out there to make sure that you get the right one to suit your needs.
And some business card comparison tool will instantaneously compare a range of business credit cards so you can make an informed decision on which card is right for you and your business.