Today, many credit card issuers offer reward credit cards that are especially designed for business. These cards offer features and services that can be helpful for business owners. Is a reward credit card helpful for business? The answer is yes, as long as the card holder knows how to manage the account.
There are different types of reward programs available to business credit cards. The most popular ones are travel rewards, gas rewards and cash back. If you are an entrepreneur, you want to look for a business reward credit card that complements the needs of your company.
What makes a business reward credit card different from ordinary credit cards with rewards? Consider the following aspects:
Credit line. Generally, business owners are confronted with bigger expenses. If you’re going to use your personal credit card to finance your company, your credit line may not be sufficient. On the other hand, business credit cards offer a higher limit which makes them an ideal choice for business financing.
Quick approval. Will this be your first time to apply for a business credit card? If yes, you’ll glad to know that it is easy to acquire a business reward credit card. However, some issuers may require good personal credit, especially if you own a start-up business.
Account summary reports. Issuers of business credit cards offer quarterly or yearly summary reports of your account so you can review all your previous transactions. These reports can be downloaded from the internet and can be integrated with a business accounting software such as QuickBooks, making it a valuable reference for bookkeeping and accounting. A detailed and accurate report is indispensable when preparing your business tax files.
Credit reporting. To establish and build business credit, your account activities must be reported to a major business credit bureau like Dun & Bradstreet. Take note that a business credit bureau is different from a consumer credit reporting agency. Therefore, it is important to choose a business reward credit card that reports to a business credit bureau. By using your business credit card regularly for payment and by paying off your charges on time, you will be able to build a solid business credit history as well.
Bigger rewards. Business credit cardholders typically spend more than personal cardholders. This is why issuers usually offer bigger rewards to business credit cardholders as they usually use their cards to pay for a large bulk of purchase.
If your business requires you to go on frequent trips to purchase supplies or meet clients, you can certainly save more from your travel expenses if you will use a travel reward credit card for business. Do you use your own delivery trucks to run a company? If yes, consider a gas reward business credit card to cut down your transportation costs and earn incentives as well.
A business credit card with cash back rewards is also a great choice especially if you plan to use your credit card for purchasing stocks on a regular basis. You can even choose a business reward card sponsored by your preferred supplier to get even more points from your spending.