For small business owners, access to a quick source of funding is essential. Unfortunately, more than 75% of small businesses are worried about access to credit.[1]
The right business credit card not only offers a quick source of funding, but can offer many additional benefits, even beyond being able to pay the bills. A dedicated business credit card helps keep your personal and business finances separate, allows you to easily monitor and track business spending, can provide additional perks or incentives, and so much more.
If you’re in the market for a new business credit card, there are a few things to consider. With so many options these days, it’s important to ask yourself some specific questions before deciding which one would be best for your business needs.
1. What am I willing to spend on my business credit cards?
Some business credit cards offer great cash back options … but they come with a hefty annual fee. If you're not interested in paying a yearly fee just for having the card, then look for one that has no annual fee. Some cards may also offer 0% introductory annual percentage rates (APRs) for a certain number of billing cycles. This is a great way to pay for expensive business purchases with credit, and then to pay them off over time with no interest.
2. Will my employees need access to credit cards?
Some financial institutions only provide one no-charge business credit card per account, or a small number of extras. If you have a large workforce and it would be helpful for multiple employees to have access to their own credit cards, be sure to keep that in mind when shopping for business credit cards and consider finding a card that's no charge for extra employee credit cards. Otherwise, you could be paying quite a bit to get the number of credit cards you’ll need.
3. What do I want to accomplish with my online account management tools?
Whether you’re a small business with basic reporting needs like managing employee purchases and monitoring cash flow, or a mid to large-sized business with more robust needs for greater spending power and account management options, choosing the right credit card is crucial. For businesses requiring real-time oversight to monitor employee activity, limit purchases, manage spending effectively, and plan and budget for future business needs, it’s essential to select a card with comprehensive online reporting and spending controls.
4. Which is more important to you: Lower rates or earning rewards?
Picking a credit card with a low rate may be one of the easiest ways to manage your cash flow, especially if you aren’t certain you’ll be able to pay your balance off in full each month. This is the first question you should ask yourself when shopping around. If you aren’t worried about paying your credit card debt off each month, then a lower rate might not be your No. 1 priority. In that case, you could focus on picking a credit card that offers rewards that will be best for your business, like travel perks, cash back or points you can redeem for other things, like merchandise or gift cards.
Finding the right business credit card for your small business is so important. Luckily, there are plenty of options for whatever your business needs might be. If you need a little more help figuring out what’s right for you, check out PNC’s small business credit card options, or call or message us online to speak with a specialist who can help.
