There are a lot of handy tactics to managing a growing small business – hiring a small business investor or consultant, having a strong grip on your company’s budget, etc. But small business owners, especially those in college, should certainly consider acquiring a small business credit card as an integral part of the company. Having one of the best small business credit cards can make day-to-day business less problematic and more efficient, with the right spending attitude.
Enhance Purchasing Power Wisely
A small business credit card is good to have on hand to buy things the business needs as it needs them. It is important to keep a handle on spending, though; a business credit card is only useful if the credit limit is readily available. Reconsider any purchase that will max out a credit limit if it is not possible to pay the balance down within three billing cycles.
Some credit companies also usually have better rewards programs and interest rates than personal cards, so it’s really up to you to decide what you want – either invest in those airline miles, or consider different options like hotel rewards, gift cards, or good old cash back.
Another thing you need to know is to always pay off the card before you start getting hit with fees – otherwise, the interest adds up rapidly and the purpose of getting the card to begin with is utterly defeated. However, if a card’s balance is payable within that three-month period, if not sooner, then it is a great way to buy things like new equipment or advertising without having to wait. In certain business areas, the ability to promptly advance can make the difference between failure and success.
Wading Through the Options and Features
Small business credit cards come with choices that are similar to the ones available on big business cards. The most important considerations are annual fees, interest rates and rewards programs. Different business needs will determine the best card features. For instance, sacrificing a superior interest rate to take advantage of reward miles that accumulate quickly is perhaps a better option.
On the other hand, a low-interest rate is preferable when travel is not a concern. While many prefer to get away with no annual fee, doing so often means settling for a higher interest rate or rewards programs with fewer benefits. Look for cards that balance these features.
Knowing When To Invest in a Card
Realistically, many businesses over time have created more problems than solutions when the acquisition of a credit card, through overspending, compiling debt, or financial foolishness. To consider when your company might need one, it’s best to take a look at your current financial situation (have you been getting along fine without one? Would having credit help or hurt your business?) and looking at the future projections of your company. Looking into your small business private equity options can be helpful as well.
How to Choose a Good Card
Credit card choices are abundant, and it is difficult to decide which is the most appropriate for a business. While it is possible to input funds into a small business with a personal credit card, it is better to opt for a small business card. These cards come with special features specifically for small businesses, and can help launch your company into greater profits with the right choices.