Find Out If You Should Apply For A Business Credit Card: Pros And Cons

When you are running a business managing your money and finances can be one of the most stressful elements you may encounter. Ensuring that you always have the sufficient funds required to run your business effectively and efficiently is something that you need to ensure happens daily. To streamline your processes and your transactions then you may want to look at a business credit card. If you are looking for a credit card what are some of the things you need to consider, and most importantly what are the pros and cons?

Greater Control Over Your Business Finances

With a credit card, you can get a tighter grip on your finances. You can monitor your spending and focus as well on all of your outgoings. With a business credit card, you have limits and before these limits are reached you will normally get a forewarning, which is good news for both you and your business. When you get an advanced warning then you can never spend more than you can afford to, meaning that you will never get into a negative state of play with your business finances.

Fees and Rates

When you are looking at and comparing cards you need to know how much you will be paying back and what fees and rates are payable (if any). You may not pay a lot of attention to what the small print says or how much transactions cost, but when the little transactions and the little costs add up then you might find yourself paying more attention and taking more notice. Get to grips with the fees you are paying and with the rates you are looking at before you sign up. A credit card can offer you a quick way to get cash or finance a purchase, but you should know exactly what you are paying before jumping in.

Sign Up Bonuses

A lot of business credit cards can look appealing on sign-up, offering attractive and enticing bonuses, and if this is what you are after then great. However, signing up for a credit card based on its sign-up bonuses alone is not the way to go. Sign-up bonuses can be short-lived, and things such as low rates might not last for longer than a few days after signing up, so always be wary. The pros of sign-up bonuses are you get something for just getting a credit card for your business, which is what you were doing anyway, however one of the cons is that the card can end up costing you more than you already envisaged.

Rewards – One-off and Ongoing

Some cards offer one-off rewards on the card anniversary or for timely repayments, whereas other cards offer ongoing rewards to reward you for your loyalty. Are rewards important to your business credit card, or are they just an add-on that you are happy to have as a welcome addition – Do you need rewards, will it make a difference to your choice or selection of card?

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Your Credit History and Business History

When you go for a business credit card your business history, trading time and personal financial history, and the background will all be taken into account. You may struggle to get a card that is affordable if your personal history is bad or sketchy. When applying for a business credit card it pays to be honest. Declare debts and outstanding issues and this will put you in better stead than lying and being dishonest.

Greater Freedom Over Your Business Finances

Ultimately getting a business credit card will help you have greater freedom over your business’s finances. If you can control your spending then you can control your bottom line which is what every successful business needs to do. When you have greater freedom over your finances then you have more options available to you and you have greater choice. Having a good choice and selection of options ensures that you and your business don’t get stuck., or become stagnant.

Cashback Rewards

Regular cashback rewards can soon add up. Some cards give you cashback on all purchases up to 1% whereas some give you cashback for the first 30 – 90 days of use. Cashback can add up especially when you are making those larger rewards, so think about how important it is to you and your business’s finances.

Getting a credit card that is affordable for you and your business is essential. Taking time to weigh up all of the pros and cons will help you make a wise and informed choice.

Written by Eric

37-year-old who enjoys ferret racing, binge-watching boxed sets and praying. He is exciting and entertaining, but can also be very boring and a bit grumpy.

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