Most companies need to have a business credit card. This offers a convenient way of paying for everyday business expenses. It can also help with accounting and let your company accumulate rewards, such as cashback. But how do you find the top business credit cards? Let’s look into some important considerations.
Fees
One of the first things to look at when choosing among the top business credit cards is the fees that you will pay. Most will have an annual fee, although not all will.
Some business cards may have higher annual fees but have benefits, such as a cashback program. This will require you to weigh the pros and the cons.
Interest Rates
As with personal credit cards, the top business credit cards have lower interest rates. However, there is only so low that the rate will go, and this will likely depend on your business’ finances and your personal credit. That said, it doesn’t hurt to compare the interest rates to see if one card is better than another.
Don’t ignore the interest rate because you plan on always paying the business credit card on time. You never know when something unexpected will happen.
Other Fees
While the annual fee and interest rate are the main fees you will pay with a credit card, some other charges may come up. For example, if your business ever makes international purchases, pay attention to international and currency conversion fees. You should also look at fees for balance transfers, cash advances, and late payments.
Cashback
One of the most popular rewards offered by top business credit cards is cashback. Decide if this is an important reward for you and if it is worth paying an annual fee.
To make that decision, you have to pay attention to the rules for the cashback offer. For example, pay attention to if the cashback is just limited to a certain type of expense, such as office supplies or advertising. You also need to check whether there is a maximum cashback reward.
Credit Limit
You will also want to pay attention to the credit limit on your card. Essentially, you want to make sure that you can use the card for the expenses you plan to use it on. As with the interest rate, this will likely depend on your company’s finances and your personal finances.
Bonus: Non-Financial Considerations
In addition to the above financial considerations, there are a few other things to think about when selecting among the top business credit cards. The most important for most companies will be the other rewards. For example, if you frequently travel for business, you may want a credit card with travel rewards.
Conclusion
When choosing the top business credit card for your company, pay close attention to annual fees and interest rates. You also want to consider other financial elements, such as credit limit, cashback program, and other fees.Â