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Small Business Credit Cards - Are They Customised for Customers?

With all the offers, perks and loyalty reward schemes available for small business holders, choosing the right small business credit card can be a pretty daunting prospect. Before you go whizzing off to online comparison sites there are a couple of things that you might want to consider first.

Cash-back cards are now commonplace; American Express, for example, have unveiled their SimplyCash Business Card, offering cash-back on certain expenses that small businesses commonly incur such as fuel, office supplies and telecom charges. LloydsTSB has a credit card designed specifically for small businesses, offering a facility that sets individual credit limits for each employee issued with a card. Most of these facilities are designed to minimise the potential for overstepping the credit mark and incurring unnecessary penalties - helping the entrepreneur to manage cash-flow to maximum effect.

This is good news for those just starting out, as many ventures rely on credit cards to set the business wheels in motion. In the past, individuals often had no other course of action to pursue, other than to use their own personal credit cards. Not only does the proliferation of cards for small businesses reduce the risk of any negative credit impacting on the director or owner of a small business, but it also makes the practical side far easier to manage; no more sifting through boxes of receipts that could be for business or personal purposes, rather than knowing exactly which is which? Business credit cards can certainly make life a lot easier in that respect.

As an example, I compared the standard against the gold business credit card of a major UK issuer. In the perks department, the standard card gives you the ability to view your transactions and statements online, access to management reports online, travel accident cover, insurance for cardholder misuse, purchase protection, deals with commercial organisations, Chip and PIN and other security features. The gold version had all of these plus enhanced deals, extended warranties on purchases, travel cover and travel insurance. Both cards would incur the same late payment, returned payment and exceeded limit fee, have the same annual interest rate for retail transactions and cash withdrawals and offer a 56 day interest-free credit period. They differed mainly when it came to things like APR and the limit for cash withdrawal. Standard offered a lower interest rate, where gold allowed a higher maximum daily withdrawal limit.

However, as exciting as perks can be, it is best not to get distracted by them and try to remember what the card is for: a convenient way of accessing funds and minimising cash transactions. You're going to need to think about things like interest rates - a major factor when choosing your credit card. Some cards offer 0% interest on purchases for a number of months as an introductory offer, after which point the APR defaults to the issuer's standard rate. Tie in balance transfer deals and you've got a lot of research on your hands!

Finding a credit card for your small business needs needn't be a nightmare, as long as you're prepared to do a little legwork. The range of benefits out there is huge and the competition is increasing as the financial institutions battle for custom. In the end, the benefits of a wisely-used small business credit card are there to be taken advantage of - and the fight isn't limited to the banks; supermarkets and even charities are jumping on the bandwagon and vying for your custom, offering deals on their own products and, in the instance of charity cards, offering donations to charitable organisations as part of certain transactions. Who said that credit cards don't have a conscience?

Article Source: http://www.articlemap.com

If you are looking for additional advice to help you choose, from the multitude of small business credit cards, the exact card which truely matches your corporate requirements, Simon Maxwell will help guide you there. Watch out for future articles from this author.

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