Achieve Business Goals with a Credit Card

Small businesses face many challenges in order to stay afloat in today's fast paced, competitive business environment. In fact, a sizable percentage of small businesses fail before the first 5 years of operation are complete. But, you can improve your odds and help your small business succeed with the help of a credit card.

Take Advantage of the Grace Period

Most of today's small business credit cards offer a grace period ranging from 20 to 25 days. During the grace period, if your balance is paid in full, no interest is charged. Being able to float your expenses, interest free, during the grace period can give you a real advantage and keep your business in good standing while you are waiting for your receivables to arrive.

Get a Great Interest Rate

What if your income doesn't arrive during the grace period? Not to worry. Small business credit cards are offering very competitive interest rates. Many of them are even generous enough to offer an introductory 0% interest rate for the first 12 months. Occasionally you can find one that offers the 0% interest for as long as 15 months. This can give your business the huge advantage of being able to make purchases necessary for growth and maintenance, while allowing you to pay them off gradually at your convenience.

After the first year, interest rates for small business cards usually fall into the range of around 8% to 14%. It pays to do your research and shop around in order to get the best deal. A few percentage points of interest can add up to huge savings or expense.

Transfer Balances to Cards with Lower APRs

If your business already has some debts, once you've secured a business credit card with a low interest rate, you may want to consider balance transfers. Most small business credit cards offer this feature for a fee as low as $5, which would then enable you to pay off existing debts at a lower interest rate. If you decide to transfer balances during an introductory 0% interest period, you would be able to make interest free payments on existing loans.

Obtain the Line of Credit You Need for Success

In order to make the most of a small business credit card account, credit limits need to reflect a realistic understanding of both true business expenses and a business' capacity to handle them. A great range of credit is available for small businesses, with limits that can be as high as $35,000 and in some cases even $100,000. Having the security of a realistic, yet generous, credit limit can give a small business owner the confidence to make financial decisions that will insure the success of the business.

Provide Employees with Purchasing Power

In many small businesses, the owner isn't the only one who needs to make purchases for the business. The purchasing needs of each employee can also vary greatly. Your traveling sales rep will have very different expenses from your administrative assistant. This is another area where a small business credit card can help you. Most accounts offer free additional cards for your employees and let you set appropriate limits for each one.

Steer Clear of Fees

A traditional down side to credit cards has been high fees. Annual fees in particular can seem like profits poured down the drain. But, a great deal has changed in recent years. Many creditors are offering small business credit cards with no annual fee, not just for the first year, but permanently. This gives your business the opportunity to get all the benefits of a credit card at no cost.

Enjoy Great Rewards

Finally, rewards from a small business credit card can give your business a real boost. Years ago, rewards on business cards used to be only airline miles, but there have been a lot of improvements over the years. Some cards offer as much as 5% cash back on certain purchases. Others offer a points-for-rewards program where you can redeem points for business equipment or incentives for your employees. Still others offer discounts for your business at participating retailers.

With all these benefits, a small business credit card can give your business just the extra boost it needs to succeed.