As a small business owner, every financial decision you make is a big one. Even seemingly minor details can have a major impact on your company now and in the future. So, when it comes to choosing a small business credit card, it’s critical that you take the right steps at the right time.
If you’re in the process of searching for and choosing a small business credit card, here are a handful of steps you can take to make the process as simple and stress-free as possible.
1. Know Your Options
One thing you’ll soon learn is that there’s no shortage of small business credit card offers to consider. The more time you search online for offers, the more you’ll find.
Don’t bog yourself down with an overabundance of offers on your short list. Instead, choose three to five cards and go from there.
2. Know How You’ll Use It
Don’t apply for a small business just because you think you’re supposed to. Apply for a card because it’s going to benefit you and your business.
Will you use it to make every day purchases? To pay suppliers? To entertain clients and prospects?
Review your expenses over the past six months to better understand how much you’ll use your credit card in the future.
3. Review the Features and Finer Details
This is when you begin to make real progress. Have a list of must-have features, such as those related to security and customer service, so that you can begin to trim down your list.
As for the finer details, this includes things such as the APR and fee schedule.
4. Consider the “Extras”
This is the fun part of choosing a small business credit card. There are a variety of extras that could swing you in one direction or the other. Things such as:
- Promotional offers
- Rewards programs
- Introductory APR
Some small business credit cards have more extras than others, so carefully compare what’s being offered to you.
5. Annual Fee
There are small business credit cards with no annual fee. There are also small business credit cards with an annual fee of $100+.
If you’re going to pay an annual fee, make sure you’re getting something worthwhile in return. You want to have something to show for the money you’re spending, such as a cash back program that allows you to make out financially over the course of the year.
Final Thoughts
Choosing a small business credit card isn’t as time consuming as it sounds. With basic knowledge of what you want and the assistance of the internet, you can compare offers and make a decision in no time.
