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If you own and operate a small business, you may benefit by searching for the best small business credit card to meet your needs and provide you with rewards or other great advantages.
Improves Your Credit Score
Businesses, like people, have credit scores. If you are just starting out or only have a small sole proprietorship, your business credit score may simply be your personal credit score. Make sure you pay off any outstanding debt and pay your bills on time to get the best credit offers for your business. Once you attain the right card for you, your score will improve because of the new credit you have received.
Offers Different Payment Plans
Some credit cards for small businesses are designed to be paid in full each month; others are able to accept monthly payments like a personal credit card. Determine how your credit card will be used in order to choose the type of card you need.
It's ok to choose two different cards to meet your needs. You might choose a card that offers cash back rewards for the monthly expenses you know you will be able to pay off in full each month and choose a card with an extremely low interest rate for long term debt that will take you longer than one year to pay off.
Great Introductory Offers
Credit cards target small businesses for special offers like low or no interest rates during introductory periods. Make sure you aren't so swayed by an introductory offer that you fail to examine the long term rates and policies of the credit card company. If you do obtain a credit card with an introductory offer, be sure you know when it will end so that you can adjust your budget as needed.
Keeps You Organized
Keeping your business and personal expenses separate can be very helpful when it comes time to file taxes or especially in case you are audited. Not only does a business credit card offer you a way to cleanly separate expenses, but it also provides a detailed tax record of your expenditures.
Meets the Needs of Your Business
The best small business credit card will meet the needs of your business. The following options may help you determine what kind of card you need:
- Card Acceptance.-You need a card that will be accepted where you need to use it. While Mastercard is the most widely accepted card, don't eliminate Visa, Discover, and American Express if one of those cards has a great deal and is accepted where you need to use it;
- Rewards-Take advantage of reward cards if you can find a program that works for you;
- Reporting-Make sure the company from whom you obtain the card offers the spending reports you need for your business.
