The best business credit cards 2017
Business credit cards help owners of a business generate quick capital and ease the process of managing business transactions. These help in generating reward points that are useful for airline miles and generate large cash-back bonuses. Business credit cards come with a higher credit limit. Credit limits help cash-strapped individuals or business owners, in this case, to purchase equipment and supplies that will help their business grow.
Before we discuss more on how to choose the best business credit cards 2017, here’s how you can differentiate between business or corporate credit cards and personal credit cards:
- Business credit cards come with larger credit limits as compared to personal credit cards.
- There are some business credit cards that do not work in compliance with the consumer protection laws. Protection laws under the Credit CARD Act of 2009 . This means that the grace periods and APR might change without prior notice.
- Business credit cards offer bigger rewards and generous bonuses when compared with personal credit cards. They also offer discounts on FedEx shipping and purchasing office supplies.
- Credit card issuing banks report credit usage by a business to a business credit bureau.
Factors to consider before selecting business credit cards
Business credit cards come with their share of benefits. Mentioned below are some factors based on which you should select from the best business credit cards 2017:
- Instant capital
A business owner or an entrepreneur is liable for instant and convenient capital through business credit cards. This instant capital can be for working capital or cash flow management, startup capital, or growth capital. - Separating personal and business assets
Business credit cards are useful in separating your business as well as personal assets, therefore ensuring you, your family and your business partners remain aloof from business liabilities. - Bookkeeping and accounting features
Some of the best business credit card offers expense management capabilities like setting spending limits on individual credit cards, adjust cash limits, access to account controls via mobile devices, and much more. - Tax benefits and minimization
As it is stated above, a business owner can also use business credit cards to fund the capital equipment purchases. This gives them an advantage of tax deductions. Some business credit cards come with accounting features that provide the simplicity of downloading the reports of all credit card charges for businesses. This gives the user an advantage of storing the records of verified purchases that come in handy in case of an audit.
Things to know before applying for best business credit cards 2017
- Eligibility and requirements
You don’t need to have a storefront, warehouse, or other hard assets to be issued a business credit card. You are eligible to get a business credit card or corporate credit card if you have a good credit score. Moreover, you do not need to be in business for years. Even if you have a bad personal credit score, you are eligible to get a secured business credit that will have a credit limit depending on the amount you have deposited in the bank. - Business credit history
Business credit scores range from 0 to 100, where the higher scores indicate toward a more creditworthy business. Credit bureaus collect your credit balance and the information on your payment from sources like the bank, business credit issuers, vendors, trade associations and organizations, and those organizations that are related to your business. You can also take a close look at the best credit cards and low-interest credit cards along with the best business credit card offers.
How to attract more credit card issuers
There are a couple of things you can do with your business to attract more credit card issuers. Some of them are listed below:
- Developing a business plan
A realistic monthly business budget and a plan will help your creditors and investors know where your business is heading. As a result, this will reflect your financial assumptions and how detailed your financial plans are. - Employer identification number
Having a separate employer identification number likewise indicates that you are treating your business as a separate entity from your personal asset. - Building credit history
The more established your business credit history is from your personal credit history, the less likely you will be required to sign a personal guarantee for your business loans.
