business credit cards for new businesses
What happens when you want to start a new business? You may know that you’ll need enough money to get it started, but how do you actually get that money? For many entrepreneurs, the answer lies in applying for new business loans and finding credit cards specifically designed for new businesses.
These types of credit products offer unique benefits and protections that aren’t always available through more standard types of credit. Here are some tips on how to start your business with the best possible financial footing by securing funding through new business loans and cards with the highest approval rates available online.
Earn points by using it
When you use your business credit card, you earn points for purchases—including everyday essentials like food and fuel. Use those points to buy airline tickets, hotel stays, and more. When you’re not using your card (even if it’s just in your wallet), you can still accumulate rewards. You get one point per $1 spent on most purchases. Take advantage of a 0% introductory APR to pay off big ticket items like furniture or equipment over time instead of right away. It's another way to make business life more convenient so that you can focus on what matters most: growing your business.
0% interest period
Looking to finance a new business? If so, it’s important to be aware of how interest works when using a business credit card. Many business cards give you a promotional period where your purchases won’t accrue any interest. The length of these promotions vary by provider, but can last as long as 12 months or longer. However, it is still possible to run into interest problems during that time if you make even one late payment or pay less than your full balance each month. That’s why we recommend paying off your entire balance in full every month to avoid paying unnecessary interest charges down the road.
While it’s possible to finance a business through a bank loan, many people choose to use their own business credit card instead. A business card can be an ideal way to keep your finances separate from your personal accounts, as well as give you some control over when you pay your bill. However, not all businesses are created equal. Some business cards are only good for specific types of businesses or industries. In addition, some charge significantly higher interest rates than others.
A bonus on top
If you have a good business credit card, you may be able to take advantage of perks that new businesses can't typically access. Some rewards cards offer bonus points or miles on business purchases—not just personal ones. If your spending profile fits within a particular bonus structure, you could earn thousands of dollars worth of points or miles simply by using your card in daily transactions. Additionally, most business credit cards will allow you to set up an automatic payment plan so that any bills are paid automatically and you don't have to worry about missing payments. That's less time spent making sure invoices are paid on time, freeing up time for other tasks at hand—namely growing your business!
No annual fee
Annual fees are one of those charges that start off small, but they quickly add up. Just a single annual fee can make your business spending look more like personal spending on paper, which could hurt your credit score and stop you from getting approved for business loans or other financing options. That’s why it’s smart to get a card with no annual fee — that way you won’t have to worry about paying extra every year. In addition, many card issuers offer zero percent APR introductory periods, so it's a good idea to take advantage of those as well.
In addition to zero percent APR introductory periods, no annual fee business credit cards are a smart way to stay on top of your spending. That’s because it keeps your business spending and personal spending separate so you can get approved for financing options and manage your finances more effectively. Plus, if you’re looking to boost your business’s cash flow, keep in mind that some zero percent APR offers come with hefty balance transfer fees. If you plan on carrying over balances from month-to-month, then paying off those balances sooner rather than later could save you money in interest payments.
Accepted worldwide
Business credit cards give you a way to accept payments no matter where you are or what type of business you’re in. Online businesses, in particular, benefit from using business credit cards because it gives customers an easy way to purchase goods and services using a card instead of having to pay cash or set up an account with your merchant service provider. Businesses often use business credit cards as a way to get their name out there before they can accept direct payment methods like PayPal or bank transfers. Business credit cards also allow businesses with low lines of credit—or those that haven’t yet established a good financial history—to establish credibility by accepting high-dollar transactions without being rejected by banks or merchant service providers.
Easily managed online
If you're a new business owner, managing your business's finances online can make life much easier. With most companies, you'll be able to access your account 24/7, pay bills online and view reports on spending—there's no need to spend valuable time running around town picking up checks or dealing with late payments. Of course, not all businesses are created equal—depending on what type of business you run, it may be a good idea to choose a card that offers features specific to your industry (for example, if you have lots of international transactions). Regardless of which company you choose or how many employees work with it, making sure your business is well-financed is essential to its success.
The first step to opening a business bank account is checking your personal credit score. This will allow you to determine whether or not you're eligible to receive an unsecured business loan. You may even be able to apply and get approved online; once approved, you can start building a business line of credit. Keep in mind that if your business makes use of an S corporation or LLC, it'll be treated as a sole proprietorship by most banks, which means your personal assets will be at risk should things go wrong.
