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Credit Card Applications » News » Other » Credit Card For Small Business Owners

Credit Card For Small Business Owners

February 05, 2010
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The content is accurate at the time of publication and is subject to change.

Credit cards for small business owners need to be considered well. A report published in Business Week states that the choice of small entrepreneurs when deciding for their card should primarily depend on their needs - if they prefer to make a monthly full payment or transfer a balance.

Choosing Small-Business Cards

Basically, credit cards for small business owners are said to offer a lot of advantages. These cards can serve as a means of controlling expenses and tracking spending while retaining an audit trace for tax season. Rewards plans and valuable savings are also offered in numerous small-business cards.

However, it requires careful consideration to seize the offered advantages of small-business cards. The director of marketing for CreditCards, Ben Woolsey, said that small business owners should identify if they intend to use a credit card to transfer balance or as a borrowing vehicle.

Essentially, small business owners who plan to transfers their balance every month is advised to find a credit card company that offers the lowest annual interest rate also known as APR. Meanwhile, those who do not intend to use cards to transfer balance can look for a credit card company that offers different rewards programs. The additional fees included with the card should be verified to avoid unwanted reduction in savings.

Credit Card Companies with Competitive Offers

Nowadays, there are already different credit card companies with different offers. The Advanta for instance is a company that reserves their offers to small businesses. Advanta Platinum Business Card specifically offers 0% APR for the first 15 months. After that, a 7.99% fixed APR is offered. This credit card provider also offer 5% travel rewards or cash back.

However, Advanta card has downsides too. One of these is the $300 annual cap on the received reward of small businesses. Hence, this card is only advisable for small businesses with limited spending.

Another credit company that has a competitive offer is Discover. Discover just recently released a multipurpose business card that is especially designed for small business owners. This particular Discover Business Card presents 0% APR for balance transfer and purchases for the first 12 months. This is offered with variable rate after the given period.

Similar to Advanta, Discover also offers 5% cash-back bonus on entire office supplies and 2% cash-back bonus on gasoline. However, cash back is the only offered reward program of Discover.

Sastry Rachakonda, director of Discover Business Card, affirmed in the report that the use of small-business cards in the market is rapidly growing indeed. As a result, more credit card choices are available now for small business owners, so they are also advised to choose their small-business card wisely.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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