Small business owners need a business card dedicated to their business needs. Are you a small business owner, without a business credit card? If yes, chances are you are missing out on multiple powerful tools. Most new business owners think that their credit cards are apt for business expenditures. The truth is that business credit cards provide better facilities. It is a smart option from the accounting and logistical standpoint. And each credit card comes with its perks, benefits and rewards depending on the lender.
The perks and benefits on credit cards also depend on the user qualifications! The cards come with multiple pros and cons. And it’s up to the user to decide what’s essential for them to. Are you searching for a credit card that will reward you with frequent travelling? Or are you planning to subsidize the cloud-oriented subscriptions? It would help if you decided this.
Every credit card used for business or personal purposes comes with a set of advantages. To know more about this, you can check out Chase Freedom credit card review. Before going on to the extra perks and benefits, the apparent features to look for in a card are:
- Helps to separate personal and business expenditures – Irrespective, of the fact whether you are a business owner or the sole proprietor, it is essential to keep personal and professional expenses separate. It is beneficial when you file for the taxes. Else there might be situations where your assets might get seized to cater to your business debt.
- Helps to develop your business credit – It is essential to keep your business credit score separate than the personal credit score. When you maintain your business credit better, it will help you to opt-in for more affordable financing options in future.
- Help to generate low-interest rates – Few credit cards provide a zero or a very low introductory APR for a specific time. And this can act as an interest-free loan as well.
- Enables more robust expenditure – Several business credit cards have increased credit limits as compared to the personal cards. It saves the user from counting on multiple credit cards.
If you’ve decided to opt-in for a credit card, you need to know the types of perks and benefits you want. Some of the crucial ones are:
- The sign-up bonuses
Some cards provide a bonus amount or points in the first few months of using the card. The way these points get redeemed by the user differs from one card to the other. However, you can use the card to pay the balance. Alternatively, you can even use it for partnering the accounts for gaining the added discounts on business services, airfare, hotel charges and the like.
It is essential to realize that different cards will provide different sign-up bonuses. However, just in case you see anything that is between 50,000 points to an increasing 1,25,000 points, it can sum up to several dollars in any discount. For instance, there are specific business credit cards, that provides you with 80,000 points on spending $5,000 within the first three months of the availing the credit card. And later you can redeem the points for an amount of $1,000 as your travel points.
- Reward multipliers in chosen categories
Today, most cards will provide you with points with every purchase made. However, a few award point multipliers are in selected sections, for instance, search engine/social media advertising, utilities, shipping expenses, travel and many more. It denotes that every dollar that gets spent on these sections will offer added points which you can redeem, discounting every purchase.
There are a few credit cards that outline the section that will always offer a multiplier. However, there are a few that will enable you to choose the categories you want every month. It indicates that you have the chance to select the spending type that provides you with the majority of points. And you have the opportunity to vary it, based on the requirements every month or annually as well.
- Free subscriptions as well as discounts for useful tools
A few of the most crucial tools for small businesses that get used are the web or cloud-based platforms. You will come across the credit cards that can offset the expense of the tools by offering free subscriptions.
For instance, there are a few credit cards that provide a yearlong free subscription to the G-Suite. This suite comprises of collaborative and useful apps such as Google Docs and Sheets. It is primarily for the businesses that are interested in expanding their ranks without shelling out too much money on the job postings. Additionally, there are other cards as well that provide thousands and hundreds of dollars for credits for customer support, web hosting and customer relationship management.
- Car rental insurance
Do you have to rent a vehicle during your business tour? Or do you have to make a client delivery cross-town at the eleventh hour? There are a few business credit cards that provide the best car rental insurance. And this bonus frees you from the need to buy any costly plans via the car rental company.
- Zero annual fees
There are times when you don’t require all the whistles and bells of the credit card bonuses. All you need is just a basic and standard credit card which provides a reduced APR, and that keeps track of all the business spending. It will be useful if you got some cashback or earned a few points as well. Today, you can have access to several basic business cards that have zero annual fees.
In some way or the other, the business credit card perks are a tool for offsetting the fee that you pay annually for maintaining the account. You can get it by having access to a decent card that charges no annual fee for your first year of using the card. Some cards have no annual fees forever as well. And this helps business owners to save for other expenses.
Once you keep in mind the bonuses mentioned above, you can choose your credit card better.