There are many financial tools at a small business’s disposal, but perhaps the most flexible easiest to useis the small business credit card.Choosing the right card is not easy, but with some careful consideration of the important issues, a choice can be made that will benefit your company for years to come.
The thing to consider when you begin looking for a business credit card is what you hope to get from the card.Are you bridging a cash flow gap or merely looking for some flexibility?Do you need the lowest interest rate possible, or are other perks more beneficial to you?
If your credit isn’t great, or you need to fill a cash gap, you may need to pay more attention to interest rate.Of course, no one wants to pay high interest, but with less than stellar credit it is going to be hard to get a low interest rate.If cash gap is the issue then you could find yourself in the position of not being able to cover payments if the rate is too high.
Maybe you can give on the interest a little, but would love awesome benefits such as travel miles or cash back.The better your credit score the more options you are going to have in this area.Shop around and know what is available before making a decision.
Know What You Can Do
Regardless of why you want a business credit card, be certain you know your limits.What is a legitimate amount you can pay off monthly?Are you planning to use the card to finance a big purchase?If so, you could benefit from the added warranty protection, but watch limits and interest rates to be certain you are not paying more than you should in interest, and that you can handle whatever the monthly payment will be. Speaking of limits, what is a reasonable limit for your needs?If you are looking to purchase thousands of dollars’ worth of inventory, then a $500 limit isn’t going to work.
Know What You Can Get
There is no point in wasting time applying for cards you will not be approved for.Know your credit, research the cards you are interested in, and skip those for which you will likely not gain approval.Focus on those cards that offer the interest rates and benefits you are looking for, and that you know you are likely to gain approval for.
Biz2Credit can help you with these financing decisions and more by connecting you with lenders from our extensive network that have the tools you need.With just a few simple clicks we can match you with lenders, saving you time and money.Visit Biz2Credit.com today to find out more and get started.