Small businesses have, as an alternative to loans, turned to credit cards as a way to finance certain purchases or various projects that they may not be able to afford entirely with capital from their earnings. Yet, when it comes to these credit cards, there are businesses who are also currently in the market as some credit card lenders are offering benefits and perks that will help businesses cut costs in some areas or even receive cash back on anything that ranges from office supplies to necessities like their technology needs. However, businesses have questioned whether there are still opportunities to get affordable rates on the small business credit cards, and the answer to this question will differ depending on the business owner.
Currently, we have seen rates on many business credit cards of around 13% to 19%, with some going so far as to even offer introductory rates of 0%, low annual fees, or even waive certain fees for a set period of time. Yet, as to whether the business owner is able to qualify for these particular perks on small business credit cards will heavily depend upon a business’s credit history, which is why there have been some businesses who when seeking out a first line of credit have opted for secured credit cards, if they need credit for the purposes of building a better history and score.
Many business owners have the impression that because loans have been hard to come by for many small businesses credit cards could be just as difficult, but this is not always the case and, as a result, businesses have been advised by some financial professionals to make sure that they do shop around in terms of what cards are offered, whether a credit card will be useful for their particular needs, and if they are in a position to meet the financial requirements of credit card use. Secured credit cards for businesses can help establish a history but if a business has a proven record of stable earnings and want to outline why an unsecured credit card will be useful for their business, this could help some lenders when it comes to not only offering a credit card to a business owner but some of these more advantageous aspects and rates of a card could come as well.
While business owners have struggled with when it comes to credit is depending on unsecured cards as a way to make purchases, stay afloat, or even buy inventory for which they are unsure they can sell or pay for. Understandably, not all businesses are in a position where they can handle debt on a business credit card at the current time, and many lenders are going to be able to discern that fact, but businesses who are able to acquire a card, may already have a business credit card, or feel that one of these cards would be best for their situation must take into account that with interest rates, even affordable rates that may be acquired, overall costs have to be factored into the final decision of any business owner before choosing a card.
Some businesses need help when it comes to paying for travel expenses, cable or Internet services, or simple supplies, but these perks are also one area where financial advisers want business owners to make sure they are cautious as some businesses may be paying higher rates or fees for these perks that may otherwise not be necessary for business’s credit card use. In the end, there are affordable rates on small business credit cards currently in place but even if a business will qualify for a card it doesn’t necessarily mean these rates will be offered and some businesses are still in a position where using a line of credit is not necessarily going to be affordable or helpful for their situation at the present time.