How to Choose the Perfect Business Credit Card for Your Startup
Starting a business is an exciting venture, but it comes with its share of hurdles and headaches. Selecting the perfect business credit card doesn’t have to be one of them. To choose the right credit card for your new business compare credit card offers, examine the fees charged by credit companies, choose a card that is accepted by your vendors, and select a line of credit that expands with the needs of your growing business. Read further to learn more about these important steps, and you will pick a business credit card that helps your startup reach the next level.
Identify and compare fees charge by the business credit cards you are considering. Some of the service charges credit card companies impose are:
- Application fee
- Annual fee
- Membership fee
- Balance transfer fee
- Cash advance fee
- Credit increase fee
Be sure to read the fine print and ask lots of questions as some of these charges may be hidden. Although business credit fees are tax deductible as a business expense, credit card fees can make a dent in your startup capital. Make sure the perks of the credit card offer outweigh any service charges. In addition, inquire about the company’s policy on raising fees; find out how often they raise them and in what way they notify their customers. After you’ve examined the fees charged by the credit card you’re considering, make sure it’s accepted at the places you do business.
Find out where the business credit card you’re contemplating is accepted. As you plan your business, you will determine who your primary suppliers are. You want to choose a card your vendors accept to avoid any future hassle. If a credit card is accepted by your suppliers, next make sure it will supply enough capital for your business to grow.
Make sure the credit limit of the card works for you and determine how often it will grow. Some business credit cards do not have a preset limit which is great for a startup business. This allows the amount that you charge to grow with your new company as you repay the money you’ve borrowed. Conversely, some credit cards have a set monthly limit and predetermined times that they raise credit allowances. Look for a credit limit that meets your current needs and can grow with your business.
The right business credit card can aid a new business, and choosing one may be simpler than you think. Compare credit cards carefully, determine if the fees are acceptable to you and offset by perks that benefit your business, choose a card that your major suppliers accept, and make sure the limits of the credit card meet the needs of your growing business. With these simple tips you’re well on your way to choosing the perfect business credit card to finance your startup.
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