A Beginner’s Guide To Finding The Right Business Credit Card

When managing an enterprise, cash flow is the name of the game, as it helps to pay salaries on time, keep debtors happy, and cover fixed costs.

However, if you’re struggling to meet your day-to-day running costs, then a sound business credit card will enable you to keep things ticking over until you improve your financial situation.

Therefore, getting a business credit card that offers excellent interest rates with appropriate terms and conditions is essential. It also means reading the small print carefully to ensure that you don’t get hooked into an endless spiral of debt.

To help you understand what to look for in a business credit card, CAP3 has put together a Beginner’s Guide to finding the right business credit card. Through this guide, you will feel confident that your company can survive through unprecedented times.

Getting Started

List your expenses: Create a list of the most common types of costs that you incur every month, including the vendors or companies from which you make purchases.

Understand your expenses: By analyzing the list of your most common vendors (that would accept credit cards as a payment method), research to see if there are specific cards that offer rewards based on the type of vendors you need to pay.

For example, if you have a company that does a significant amount of shipping with FedEx, you may want to look for a card that gives a substantial cashback reward on FedEx expenditure. Or perhaps you have a company that makes a lot of purchases on Amazon. If that is the case, you may want to research the Amazon Prime American Express card to see if that could be a good fit. Some organizations require endless travel. If it applies to you, then an airline-specific credit card like the American Airlines Citi Card may be best.

Next Steps

Maintain a consistent approach: Create a credit card use policy for your business, especially if there will be multiple cardholders. Also, determine your philosophy regarding carrying a balance on business credit cards. If you choose that you never intend to carry a balance forward, specific cards provide great rewards for paying it off each month before the due date, like the American Express Plum card.

Make a calculated decision: Decide what type of credit card would be most helpful in your business regarding reward, features, and benefits.

Work with a professional: A professional will have the necessary experience and insight to save you time and money when selecting the right resources for your business.

Advice From The Pros

Conduct research: Snake oil salesman selling below-par credit cards are a dime a dozen. Therefore, keep in mind that some cards have higher costs than others due to either interest or annual fees. However, there are also low-cost ones out there, so be sure to weigh all of your options.

At CAP3, our goal is to exceed your expectations. As the go-to experts in Wilmington, NC, you can feel confident about building your business with us. We specialize in business intelligence, accounting reports, cash management, small business accounting, and bookkeeping. We also offer our clients strategic virtual conversations with a CFO.

We serve clients virtually all over the United States. Visit our website to learn more or contact CAP3 today.