Credit cards have indeed become necessary, not just for businesses but also for individuals. Indeed these plastic money options are easing our burden of carrying cash. It is one way of running one’s business successfully provided one pays bills within the stipulated time. Keeping in mind the size and area of one’s business, there are different kinds of credit cards available for the different requirements. A general study of the market leads to a knowledge of four different types of business credit cards:
- There are exclusively designed corporate credit cardskeeping large businesses in mind. These businesses are the ones with many employees such as corporations, government entities and the like. Free employee credit cards are also issued by many corporate accounts. A great amount of responsibility lies here with the corporation who issue these credit cards. Thus it becomes extremely vital that the corporate houses closely monitor the spending activity of their employees. The office needs to be sure that they do not end up paying for the personal expenses of their employees.
- Available in good number now are cards that meet the specific needs of beneficiaries. These are special interest credit cards. Citing as an instance, we have the likes of CitiBusiness/AAdvantage Platinum Select World MasterCard. These cards are a good choice for business owners as well as their employees who frequently fly with American Airlines. Similarly, we have Chase providing the Ink Plus Business Card which offers five-times points for purchases made at several points for office use.
- One major concern of every businessman is paying bills at the end of a business cycle and for this purpose the best that can be used are charge cards. One caution that the issuer of the card needs to remember is to issue them to business concerns that can not only remember but also afford to pay their bill off each and every month. The payment criteria of charge cards are stricter.
- Often certain businessmen require additional capital but have the inadequate turnover to repay the previous balance. In order to cater to their needs, there are some low-interest credit cards made available.
The next factor that determines your eligibility of getting a credit card is your credit score. A business credit score is different from a personal credit score in many ways and it is absolutely important that the scores set up by the concerned corporate house or business be a good one. Elements such as payment history, public records, business size, etc determine the score. Conduct a thorough study and choose the best credit card for your business.