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Sunday, September 02, 2007

Which Small Business Credit Card is Right for Your Company?

by: Joshua Shapiro

Credit cards abound for small business owners, just as plenty as there are for your average consumer. Perhaps the difference between small business owners credit cards and those for consumers, though, is that the small business cards offer even more perks and benefits. But of course, some are better than others, so it is crucial that you do your homework and pick the right card that can help grow your business.

It shouldn’t be too hard. According to the latest estimates, up to 90 percent of the banks on the market are planning to unveil new credit cards designed for the small business owner. This is a big shift from even just 10 years ago, when most banks viewed small business owners as a risky lot. After all, nine out of 10 small businesses eventually fail. So no bank wanted to be left holding the tab for a client who ends up being part of this vast majority.

Banks still will not give out small business owner credit cards like lollipops at the doctor, so you will still need to prove to the bank that your business is on the road to success, and that your financial shape is all in order. However, if your business is in good health, don’t be surprised if some banks compete after your business.

Some of the basics in comparing small business credit cards include checking the annual percentage rate of the cards. This may be more important for small business owners compared to consumers, because businesses are more likely to hold onto their debt throughout a year. That means you’ll want to have a pretty low annual percentage rate on your card in order to keep your interest payments to a safe and comfortable minimum.

Another thing is to consider the perks of the card. Running a business involves planning on the fly, taking prospective clients on trips and out to dinner, and being able to buy things when and where you need them. Your card should be flexible enough to handle the lifestyle of the small business owner. For instance, if you will travel a lot for work, you may want a card that provides discounts on airfare and rental cars, or better yet, some sort of rewards point system geared toward travel.

All in all, you can be assured that there will be a small business credit card that is right for your company.

About The Author

Joshua Shapiro recommends Find Credit Cards for finding a small business credit card. See http://www.findcreditcards.org/type/business.php for more information.

joshuashapi@gmail.com

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