Term Accounts and Charge Cards
Banks know that small businesses play an important role in driving the economy and realize growth in many sectors. Banks have therefore designed small business credit cards to suit their budget. Instead of lagging behind in debt, small businesses have been empowered by lenders who provide them with term accounts and charge card credit cards to improve their cash flow.
Lenders offer cash back rewards which small businesses can reinvest in their companies and realize profits. They also allow for longer periods of paying the credit card balances in full which gives businesses enough time to collect their account receivables from clients or turn over the credit to make sales and earn revenue which they use to pay the credit card payments.
0% APR and balance transfer offers
Small businesses benefit greatly from 0% interest rates offers expanding their operations during the promotional offer periods which extend for one year or more. Businesses of all sizes benefit by taking advantage of these interest rate promotions saving on interest while avoiding finance changes during this time, which encourages growth and investment.
The balance transfer offers help businesses consolidate their small balances on other accounts into one card. This makes payments easier because the business owner will have one monthly payment to make and one date to remember. Businesses can pay-off the balance on the account within the zero percent balance transfer promotional period or choose a low interest credit card.
Small business pitfalls and protections
Professionals like doctors, accountants, engineers and attorneys who own their own private practices can apply for both personal credit cards and small business credit cards to earn rebates and cash back rewards. However, small business credit card debts are not forgiven in case of business closure or bankruptcy but remain the sole responsibility of business owners who are held personally liable. Small business owners do not enjoy government protections like individual cardholders and the small credit debts become their liability when business winds-up unless it is a limited company which an entity on its own.
Find the best business credit card
There are various small business credit cards tailored towards gas rewards, expense reimbursements, airline flights, purchases and restaurants among others. When shopping for a card, go for the one that offers your business overall earnings but consider the other benefits as well. Some lenders offer strong theft and fraud detection and protection services which may be more valuable for your kind of business than the bonuses, rewards and rebates. Other business owners prefer immediate card replacement for their employees and reward points on travel, hotels and car rentals if they travel frequently. You should weigh short-term offers against long-term benefits and pick the best credit card for your small business needs that will extend your budget and help get value for your money. The best small business credit card is the one that offers the best service and benefits even after the promotional offers are over. Use the tables we have provided to choose the best business credit card that is right for your business needs.