Advantages of Business Credit Cards

. Just because you can claim interest charges as a tax deduction, it doesn’t mean you can’t still look for the business credit card with the best interest rate. Typically the interest rate on a standard business credit card is 13.45% and on a business credit card with a rewards program it is 15.27% on average. Therefore, look for the lowest business credit card interest rate, but not to the exclusion of all other features.

Payment capabilities. Here you need to compare how you can use your credit card, and how others in your business can use the account too. For example, are you looking at an American Express or Diners Club card, as these are not as widely accepted as a Visa or MasterCard as their merchant fees are higher. Many credit card providers therefore offer companion cards where you can use your American Express business credit card to collect more points, but where American Express is not accepted, you can use a companion Visa or MasterCard, linked to the same account. Also look at who can use the business credit card, and the costs of additional card holders. You may even want to consider features which allow you to set different limits of different additional cards, for staff in your business with differing levels of responsibility and trust.

Rewards programs and discounts. Business credit cards are a competitive market and each provider wants to attract your business. Therefore, many business credit cards also offer attractive rewards programs or discount offers, and all you have to do is choose the card with the benefits which would best suit your business. For example, do you want the business credit card which offers you discounts on office supplies and computer software, or the one which includes discounted travel offers? Or would you rather collect points on your business credit card as incentives for staff bonuses or customer giveaways?

A business credit card can mean a lot more to you and your company than a suave way to pay for a corporate lunch. If you can manage your business credit responsibly you can gain control over your business finances, reduce your business’ tax obligations and keep track of business and staff spending, all with one card.

Alban is a personal writer specialising in credit card comparison. He helps people to compare credit cards online.

Do you use a business credit card? Would you recommend it to others, especially to small business owners?

( Photo courtesy of seishin17 )