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Seven Precautions You Must Take Before Attending Business Credit Cards | business credit cards

Like many personal credit cards, business credit cards also give consumers a revolving line of credit with which to make regular purchases. But there's where the similarities end. Business cards usually give cardholders access to a credit line that may not be used until the cardholder has met his or her monthly bill obligations. And as with personal cards, some business credit cards will charge certain fees for cash advances and balance transfers.

But no matter what the features and rewards on a particular business credit card may be, it's important to use them responsibly. As with any other credit card, business cards must be used wisely – with every purchase and payment made. The best business credit cards will offer low interest rates, flexible terms, and minimal usage fees to maximize the benefits and minimize the fees. So, what should a business owner to look for when shopping around? Here are four of the most important features to look for in the best business credit cards.

Rewards programs – Cash backs and other incentives can be a great benefit for cardholders. Some business owners find that rewards programs can eliminate the need to carry cash, making transactions much more convenient. Others find that the benefits of rewards programs encourage them to purchase more, which can ultimately save money over the course of the year. Still others view rewards programs as an enticement to increase business transactions and take advantage of special offers. Whatever the case, business owners should carefully consider the rewards offered by their chosen credit card issuer and evaluate how those rewards might impact their spending patterns.

Balance transfer options – When comparing business credit cards, look to see how each card offers different perks and rewards programs. Many credit card issuers feature a standard interest rate and a single billing cycle with a specific period during which balances can be transferred. Look to see if the card issuer has a special deal for balance transfers, as this can make transferring existing balances to the card significantly cheaper over the long term. Also, check to see if the company has any special deals for off-season months, as it's more likely to offer discounts during these months as opposed to the regular billing cycle.

Extended payment terms – Another thing to keep in mind is the number of months that the business credit cards have adjustable payment terms. Look to see if the cards have payment terms that are suitable for longer term payments. In general, longer payment terms are better for businesses that regularly make purchases. If you regularly make purchases at stores, you'll likely benefit from shorter payment terms to make your payments more affordable.

Travel rewards programs – If you frequently travel, look for business credit cards that offer travel rewards programs. Most companies that offer travel rewards will charge a per mile fee for miles taken, but this can often be passed on to customers in the form of cheaper airline tickets. Look for a card that offers free travel points when purchases are made at selected locations. These are usually small cash back rewards but you can also choose to earn air miles instead. Either way, look to find out if the actual amount of cash back that you earn is equal to or more than the cost of your regular purchase.

Allowability of expenses – Finally, look to see if your business credit cards offer allowances for various expenses. A lot of companies allow you to set up allowances based on how much you plan on spending. If you have a particular plan for every purchase, then these allowances may be more helpful than a standard expense account. However, if you're a beginner, it's still okay to go with a standard expense account so that you won't get overwhelmed with expenses once the business has started growing. Cards that don't offer allowances will only have a fixed amount pre-determined for expenses and you should be responsible for making those expenses up in order to use your card.

As you can see, business credit cards come in a wide variety of different options. While they all offer many different benefits, it's important to know which rewards your company should choose as well as the limitations of the account. As a beginner, you should focus on getting a credit card that offers free rewards and no restrictions. As your business grows, look to include additional perks such as business transactions fees and additional cash back.


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