Business Credit Cards
Find out about how business credit cards work and why choosing the right one for your business is important.
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Quickly and easily find the perfect credit card for your business
|Provider||Interest Rate||Monthly Fee||More Info|
|Variable||Free||Cashplus Card review|
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|0.79% - 4.9%||Free||Capital on Tap review|
|Terms and conditions apply.|
A credit card specifically for business
If you run a small or medium-sized business, the chances are that you’ll want a credit card that supports your ambitions. Although business credit cards are similar to personal ones, they are often tailored specifically to companies and bring a host of benefits.
What is a business credit card?
When you apply for a business credit card, it will be in the name of the company rather than an individual. It then allows you to make purchases and complete transactions in the name of your business. Much like a regular credit card, you will have a credit limit and will likely be charged interest on your balance at some point. There are usually a number of perks that come with such a card, including things like insurance deals, cashback, and preferential rates.
How do business credit cards work?
There are several factors to take into account when applying for a business credit card. On a basic level, they work the same as a regular credit card. You will have a credit limit, which is the maximum you can spend on the card. You’ll also have a minimum monthly repayment, which is usually a percentage of your overall balance. Paying back enough each month may mean you pay little or no interest.
Some providers will give you a different interest rate depending on the type of transactions you make with the card. It’s therefore always a good idea to check with the bank or company you’re thinking of applying to in order to clarify this.
Do I need a business credit card?
Business credit cards are suitable for business of all sizes. Whether you’re a sole trader, startup, or larger company, you can enjoy the benefits of these products. However, you may find that certain providers have financial requirements for some of their cards, and you may get a better deal depending on the size of your company.
If you make transactions through your business, then the protection and benefits of this type of product can be a huge boost. Similarly, if you’re going to be making large purchases and don’t have the cash reserves, they can be an excellent way of managing your cash flow.
How do I choose the right business credit card?
There are many factors involved in choosing any financial product, and business credit cards are no exception. For example, there are some costs associated with them, such as annual fees and interest rates. You’ll need to take these into account. Additionally, some providers charge for late payments, cash withdrawals, and exceeding your credit limit.
When choosing the right business card, consider what you’ll mainly be using it for and the scope of your business to meet the potential payments. Research some of the providers and make a shortlist of the ones that are important to you before making a decision. As ever, you can rely on Numo to give you reliable and impartial reviews on business cards and other financial products.