Small Business Credit Cards Market

Small Business Credit Cards Market

Growth Potential

The large number of small business owners that currently do not use a business credit card shows that there is a huge market just waiting to be tapped. Several companies have jumped on the bandwagon to take advantage of these potential customers.

Seizing an Opportunity

A wise credit card company that caters to consumers and corporations should also consider the large number of small business owners that may be tempted into acquiring credit cards if the right perks are offered. The following companies have recognized this growing market and are reaping the rewards for it.

Capital One- just one of several major credit card companies recognizing this prime market. Their advertising and marketing is directed at small business owners that are neglected by corporate credit card companies. They promise to cater to the little guy, and small business owners are flocking to them.

American Express – one of the major credit card companies offering several products for the small business owner, depending on income. Currently they offer four different cards for businesses: Business Gold, Starwood Preferred Guest, Simply Cash and the Plum Card. This company has perfected the art of giving small business owners what they want, while making them feel they belong to an exclusive club at the same time.

Advanta- the perfect starter card for a small business owner. This no-frills business card has a straight forward and easy-to-understand rewards program. They offer 5 percent cash back on most office-related purchases and 1 percent back on all other purchases made with their card. You can manage your account online, and they even offer merchant services so you can accept credit cards at your business.

Discover Business Card – the Discover Card company is also competing for their share of this marketing niche. They offer small business owners a business card with a rewards program based on types of business purchases: 5 percent for office supplies, 2 percent on gas and 1 percent on all other purchases. Other benefits include travel rewards, downloadable statements and customizable employee credit cards.

CitiBusiness Cards – Citi card offers five different cards to suite every business owner. Choose based on desired rewards such as ThankYou points, American Airline miles, unlimited companion travel with ThankYou points, a balance transfer card and the Professional Cash Card.

Chase Business Card- Chase offers four categories of business cards based on rewards such as gas, hotels, airlines and retail purchases. Their current card offerings include:

• Business Rebate Card
• Chase Freedom
• United Mileage Plus
• Marriott Rewards
• GM Business Card
• Amazon.com
• Borders, Priority Club
• Southwest Airlines Rapid Rewards

Chase offers the most diverse collection of business credit cards with a rewards program to fit just about any small business owner's needs.

First Equity Visa Card - an invitation-only credit card that takes personal and business financial information into consideration when reviewing a credit application.

Why Apply?

Many small business owners hesitate to get into debt with a new business. After all, most small businesses get their start from cash advances on consumer credit cards and personal savings. Why would a small business owner want to open a business account with a credit card company?

There are several good reasons to open a credit card account:

• Build good credit for your business
• Ease of managing expenditures for your business
• Employees can make purchases for you with employee cards that you control
• Makes managing a growing business’s cash flow easier
• Rewards programs may provide an incentive that would make acquiring a card worthwhile

What Does The Future Hold?

The small business credit cards market is still in the fledgling stage. Many large credit card companies are waiting in the wings to watch the growth of this market segment. If the market continues to grow, we can expect other credit card companies known for their large corporate accounts to ease into this market as well.