As you start a business, you'll be paying out money left and right for
various fees and supplies needed to get things going. If you're expanding
your business, you'll most likely be in the same situation. One of the
best ways to handle expenses for your business, whether they are start up
costs or ongoing incidentals that occur, is to obtain a business credit
card. With a business credit card, you'll have an organized reporting of
expenses in addition to a quick and easy way to pay for your purchases.

Choosing the best business credit card takes a little more research than
finding one for your personal use, but the time spent educating yourself
on credit limits, interest rates and repayment options will pay off in the
long run.

Corporate Credit Card or Business Credit Card?

A corporate credit card has no interest rate, but it does require either a
monthly or annual fee to keep the card. It's a good idea to find a
corporate charge card that offers a single bill for all the charge cards
on the account, as this will save you time and expense of writing multiple
checks to pay for the charges. Just be sure that the employees who have
access to the cards are using them for business purposes only- and if
there is any question about the honesty of your employees, you may want to
get itemized listings for each card so you can track each person's usage
on a monthly basis.

A business credit card is not all that different from a personal credit
card. Business credit cards generally have a credit limit, and minimum
monthly payments to pay. When lenders are deciding whether or not to
extend a business credit to a company, they will look at the business
owner's credit as well as anyone else's credit who will have permission to
use the account.

Evaluating Interest Rates

If you decide to go with a business credit card over a corporate card,
you'll want to pay close attention to the interest rates of any cards you
are considering. While promotional rates that scream 0% APR sound
wonderful, don't forget to check into what that rate will change to once
the promotional period has ended. A 0% interest for six months that later
changes to 29% is not as good as a card that offers an always low interest
rate of 8% or so. Your other possibility is to obtain a card with an
introductory offer, and before the time period ends, transfer your balance
to a new credit card with a 0% introductory offer. It all depends on
whether or not you want to be bothered with the constant applying and
transferring of funds.

If you've decided to use a corporate credit card, look for a card with a
monthly or annual fee that is reasonable in comparison to the amount of
spending you believe you will be doing with the card. Also find out what
services the card includes, sometimes paying a higher annual fee is worth
the money in return for having discounts at office supply stores or
airlines.

Consider Rewards Programs

Many business credit cards (and corporate cards for that matter), offer
rewards programs for using their card. Do you do alot of traveling for
your business? It would make sense for you to look into credit cards that
offer rewards in the form of airline miles, discounted airfare, travel
accident insurance, or car rentals. Do you tend to purchase supplies from
a specific vendor on a regular basis? There are rewards programs that earn
you points or cash back for purchases made at specific locations, and this
makes sense for businesses who make repeat purchases from that location.
Why not be rewarded for spending you have to do anyway?

Pick a Card, NOT Any Card

Choosing a credit card for business use is not a decision to take lightly,
as the card will be a major factor in the amount of money you spend for
your purchases, the ease in which you can track your business expenses,
and the potential for earning free items or cash back.