Financial tips and advices

Business and credit card

A new business will have a non-existent credit history and it will also have different needs that established businesses. The business credit card companies know this, and they properly anticipate that new small business owners will be seeking a business credit card sooner than later. This is where the problem comes in - when you want one as soon as possible instead of waiting to properly research and select one. But there is a much better solution to acquiring a credit card for your business.

As you may already know, the Internet is an invaluable source for information. I do not suggest applying for one until your business is registered with the state and federal agencies; however, you can surely pick and choose those that would be right for your business before those papers are registered. Once you have all your paperwork in hand, apply for the business credit card offer that most closely fits your type of business. Sounds easy enough, right?

There are some things to be aware of however. If you are a new business the credit card company will look at your personal credit history first. If you are an established company, the credit issuers will draw upon the credit history of the business entity itself, not your personal credit history. One flaw in your business' credit history could stop the application dead in its tracks.

If you are the only one in your business or company that uses the business credit card then I would recommend a business reward credit card. A business reward card can be difficult, but not impossible, to manage when you have several cards floating around among different employees. Employees holding cards might want the reward points for their own personal use and might not be willing to use the card as often as you'd like them to. This makes it harder to claim who gets what from the incentives. Do you separate out the reward points or will you use the points yourself, and if so, will others feel bad about you getting the rewards? Of course, you will not have to deal with this issue if it is only you using the card.

Business cards for corparations and small business

Business credit cards come in a variety of forms, which can seem a little overwhelming to someone that doesn't know the difference between the different types of cards. When it comes to business credit cards, the largest percentage of the market is small business owners. In fact, small businesses are the driving force behind the American economy and create the most new jobs every year. Therefore, credit card companies have developed business credit cards with the small business in mind, but there are some differences between business credit cards for small businesses as compared to those for corporations.

Where You Find It

One major difference between corporate credit cards and small business credit cards is how you found out about it in the first place. For the most part, small business credit cards are those that you see advertised on the Internet and for which you might receive a pre-approval invitation. Corporate credit cards are not advertised in the mass media because they are set up differently, operate differently, and target a different group of people.