Savvy small or home based business owners are moving towards small business credits cards in increasing numbers; an estimated 45% now use these cards. Obtaining a credit card specifically for a business is often easier than getting a credit line approval. Additionally, the credit limits available on business cards are typically higher than on personal credit cards, $50,000 or more is not unusual.
The Best Business Credit Cards Offer Many Benefits
Business credit card offers provide numerous benefits to any new, small or home based business, especially in comparison to an owner using their personal credit card. They offer an excellent source of small business day-to-day operating funds by letting a business owner keep cash reserves in place while making a necessary business purchase such as equipment, supplies or inventory. Using small business credit cards also makes record keeping easier by separating personal and business expenditures. Some available cards offer perks such as travel miles or cash back percentages.
It is not hard to find Small Business Credit Cards
More than 75% of all US businesses are small and often owner operated with no employees. Credit card companies realize this and offer cards aimed at this market. Many now offer cards for small or home based businesses specifically. Some of the providers include: Capital One® with products such as Venture for Business and Business Platinum; Chase® with their products such as Ink Cash or Ink Ultimate Rewards; and American Express® OPEN with products such as Simply Cash Business Card or the Business Gold Rewards Card.
New Business Credit Card and Secured Card Options
New businesses lack the credit history needed to qualify for standard credit cards. These businesses can jump-start their credit history with secured business credit cards. Card holders must deposit funds to match their credit limit before obtaining a secured card. Some secured credit card providers and products include Applied Bank’s Platinum Zero Secured Visa® and Capital One’s Secured MasterCard®. Card holders will pay higher interest rates than with standard cards, but once a credit history is established, it is easy to switch over to an unsecured card.