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March 2016

How to Apply for Business Credit Card Benefits

 

If you own or are starting up a business, you may want to consider applying for a business credit card. Business credit cards can help your business grow and can make sure you are prepared to handle any financial emergencies fast. If you’ve never applied for a business credit card before, you may be wondering how to apply for business credit card benefits. The fact is, applying for a business credit card is extremely easy, and you don’t need any special knowledge to understand how to apply for a business credit card.

 

How to Apply for a Business Credit Card

You might think that your business needs to be a certain size, or that you need to be an established business in order to apply for a business credit card. In fact, nothing could be further from the truth. You can apply for and get a business credit card even if you don’t have a business at all. Simply list yourself as the sole proprietor of whatever available company name is to your liking and fill out a business credit card application. The credit card company can use your personal credit information to determine whether or not they want to extend you credit. In fact, even if you do have a business credit profile, the credit card company is likely to check out your personal finances as well as your business financials.

 

Procedure on How to Apply for a Business Credit Card

The first thing you’ll want to do is do some research on the different business credit cards and what they offer. Different credit card companies may offer generous sign up bonuses for new businesses and you’ll want to take advantage of this. Of course you should also be aware that some credit card companies offer generous introductory rates that balloon into less favorable rates down the road, a tactic you’ll want to avoid as a growing business. You should also get a copy of your personal and business credit reports and scores, just to see where you stand and how you appear to perspective lenders. The better your credit rating, the more likely you are to get high credit limits and favorable interest rates. Then it’s simply a matter of submitting the application and waiting for approval.

 

What to Do with Your Business Credit Card

You may wish to get multiple cards to give to your employees, so that they can make purchases and perform necessary transactions when you are not available. Be sure to keep careful records of who is spending what on the company credit card, as a few missed payments can damage your business credit rating and make future borrowing more difficult. You shouldn’t need business credit cards from more than one or two credit card companies. If you find that you do, you may want to consider scaling back unless there are special circumstances necessitating more credit cards. If scaling back is not an option, consider applying for a higher credit limit or a line of credit rather than having too many credit cards on your business account.

 

Best Features for Business Credit Card for a Start Up Company

 

What’s the best business credit card for start up companies? There are a number of great business credit cards on the market today, and you might want to get two or three for your business (although you probably shouldn’t get more than this). Business credit cards give your business the financial flexibility to get off the ground and be successful from the beginning. Choosing the right business credit card for the startup you are founding will largely depend on the features that that particular card offers. Here are the features you should be looking for in a business credit card for a start up company.

 

Competitive Interest Rates

Don’t get distracted by special rewards or features and ignore the interest rate. It’s unlikely that the financial value of any perks will make up for the amount of money lost by taking a card with a high interest rate. Be sure to compare interest rates for different cards, and keep in mind that the interest rate you sign up at may not be the interest rate you can still expect after six months of membership. Try to find a card with a 0% introductory APR and a competitive interest rate once the introductory period has passed.

 

Multiple Cards

One of the great conveniences about business credit cards is the ability to give cards to all of your employees so that they can make purchases and conduct transactions in the service of the company. Try to find a business credit card that offers free cards for all your employees to use.

 

Rewards

Different business credit cards will offer different rewards for using the card frequently. Some offer cash back, others offer travel miles. Still others may offer office supply rebates. Pick a card with rewards that are synchronous with your business needs. If you own a bookstore, you probably don’t need a lot of travel miles. On the other hand, if your business involves international transactions, travel miles might save you a significant amount of capital. Find the credit card rewards that are right for you and your business.

 

Other Business Credit Card Features

There are other features that different credit cards offer, such as reduced annual fees or promises of exceptional customer service, but the features above are the ones most start ups will want to prioritize. Annual fees are usually fairly low relative to the money you can save with a low interest rate and a good rewards program, and you should expect satisfactory customer service from any business credit card company. The important thing is to layout your company’s needs, do the proper research, and find the business credit cards that fit. If you are able to do this, you can expect a successful relationship with a business credit card that can last the life of your business.