5 things to know about small business cards

By Chesutiko

If you have opened a small business, you may have opened a credit card account to finance your expenses. For those seeking advice, here are five things to examine when deciding which small business credit card is right for you.

1. Consider your credit score: A good credit rating works to your advantage as a business owner by enabling you to easily open new credit card accounts and providing access to loans and other financing options.

2. Know your payment-plan options: Read the fine print so you can anticipate the minimum monthly payment of your credit card balance. Be sure you are aware of this option and have the funds available to meet payment deadlines. Some small business credit cards come with additional benefits, such as low-interest rates, which make paying off interest-bearing balances feasible.

3. Beware of introductory offers: Small business owners should be particularly aware of introductory offers for low-interest credit cards that provide only short-term benefits. Always carefully read the terms and conditions of any offer that sounds too good to be true. If you still aren't sure after that, it's best to do more research.

4. Stay organised: Having a card specifically for business expenses helps better organise your funds. You can use your small business credit card as an opportunity to establish a clearly defined line between your personal and business credit and better budget your money.

5. Complement your business needs: Small business credit cards specifically cater to entrepreneurs and the unique needs and financial risks they inherit. By evaluating your monthly expenses, ability to pay off monthly credit card balances and access to outside funding, you can more easily determine which card's features best suit your business' needs.

Article by Chesutiko 

Published: June 5, 2009