If purchase orders are taxing your system and your employees are begging for reimbursements, now may be the time to consider a credit card for your business.
The Better Business Bureau offers the following tips on picking the right card:
Do your research. Many banks and credit card companies are making various offers with attractive perks that may fit nicely with your business needs.
But offers run the gamut, so be choosy. You’ll want to find out about offers from both your local banks and national credit card companies.
Don’t get burned by special offers. As noted, there are many offers and plans available for small business owners, but pay specific attention to business credit card plans with introductory offers for 0% APR. While this may be a good option for an immediate high-end purchase to support your business, you need to find out what the conditions for the APR are – under what conditions will it rise, and what are your options if it does rise. Beware of getting stuck with a high APR after the introductory period.
Consider the rewards. Many cards will offer perks for both you and your employees, including discounts with preferred vendors and airlines as well as rewards points.
Lay the ground rules. Make sure your employees know exactly what can and cannot be charged on the credit card. Some cards will let you adjust the credit limit on individual employee cards, as well as limit where the cards can be used. n
Source: The Better Business Bureau, www.bbb.org.
