Business Credit Card

Advantages and Features of Business Credit Cards

Business credit cards usually have an all-round better condition-package. This is perfectly normal, a typical business pays a lot more with a credit card than a regular person. Take a big multi-national company for example. Their sales reps may have to be constantly on the go. Hotels, car costs, food, etc is all financed with credit cards. This gives the banks reasons to lower their rates. For them it means more cash, and even added security because many large firms use it, which are normally financially stable

Advantages and Features

There are endless possibilities here. For each and every card there's a starter's saving. This can either be 0% APR for the first 12-15 months, or no fees for the first year.

A very good advantage of some cards (Amex Business Gold for example) is that many Hotels give discounts to card-holders. I mentioned above that companies pay the hotel costs of traveling employees. Isn't it so much better for the company if they get a discount? If they have 50 people on the go that could be a substantial saving! Another feature the card in our example is that it offers discounts for FedEx too. If you order or send a lot of stuff through FedEx it does make a difference

Cards like the United Mileage Plus Platinum Visa Card are specifically targeted for frequent travelers. This particular card will give you 17.500 bonus miles, and 2 miles for every $1 spent. You can use this as a way to fund some traveling employees, but also as a reward to them to use on their own time.

The Advanta Platinum with Rewards is a great card which offers you either a 5% cash back for purchases, or travel rewards.

The CitiBusiness Card offers unlimited employee cards, each with individual limits that you can set yourself. It also offers a quarterly and annual business account summary. You probably have some sort of monitoring at your company, but it never hurts to get that extra help, especially if it's free.

The Discover Business Card for Small Businesses goes beyond the monthly limit you can set for employees and offers monthly summaries that detail their spending. Good help is hard to get as they say, and this is a good way to screen out those bad apples in the organization.

Overview

If you want to get serious, I suggest taking your calculator for a ride, or opening an excel file as it will take some calculation. If travel expenses are a big part of spending go for travel points, if you spend a lot on FedEx, hotels, restaurants and so on, go for a card that gives a 5-6% cash back on those sectors. If your company spends a lot on misc stuff, go for the cards that offer 1-5% cash back on anything. If you have a load of employees and want to check their spending go for the cards that give you free employee cards with monthly reports. It's your choice and a good choice really could save you thousands of dollars.

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