The benefits of having a business credit card are:
1. You can gain financial control by separating your personal and business expenses therefore you can see all your business expenditure at a glance
2. You can use it to finance your business for goods and services in person, by telephone or over the internet
3. Some issuers offer purchase protection against theft, accidental damage or loss
4. You can often obtain credit for up to 60 days which will help you with cash flow
5. The detailed monthly statements help to simply the accounts process as only the business expenses will be itemised
6. You can travel abroad without the need to purchase large amounts of foreign currency or order traveller’s cheques
7. Some issuers can make your travel arrangements for you
8. Some issuers will provide you with free worldwide medical and travel insurance
9. You are protected against fraudulent use of your credit card at home or abroad by someone else as long as you report it within a certain time
So how do you decide which business credit card to choose? It is much likely choosing a personal credit card. If you are unlikely to carry a balance each month then you might decide to opt for a card with a higher APR but which provides benefits such as rewards. However, if you decide to opt for a card with a lower APR check for any annual membership fees, any application fee payable, any introductory rates and what it will revert to.
Remember too that as with personal credit cards the issuer will carry out a credit check against your business and will require your accounts for at least two years business trading together with cash flow forecasts.
Syed Abedin is a Mortgage Advisor. He can be contacted at: syzab (at) btinternet.com Credit Cards UK