What Options do I have for Small Business Credit Cards?

There are many options that exist when it comes to small business credit cards. You should just be selective about choosing the right option for your business. Just like a consumer credit card, small business credit cards are looking to provide added benefits to your business. These benefits can include cash back, rewards, and travel perks.

Questions to ask yourself before deciding on a Small Business Credit Card:

• Why am I applying for a credit card?

1. Is it because I want access to financing quickly? If this is the case there are several other options that you should consider before landing on a credit card. These options include:
   1. A merchant cash advance which allows you to apply and get approved for financing quickly. Often times you can have the cash in hand in just three short days and the application process is just as, if not simpler than a credit card application.
   2. A business line of credit through a bank is another option to consider if your business meets the requirements by the financial institution. A line of credit allows you to draw on the funding whenever your business needs it and then pay it back over time.
2. What type of value am I looking to get out of the card?
   1. With so many different types of rewards cards out there, it can be an overwhelming decision to decide on just one. But ultimately you have to do what is right for your business.
   2. There are also cash back cards that allow you to earn cashback on all of your purchases. Some businesses find this valuable because they feel like they are getting an instant discount with each purpose.

• Small business credit cards often come with large signing bonus opportunities if you spend a certain amount in the first few months. Each provider is different but these can be great for companies to take advantage.

1. What type of credit does your business already have?
   1. Small business credit cards are a great way to establish credit for your individual business. But keep in mind, they operate the same way as a personal credit card and if you don’t pay back the balance off, you can hurt your score.

Different small business credit cards out there

• If you are looking for looking for cashback the Chase Ink Cash Business Credit is a great option.
  • This card offers 5% cash back on all typical business purchases. These include things like office supplies and internet subscriptions.
  • Not only that but if your business spends a lot of time on the road or dining with clients, the card offers 2% cash back at gas stations and restaurants.
• If you are looking for a great reward card, the Ink Plus Business Credit Card by Chase should be in the running.
  • This card has a great signing bonus if you spend more than $5,000 in the first three months. If you can do, you will be credited 60,000 bonus points.
  • You will also earn 5 points for every dollar spent on typical business purchases like your business’ cell phones and office supplies.
  • Another great perk of this card is that you can set spending limits for your employees so they can’t use your entire business’ line of credit.
  • You can also order additional cards as your business starts to grow for no additional cost!
• When it comes to travel you should consider these:
  • Capital One Spark Miles for Business is great for frequent air travelers to rack up flight discounts and even free flights.
  • The Business Platinum Card from American Express is a great card if you like to spoil your employees with exclusive access to different airport lounges. But be mindful, there is a pricey $450 annual fee associated with this card.

Ready To Get Started?

If you are thinking about opening up small business credit cards for your business and employees make sure you are aware of the risks that can be related to giving out these cards.  A few risks include:

• Rogue employees using the cards for non-business purposes.
• Employees making non-approved business purchases.
• Not being able to pay back the monthly bill each month and damaging your business’ credit score.
• Employees who cash in on the business’ miles and use their personal miles and hotel accounts when booking with the corporate card.

Before applying for small business credit cards, make sure you weigh the pros and cons and consider all of your options. Two of the earlier stated options that will also give you access to cash fast are a business line of credit or a merchant cash advance.

If you would like to learn more about how a merchant cash advance can equip you with the cash you need now, we are here for you!

Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now.