Business Credit Cards 101

Credit Cards

Credit Cards 1

A business credit card is a form of credit card that allows you to draw a line of credit. You can use these cards to make purchases for your business or to earn cash rewards. Some business credit cards offer 0% introductory APR periods for new purchases. You can also make purchases with a personal guarantee.

Business credit cards allow you to draw a line of credit

When you have a business, a line of credit can be a very useful way to finance ongoing expenses. There are several sources of business credit lines, but banks are usually the most stringent and require more documentation and a higher credit score. However, these sources may offer more favorable terms and lower interest rates. Your current business bank is a good place to start your search for a line of credit.

Unlike a personal credit card you would not be able to use on a business like Southfield, MI personal injury law firm, a business credit card offers a higher credit limit and can be secured by collateral. In addition, you will have access to actual cash in your bank account when you draw on the credit line. The downside of business credit cards is that they may have higher APRs and require more paperwork. On the other hand, a business credit card will give you the benefit of earning rewards for your spending, typically related to business expenses. Some cards may even offer 0% interest promotions.

They offer 0% APR periods on new purchases

There are many business credit cards that offer 0% APR periods on new purchases. The best ones offer periods that last up to 12 months. However, most of them do not offer 0% APR on balance transfers. A few exceptions to this rule include the U.S. Bank Business Platinum Card and the Triple Cash Rewards Visa Business Card.

Bank of America has two credit cards that offer 0% introductory APR periods. One is the Business Advantage Cash Rewards Mastercard, which comes with a nine-month intro period. It also offers a tiered cash back rewards program and has no annual fee.

They offer cash rewards

There are many different business credit cards available, and many of them offer cash rewards. Some give additional points on specific categories of spending, while others offer flat rate rewards that are the same regardless of the category. Cash back business credit cards can be a great way to save money on everyday purchases, and they can help you get started in your side hustle.

Some business credit cards offer additional perks, such as travel benefits and complimentary insurance coverage. Many offer signup bonuses of $500 or more. These bonuses are meant to encourage you to use your card to make purchases, and often require that you use the card at partner merchants. Others allow you to use your rewards as cash back, which can be a huge benefit to your business. When choosing the right business credit card, make sure you look at the cash back rates and annual fees.

They allow you to make purchases with a personal guarantee

Almost every bank requires a personal guarantee when approving a business credit card application. While this is unlikely for most small businesses, some banks may be willing to waive the personal guarantee requirement if the business has a history of steady revenue. These business credit cards, however, are much more flexible in terms of spending flexibility.

A business credit card without a personal guarantee is an option that gives you a large line of credit and perks from stores. You can find cards that offer a 0% interest rate and no annual fee.