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Compare Business Credit Cards With Money Pug
The Pros of Business Credit Cards
- A business credit card can help you to keep your business spending and personal spending separate, which makes things much easier when it comes to doing your accounts.
- If you spend a lot each month on a business credit card, you may benefit from rewards points or cashback that could come in handy.
- Business cards generally offer an interest free period on purchases, usually of up to to months. This can be helpful to small businesses in managing cash flow.
- If you are just starting out as a business, an additional introductory offer of 0% period on purchases, available on some business credit card deals, could give you some breathing room while you get up and running. But do be careful not to get into lots of debt that you cannot pay off later.
The Cons of Business Credit Cards
- Be warned, many business credit cards charge an annual fee, even when they are not offering anything much over and above what you can get on a free personal credit card deal.
- Some businesses (especially those that have not had time to build up a credit rating) may find it difficult to be accepted for a card in the first place.
What Should I Consider When Choosing a Business Credit Card?
- Check the amount borrowed and term to make sure you are happy with the numbers.
- Don’t pay an annual fee for benefits that you don’t need/ won’t use.
- Check that you are not getting a worse deal due to extras that you don’t want/ require.
- Look at interest payments and calculate whether these outweigh any potential rewards if you do not pay off the balance in full each month.
- Consider the risk involved if you cannot make payments. Don’t overstretch and borrow more than you can afford, or you could end up with a black mark on your credit report.
- Be aware that the representative APR is only a guideline and the deal you are offered may vary depending on your credit rating and individual circumstances.
- Consider whether you will be able to pay off during an interest free period, before you start getting charged interest.
What Are the Alternatives To A Business Credit Card?
A Business Loan
A business loan could be a good way to borrow for your business. A fixed rate deal will mean that you can budget easily and won’t get nasty surprises. You can get unsecured loans, or secured loans if you have a property of business holding to act as security should you wish to borrow a larger sum.
Overdrafts on a Business Account
Another option to ease cash flow issues could be to arrange a sensible overdraft on a business bank account. Using an overdraft responsibly could be a good way to give yourself a little extra buffer without taking on a lot of extra debt.
Rather than spending on a credit card, you may be able to crowdfund money to help grow your business or to undertake certain projects. Online platforms allow companies to access finance offered by individuals and professional investors. This is likely to involve giving a portion of your company away to investors, but could be one possible way to leverage a extra cash when it is needed.
Of course, you could also raise money for your company through traditional investment channels. Again, this usually involves giving away portions of your business and being help accountable to those who own shares.
What Do I Need To Compare Business Credit Cards With Money Pug?
Business Credit Cards FAQs
- Generally speaking, you will not be able to get a business credit card unless your business has a good credit history. This means that getting a business credit card can sometimes be a challenge for businesses that have not been running for long, and practically impossible for start ups. If, however, you have an existing company with a good credit rating, as well as a good credit rating yourself, then a business credit card could be an option for you.
Whether you can get a credit card is one thing to consider. But you should also think about whether it is a good idea for you to get one. A business credit card may be just the ticket if you own a business, or regularly use plastic to pay expenses. But there can be down sides to a credit card too, so it is important to think through all the details carefully before you make your decision on whether a business credit card is the right option for you.