Business credit cards offer an efficient alternative to the petty cash and cheque systems traditionally used in businesses. Both self-employed and large business owners alike would find business credit cards an easier option, enabling you to see what is being spent where, and enabling you to reduce both company expenditure and the amount of administration. If you are a small, or even one-person operation, then a business credit card can be very useful in keeping your business and personal transactions separate, avoiding the need to use your personal credit card for business items.
Most business credit card providers enable you to decide how many extra credit cards (with the company name) will be needed for staff to use and allow you to stipulate the credit limit for with each individual card. Business statements can usually be tailored to suit companies’ own finance requirements and give details of overall company expenditure each month and individual breakdowns for each business card relating to the account.
Business credit cards often come with a range of incentives related to business. For instance some offer discounts on business related expenses or the facility to accumulate air miles. These extras often come with insurance features including travel insurance, extended warranties on selected products and purchase and anti-fraud insurance.
Some of the low introductory interest rate offers that you see on individual credit cards are also available on business credit. There can be an annual fee associated with a card, so before applying it is always best to check, as well as looking at the standard interest rate that applies after the initial period. By comparing the interest rates, fees and incentives offered by each provider, you should be able to find a business credit card that best fits the need of your company.
The MBNA Business Self Employed Credit Card charges no fee and keeps your business activities in one place. It is available to businesses which have been up and running for at least two years. There is a low introductory interest rate of 4.9% on balance transfers and credit card cheques for six months from the opening of the account, and an APR of 17.9%. As with most individual credit cards, you can get up to 57 days interest free purchases if you pay your statement in full and on time every month. You can manage your account online, viewing balances, each card’s credit limit and up to 13 months of transaction history.
