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CREDIT CARDS FOR SMALL BUSINESS

There are numerous credit cards that were designed specifically for small businesses. Credit cards for small business will usually feature balance transfer and extended intro periods, low interest rates even for applicants with just good credit, and no annual fee. Most of the offers will have additional features associated with small business management, such as preformatted transaction reports and additional cards for employees. Both of these features come in handy during the tax season and simplify tax preparation process. There are other business related benefits that the issuers of credit cards for small business will throw in with the deal. Among such benefits one may find discount for shipping, services at Kinko’s, cash back rewards on business related purchases, airline miles and free hotel stays, and even gas rebate rewards.

Choosing the Right Credit Card for Small Business

Type of card: There are two types of cards that may be appealing to small business credit card owners: Business Credit Cards and Corporate Charge Cards. The difference between these two types of cards is in following:

APR rate and Intro Period: Choose a credit card for small business with a low regular APR rate. Jumping from one card to another to save on a very low or even 0% intro interest rate is not recommended for often requests of credit cards will damage one’s credit score. If a credit card that you choose for your business has annual fee rather than or along with interest charges, make sure that you can afford it.

Bonus Features and Partnering: As it was mentioned before, credit cards for small business will almost always have extra business related features to attract customers. If one uses services of a particular airline company or other service suppliers he needs to check whether this company sponsors a credit card. Very often such credit cards will help cardholders to save on services and products offered by the sponsors. Some of the cards will have cross-merchant discount or cash back programs for business purchases and services. These cards will give one a chance to save at such venues, as Office Depot, Kinko’s, FedEx, etc.

It is important to get the card that covers if not all, then at least most of your needs. However this will happen rarely. You may have to get a few credit cards for your small business to accommodate your business’ requirements. However, we recommend that you do not go overboard with the number of cards you get. It will not only drive your credit score down, but will create a chaotic situation when you have to bills and during tax seasons.

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