Are you considering a credit card for your small business? Business credit cards are cards that are given to a small business rather than an individual. They have a different set of criteria and standards compared to personal credit cards and for this reason and others that instant approval credit cards are more easily obtained for the individual. At the very least, during the online application process, an acoountant’s details will be required and verified and therefore the application will be held in pending until it can be assessed.
Credit cards for small business are credit cards that are given in the name of a business rather than in the name of an individual, however sometimes in the name of the small business principal. The liability falls on the business to settle rather than the business owner. Of course, small business credit cards are like all credit cards and need to be used carefully and within the financial constraints of the business itself. In fact, a bad credit rating for a small business credit card can have serious consequences and misuse of the card may result in the name principle being held liable.
Small business credit cards are considered to be a “growing industry” in the world of finance with an estimated two-thirds of businesses now having a credit card in the business name.
It has been suggested that what is making the small business credit card increasingly attractive aare the associated “rewards” and benefits that are granted with use of these credit cards.
Unfortunately business credit cards for small business are still relatively expensive compared to other forms of credit and indeed compared to some of the low interest rate credit cards available to individuals, so if one was considering a small business credit card for the rewards and benefits, careful considerations should be made.
Small business credit cards also tend to be expensive as they are unsecured and very flexible. The unsecured nature of the debt means that the credit card lender is taking on a risk as they have no security if the debt is left unpaid, if the business goes bust for example. The flexibility of credit card debt also adds to costs.
Although a credit card for small business is likely to be approved and the rewards and benefits on offer may be tempting, as with all credit cards, a decision should only be made after careful consideration of all products available.