Some companies are turning to a small business credit card options as a way to gain access to a line of credit that will offer the opportunity to grow their business as many companies have stated access to capital and credit have been tight over the past months. Particularly, small business loans which have been sought out by numerous companies have been hard to find in some cases, but there are also options for these credit cards available to small businesses so that a business owner may have the funds to invest in their company with the hope of seeing prosperity.
Understandably, as with personal credit cards, there are a variety of options for small businesses when it comes to finding a small business credit card to fit their situation and needs. For this reason, small business owners are often prompted to research various credit card options as certain small business cards we will obviously offer more benefits and rewards than others and, concerning interest rates, some cards are simply more affordable than others as well.
Yet, comparing various small business credit card options is usually one of the first things a business owner does when seeking out a business line of credit, but there are those who feel that some business owners may want to stay away from a small business credit card altogether and, as an alternative, use a personal credit card for their business.
An article on Foxbusiness.com states that legislation that provides protection against cardholders through the CARD Act does not cover small business credit cards and, as a result, some business owners may want to reconsider a small business card when it comes to their purchasing and small business capital needs. In the article, Odysseas Papadimitriou of CardHub.com writes, “personal credit cards provide far more stability and protection than business credit cards, for which interest rates can be raised at the credit card company’s discretion. So, if there is even a chance you will be carrying a balance on the card you use for your business, opt for a personal credit card.”
Yet, this is not to say that small business credit cards should be avoided at all costs as they obviously bring about certain benefits to which business owners may use to make their company more efficient and profitable. One of the main benefits of a small business credit card is the fact that they usually have a higher line of credit and allow for easier business analysis, among other things. However, concerns over sudden increases in interest rates often require that business owners use caution when seeking out a small business credit card for their company as these rate increases could cause overall costs to increase or a business owner to suddenly be met with more expense related to their card than they had previously figured into their budget.
However, there are, again, numerous opportunities for small business owners to acquire a small business credit card that may be helpful for their company and, despite drawbacks on small business credit cards, they are one way which business owners have been able to gain access to credit that has allowed them to make the company more prosperous and profitable, but again, advisers do suggest caution and research before choosing a particular small business card.