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Federal Insurance Federation's Blog
Take precaution when choosing a credit card for your business!
2/9/2012 11:19:08 AM
Are you about to launch a small business in Frederick, Maryland? You will of course be talking to experts about financial arrangements for your business, including Frederick business insurance, bank accounts, and business credit cards.
Small business owners often find it convenient to use a credit card for some business transactions. What should you look for in a business credit card?
• The interest rate charged is important. Some financial institutions offer low introductory interest rates; check to be sure that the attractive introductory rate does not increase to a much higher rate after a few months.
• Reward programs are only useful if your business would benefit from them. Don’t be tempted by a credit card that offers generous rewards that you are unlikely to want.
• Be sure that you know all of the ongoing fees associated with each credit card, including yearly membership fees, monthly account maintenance fees, and charges for enrolling in rewards programs.
• Make sure that the card you use is acceptable to a wide range of vendors. Choosing a credit card that is not universally acceptable restricts your access to credit.
• Choose a card that provides itemized monthly statements if you need to track individual employees’ credit card spending. Some credit card providers send a generalized bill rather than an itemized statement.
There are a number of advantages of credit cards for the owner of a small business. Just as you check out your options before opening a business bank account or purchasing Frederick business insurance, be sure to investigate all alternatives before choosing a business credit card!
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Small business owners often find it convenient to use a credit card for some business transactions. What should you look for in a business credit card?
• The interest rate charged is important. Some financial institutions offer low introductory interest rates; check to be sure that the attractive introductory rate does not increase to a much higher rate after a few months.
• Reward programs are only useful if your business would benefit from them. Don’t be tempted by a credit card that offers generous rewards that you are unlikely to want.
• Be sure that you know all of the ongoing fees associated with each credit card, including yearly membership fees, monthly account maintenance fees, and charges for enrolling in rewards programs.
• Make sure that the card you use is acceptable to a wide range of vendors. Choosing a credit card that is not universally acceptable restricts your access to credit.
• Choose a card that provides itemized monthly statements if you need to track individual employees’ credit card spending. Some credit card providers send a generalized bill rather than an itemized statement.
There are a number of advantages of credit cards for the owner of a small business. Just as you check out your options before opening a business bank account or purchasing Frederick business insurance, be sure to investigate all alternatives before choosing a business credit card!
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