Is a good charge card for my business?

Is a good charge card for my business? -

Running a business is difficult. It requires not only a lot of time and effort, but you also have a seemingly unlimited amount of funds. Whether your business is a transaction of 10 or of an establishment of 100 people, you can benefit from opting for a corporate credit card. While we talked about the benefits of using a company credit card before we ever dug in the way companies work credit cards. Here's everything you need to know.

What is a business credit card?

Although they can be used as a credit card (the merchant does not know the difference), recharge cards actually work quite different from that of credit cards. Payment cards offer more flexibility to the cardholder, as they have no preset spending limits or purchase APRs, but these benefits come with a major drawback - you have to pay the balance in full each month. It may be helpful to think of a credit card as a loan of 30 days must be paid in full after the month is over - a tool that can be essential for many small businesses. Although some credit cards as the Plum Card from American Express OPEN (a NextAdvisor seller) allow you to pay your bill within 60 days without interest, most credit cards charge a pretty heavy interest costs (usually about 4%) if you 're late on full payment. Something to keep in mind is that even if you have no preset spending limit, that does not mean you have no limit. Instead, you'll have the buying power that can adjust with your card usage, payment history and your credit report.

How can I increase my purchasing power?

Given that your purchasing power is determined by your card usage, payment history and your credit report, there are three ways for you to increase your purchasing power with a credit card. The first is to use the card frequently, as for daily expenses, as it will show the card issuer that not only are you able to keep up with your credit card purchases, but it will show the transmitter the map that you want to create a long-term relationship with her. Then you'll want to make sure that you pay in full and on time each month. This will help you avoid late fees and establish a positive payment history with your card issuer, which will show them that you are worth increasing the purchasing power. Finally, you'll want to maintain a positive credit history. This means keeping your credit score up, pay all your bills - not just your credit card -. On time, managing your debt and maintaining a strong credit types of mixture (eg, having a credit card, credit card and mortgage)

Why consider using a credit card?

Although the payment of the balance in full each month may seem a bit overwhelming for some business owners, credit cards offer major advantages that make them interesting. For starters, business owners will have the funds available to pay for business expenses last minute as raw materials, travel expenses, inventory and advertising. This can be useful when you need to make an unplanned purchase. For example, if you use an e-commerce site and your server accident, you will have the funds you need for backup servers and business back to normal. Then some credit cards (including retail those of us below) provides benefits to cardholders. For example, purchases made with the Platinum Business Card from American Express OPEN you earn points that you can redeem for travel, entertainment, dining or merchandise, while Plum Card from American Express OPEN gives you a discount 1.5% when you pay at the beginning (with no ceiling on what you can earn back). Benefits Finally, some credit cards have added membership as travel accident insurance can cover you if your travel plans go awry loss of rent and car and damage insurance, among others.

Which load the maps are best for business?

Although apparently the options are endless when it comes to credit cards, the pickings are somewhat slimmer for credit cards. Even so, there are a number of major credit cards as business owners can enjoy. Three of these cards.

The Plum Card from American Express OPEN

As for loading cards, you can not go wrong with the card Plum of American Express OPEN. For starters, this card gives you a discount of 1.5% if you pay the balance before, and there is no cap on how much you can earn. Then the Plum Card from American Express OPEN allows you to take up to 60 days to pay interest free as long as you pay the minimum due - a unique advantage of this card. And when you use your credit responsibly card and often you can unlock new opportunities with a spending limit that can grow with your business. Although the card has an annual fee of $ 250, he waived for the first year and no annual fee for additional employees cards. Rounding out the card are no foreign transaction fees and the ability to receive your bill at the beginning, middle or end of the month.

The Business Platinum Card from American Express OPEN

Another great option for payment cards is the Platinum Business Card from American Express OPEN . This card offers significant rewards and a handful of spectacular travel services. In terms of rewards, you earn 40,000 Membership Rewards points when you spend $ 5,000 of purchases on the card in your first month of membership card. In addition, you will earn 2 points per $ 1 spent booking your travel with American Express and 1 point per $ 1 spent on all eligible purchases. Your points can be redeemed for travel, entertainment, dining or merchandise. In terms of travel benefits, you will have access to the access program at the airport lounge, which offers free access to over 700 airport lounges around the world, and the potential to receive up $ 200 / year on account credits when incidentals, such as checked bags and in-flight refreshments are brought to your card. And when you use your membership rewards to pay for all or part of a flight with an airline company of qualification, you can get 30% of return points. Something that can be a deal-breaker for some is the annual fee of $ 450, but if you travel frequently and use your card for purchases business daily, the heavy tax may be worth it.

Business Green Rewards Card from American Express OPEN

To complement the above options for business credit cards is the Business Green Rewards Card from American Express OPEN. This card earns you some great rewards and has a reasonable annual fee of $ 95, which is waived for the first year. To begin, you will earn 5,000 Membership Rewards points after your first purchase with the card. Then you will earn 2 points for every $ 1 spent booking your travel with American Express and 1 point for every $ 1 spent on all eligible purchases. You can redeem your points against gift cards, merchandise, entertainment and more. Rounding out the card is American Express benefits like car rental loss and damage insurance, purchase protection and extended warranty.

Want to know more about these credit cards? Visit our company credit card reviews to see how they compare to some of the top business credit cards.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.