As of late there have been businesses who have opted for a small business credit card rather than seeking out a line of credit through a loan, as an example, when it comes to meeting basic financial needs that their company may have. Yet, businesses who may be looking for a card here in the early part of June must make sure they compare rates on small business credit cards as these cards can bring not only different costs, in terms to the variable interest that may be associated with a particular card from a certain lender but there are some benefits that go beyond the general advantages a business may gain from this type of credit card use.
Currently, small business credit cards are averaging around 13%, in terms of their APR, but there are also some cards that may have a rate as high as 20%, but of course this will depend on a business’s credits score as to what rate they may receive. Offers for a variety of small business credit cards also can may advertise introductory opportunities that may allow some businesses to charge on their card at 0% interest for a set time, and this can be helpful if the business is particularly using their card to make purchases, like buying inventory. Many businesses have, as of late, begun to see the advantages of cards in this aspect due to the fact that they may be unsure out how much their inventory or necessary purchases will cost, and rather than applying for one large business loan, which may take longer to repay and be more expensive than they need, they can limit their expenses to the exact amount with the use of a card.
There are, also, some companies who look at business cards due to airline travel miles they received, cash back bonuses, or other benefits that are advertised with certain credit cards specifically tailored for a business’s needs, but as more banks are getting back into the credit card game, it is currently being advised to businesses to take caution when looking at not only interest rates and credit card offers, but what may come with a particular card. Simply put, there are some credit cards that offer a wide range of benefits, but a business may not need all of these add-ons and, as a result, may be meeting a higher cost on their card due to the fact that they have all of these bonuses associated with a card which may only be used for purchases and not the perks.
While there are major financial institutions that offer credit cards to businesses, credit unions and small community banks are also being explored by business owners at the present time simply as a way to compare what options are available in their area, and in many cases this is a good idea. Ultimately though, businesses must make sure that if they choose to acquire a small business credit card for the purposes of financing their business, they must make sure that they can not only get an affordable rate, if they plan to carry a balance, but they must filter out any credit cards that may be available to them that come with additional benefits, which may not be needed by their company, as these cards that offer a wide variety of incentives may be more costly.