Which Credit Card is Right for Your Business?

Running a business requires you to spend a lot for company expenses. Using your personal credit card for business expenses is not a good idea always. As a small business owner you should provide company cards to your employees to make required business purchases. Using cards that offer rewards like points and cash back can be very beneficial, especially when you have employees traveling frequently on business trips.

From business cards to purchasing cards – there are many options today. So, how do you decide which card is right for you? Although all are considered as commercial cards, there are significant differences to each. Choosing the right business credit card can be an indispensable resource for business owners. Just have a quick glance at some business cards:

Small business credit cards

Small business cards allow employees to make business-related purchases, while allowing employers to oversee spending by setting limits and purchasing restrictions on the accounts. These cards are suitable for businesses that work with a basic expense reporting system, but they just need to manage their expenses online and in real-time. Small business organizations and associations can benefit from this type of credit card.

Purchasing cards

Purchasing cards are different from that of small business credit cards and are ideal for businesses that require more advanced expense reporting functionality. School systems, construction companies and municipalities are examples of businesses that use this type of system. This card gives you the granular details regarding the transactions and business owners can see exact details of all transactions that happened. Additionally, companies can set specific requirements or purchasing restrictions for the various cards. Purchasing cards allow employees to create an online expense report with receipt attachment capabilities. Also, you can integrate the transaction information with the business accounting system.

Besides knowing which card type best suits you, business owners should also know about interest rates and the repayment period. It is better to know what fees are associated with the card programs such as annual card fee or online access fee. With numerous card options, one can easily choose a card that best suits their businesses.