Choosing the right business credit card can not only streamline your business spending, it can also have a positive impact on your bottom line. When evaluating the right card for your business, consider the following:

1. Assess Your Business Spending Habits

Identify your major expense categories (e.g., travel, office supplies, advertising), and choose a card with rewards tailored to these spending categories. For example, if your business does a lot of travel, you might benefit from cards offering airline miles or hotel points.

2. Consider Fees and Interest Rates

Evaluate annual fees versus benefits. You might find a card that provides higher benefits than another, but it has a significant annual fee. Make sure the rewards you will earn outweigh the cost of any fees. If you think you will carry a balance, make sure you evaluate the interest rates to obtain the cards with the lowest rates. You might also consider a card with a low or 0% introductory rate for financing large purchases.

3. Look for Expense Management Features & Fraud Protection

Some credit card programs have built-in expense management platforms that can help you manage employee spending limits to provide more controls. Some cards also have receipt tracking and categorizing programs that will help your employees to manage their expense reporting. Look for cards that integrate with your accounting software to make your bookkeeping easier. Look for a card that offers fraud protection and has a zero liability policy.

4. Consider Credit Limits and Spending Power

Some cards have no preset spending limit, which can adapt to your business needs. However, those cards typically have to be paid off every cycle. Other cards are going to have strict limits, but will allow you to carry a balance. Make sure you choose a card that aligns with your monthly cash flow and spending requirements.

 

Today’s business credit cards have benefits that go beyond simplifying your spending. They offer rewards customized to your business that can have a positive impact on your cash flow. Find the right credit card for you and don’t be afraid to switch cards as your business grows and your needs change.

 

Don’t know where to start? Use a website like NerdWallet to do a side by side comparison of options.