Advantages of Business Credit Cards

Business Credit Cards are very helpful to those who have a large or small business. We are going to look at a few things with this type of card that could be an advantage. Most companies are accepting credit cards over other payment methods. With a small business you may find that you can’t purchase some things with cheques or that you need to make a purchase over the internet. With business credit cards you are able to make purchases that you can’t make normally.

These cards have changed a lot as well in the use of them. For example it used to be that business credit cards had annual fees from 45 pounds to over a hundred. With these fees you were still paying interest on any balance that you carried over. So the card could be really expensive to have. Now the annual fee has been removed and the interest rate is all that you are charged. For a small business this makes the card look more appealing. A larger business could deal with the fee, but smaller businesses can be harder.

With a business card you are able to separate your expenses out. In other words if you are a small business you may not want to have a separate business account. Home businesses often make this really difficult. So if you have a business card that you charge to for all business expenses you can then pay it out of your pocket, but the details of what you spent are all there for tax time. There is not marrying of the two accounts.

For a larger business as well as smaller businesses there are perks to having the business card. You can earn cash back for purchases, flight miles, or even discounts at specific office supply shops. These perks will change depending on the company. You often get one type of perk for the specific card you have. For example you wouldn’t get flight miles with a cash back card. You may find that travel cards will offer more for the business card. Some business cards offer travel rewards that work for flights, hotels, and car rentals rather than just one travel expense.

With the business cards you still want to use the card wisely. This means if you pay off the balance every month you will not be charged interest. You can also find in this scheme that by paying off the balance you are able to get a longer interest free period. Business cards offer you balance transfers in some cases. So if you have another card you can swap them out. The business card will offer you a tax form at the end as well. This form will offer you a breakdown of expenses you made as well as tell you how much interest you were charged. If charged interest you can write off a portion of that amount. The annual fee is usually not included in that deal though, if there is one.