Small Business Starter Credit Cards

Credit card issuers offer a wide variety of features and terms on their small business starter credit cards. Selecting the right card could save your business a lot of money – or, it could cause needless expense. You need to select a card with the right combination of interest rates, features and terms for your business.

Every small business should have a credit card account established to use for business expenses. Small business starter credit cards are particularly helpful for new businesses because they can provide:

• Startup capital - Many small businesses are started with cash from credit card cash advances and purchases from a credit card.
• Cash flow - Small businesses can enjoy the additional cash available when some purchases of needed supplies are made with the credit card as well as the emergency cash available from cash advances.
• Rebates and discounts - Business expenses can be minimized on frequently purchased items such as gas, airline travel and office supplies.
• Recordkeeping - Expenditures are detailed in statements and online reports for bookkeeping and income tax purposes.

There are two types of credit cards available to the small business owner:

• General credit card that offers the same features to all cardholders – consumers and small business owners. The downside of this card is that it usually does not offer business-oriented rebates on expenses such as gas or office supplies. A general card can be obtained as a secured credit card.
  • This type of card is issued based on the personal credit history of the consumer applying for the credit card, not the credit history of the business. This is particularly helpful for start-ups that have not yet built a credit history. The name of the business is placed on the card along with the name of the consumer.
  • Commonly used by sole proprietors

• A business credit card that includes specialized benefits designed to meet the needs of the business.
  • This card is issued based on the company's credit report score and ability to repay the expense charged on the credit card.
  • It can offer points for hotel and airline travel, providing money saving benefits for traveling business people.
  • This type of card often imparts rebates for business expenses such as gas, travel and office supplies. This benefit helps with money management for start-ups and business people who don't travel overnight.

When selecting a business credit card you need to consider:

• Primary use of the card – Will the card be used primarily for travel, expenses and gas? Or, will the card also be used for potential cash flow needs?
• Value of rebates and rewards – Is the value of those savings worth any extra interest rate or fees that might be charged on the card?
• Projected usage per month – If you plan to use the card frequently, consider a card that provides cash rewards for purchases. If you plan to only use the card to purchase gas, look for a card with a higher rebate for gas purchases.
• Interest rate – A card charging you 0% APR for purchases may fund your business expenses interest-free for 12 months or longer. Be sure to read the terms and conditions of the card to determine what the rate could become after the end of the 0% APR promotion.
• Need for employee cards – Do you want to issue cards to your employees? If so, look for a card with no fee for additional cards.

Sole proprietors with good personal credit histories should contact the issuers of their personal credit cards to determine if they are willing to open a second credit card account in the name of the business.

Most of the larger credit card issuers including Chase, Citibank and American Express offer business credit cards with promotional interest rates, rebates and reward programs. Look for the features that best meet the needs of your individual business.

It is important for a small business to continually review the credit card offers available because:

• Interest rates, card terms as well as terms of rebate and return programs change frequently
• An improved credit rating of a business can improve the rates and terms offered to a potential cardholder

• For businesses that spend a lot on airline travel and hotels:
  • CitiBusiness/AAdvantage MasterCard
    • Reward program earning one mile for every dollar spent
    • 25,000 bonus miles after the first $750 in purchases within four months
    • Annual fee waived in first year

• For businesses that spend a lot on gas, office supplies and cell phones:
  • Advanta Platinum BusinessCard with Rewards
    • 5% rebate on gas, computers and computer supplies, utilities, telecommunications and online ad services
    • 1% rebate on all other purchases
    • Cash rewards issued based on amount of purchases
    • Discounts on products and services at participating merchants
    • Online statements and management reports are compatible with Quicken and Microsoft Money software
    • Low interest rate for purchases and cash advances
    • 0% APR on balance transfers for 16 months
    • No annual fee

• For small businesses and home office entrepreneurs who want to save money on everyday expenses:
  • Chase Freedom for Business Visa Signature Card
    • Can switch from cash rebates to point rewards
    • 3% rebate on the business's top three credit card spending categories
    • 1% rebate on all other purchases
    • 0% APR on purchases and balance transfers for up to 12 months
    • No annual fee

• For business owners who want to turn their business expenses into rewards for travel, electronics and gift cards:
  • Citi Professional MasterCard with ThankYou Network
    • Reward program offers three points for every dollar spent at certain office supply merchants and one point per dollar on all other purchases.
    • 10,000 bonus points after the first $100 in purchases
    • 0% APR on balance transfers for 12 months
    • No annual fee

• How Do Debt Consolidation Services Work
• Is Debt Consolidation a Good Idea
• How Can I Improve My Credit Score Fast
• How Does Debt Consolidation Work
• What is a Good Credit Score

• American Express Black Card
• What Is APR
• Sears Credit Card
• Do It Yourself Card Credit Debt Settlement
• Credit Card Generator

• Secured Small Business Credit Cards
• Your Business and Credit Cards
• Accept Credit Cards for Small Business
• Small Business Credit Cards Market
• Category:Types of Credit Cards