Small Business Financing Through Business Credit Cards–Average Rates On Cards And Benefits Of A Business Line Of Credit

Small businesses in need of financing to purchase a variety of inventory or office supplies for their company may have options through small business credit cards that can offer not only benefits and rewards for a particular business, but with more credit card offers coming from various financial institutions, there are arguments that small businesses may be able to find an affordable interest rate on their card as well. While there have been offers for incredibly low introductory rates on new consumer cards, there are also some financial institutions offering the same intro rates to businesses, which may be helpful for a set period of time during which a company can make purchases and repayments with little or no interest charges.

However, financial advisors do point out that there are some differences when it comes to business credit cards that business owners must watch out for as not all credit cards can be helpful for a particular business, and when it comes to a new business that may have little or no credit history, a high interest rate may be associated with their card and, obviously, this could be problematic if a business card carries a balance and interest costs increase.

While resources like CreditCards.com and Bankrate.com show that the interest rates on a variety of business credit cards will range from as low as around 13% to 22.99% or higher, again, the rate that a particular business gets on a credit card will depend on their particular situation. Yet, many businesses are drawn in by rewards and extras that may be offered on certain cards as bonuses and deals related to things like travel can greatly help a small business owner or any company whose employees may have to do a great deal of flying for company purposes.

Yet, looking at a business credit card’s interest rate will obviously be the first step a cardholder must take, however, financial advisors have pointed out that some small business owners will pay for a more expensive card thanks rewards or perks, but may never really used them for their business. Eliminating unnecessary options when selecting a credit card may be helpful in not only finding more affordability in the card, but when numerous perks are offered, financial institutions usually find ways to make up any losses they may take through either fees or a higher interest rate.

This is not to say that all business credit cards that offer incentives or rewards will always be more expensive, but consumers need to wade through any options they may have before selecting a card for their business, particularly as these forms of credit cards do not offer the same protection for a cardholder under the CARD Act as consumer credit cards do. While, in most cases, a small business credit card can be a great tool for the financial needs of a business, selecting the correct card is something more financial counselors have been stressing due to the fact that banks are beginning to make more credit card offers available to a wide variety of consumers.

However, a small business credit card, like one that may offer a low introductory rate or 0% interest for a set period of time, or could cut costs on expenses like travel may be helpful for a particular business that, for instance, may simply be starting and could use a low introductory rate to make purchases and pay them off without incurring interest costs or, for other businesses, saving money on travel will obviously be beneficial if it is a major business expense.

For these reasons and more, business owners who are considering a credit card for their company will have a great deal of options through which they must shuffle, but if small business credit financing is right for a particular company, consumers who do proper research and compare offers that are specifically beneficial for their company have been able find a valuable asset that has been used to help their company in grow and expand by reinvesting in their operation through credit card purchases.