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5 Types of Cards Every Business Owner Needs

By | Elaine Bennett | Editor in Chief | Bizzmark Blog

With a wide range of business cards on the market, it can be challenging to get by and select the right one, especially with all of them offering different Terms and Conditions and different benefits (and some cons).

Choosing the right cards depends on your business needs. Some cards offer a strong return on your everyday purchases while others can earn you transferable points. 

If you travel for business frequently, getting a card with solid travel protection is advisable.

Either way, the cards you select need to be tailored to your business spending habits and needs. The cards listed below are suitable for every business owner and fit different uses. 

1. Business credit cards

Many business owners try to boost their companies by putting business transactions on their personal cards. Separate your personal expenses from the business ones and get a business card that is designed particularly for business use. 

Mixing the expenses will not only give you tax-time headaches, but it can also leave you with an inaccurate financial picture of your business. This can affect your business decisions, especially if you underestimate or overestimate your burn rate. 

To make wise financial decisions, they have to be based on hard facts and accurate figures.

Opening a business card has multiple benefits, along with separating the expenses. 

For starters, you can build your business credit score, which can help you qualify for a larger line of credit as your business expands. Also, your customers and vendors may check your business credit data to assess the risk of working with you.

Here’s one more highly important fact: basic business expenses like office rent, workers’ wages, equipment and supplies, utility costs, accounting services, and others are tax-deductible. In other words, all of the expenses that are necessary to run your business are generally deductible. 

2. Purchasing cards

Purchasing cards are designed to improve efficiency by simplifying the purchase-to-pay process, reducing the amount of paperwork, and purchase orders requirements. They allow companies to make business-to-business electronic payments for various expenses, like services and goods. 

The traditional procure-to-pay process is more expensive. According to the NAPCP, opting for purchasing cards can save you $63 per transaction on average. 

3. A card with no preset limit

Consider getting a card with no credit limit for extra flexibility. This can be useful if you finance your business expenses via a business card. 

No preset spending limit gives you the freedom to make a bigger purchase, like updating your equipment or wholesale supplies. 

Some charge cards impose large annual fees, but not all of them. For instance, Blue Business Plus Credit Card from American Express allows some spending flexibility without the annual fee. 

You can use these cards beyond their credit limit without any over-limit fees. To avoid the account’s penalty APR and paying for the full account balance, you need to repay the overrun and your minimum monthly payment. 

Make sure to do this by the bill’s due date.

Bear in mind that if you don’t pay the full statement balance every month, you’ll receive interest charges. 

4. A credit card that rewards your business spending

Reward cards offer various rewards on credit card shopping. There are three types of these cards: points, cashback, and travel. Points can be compensated in cash or merchandise. 

Some cards reward exactly those purchases that your business needs to make, like travel or office supplies. So, if you happen to travel a lot business-wise, look for a card that offers higher points on air tickets or hotel spending.

When it comes to cashback cards, acquiring a SingPost credit card will provide you with various cash rewards, including and 2% cashback on all online spending in local currency as well as all 3% on all online purchases in foreign currency.

To reap the benefits of these cards, you need to get the one that suits your business spending routine best. And don’t worry; there are plenty of bonus categories to choose from. If you spend heavily on advertising, there are appropriate cards for that.

5. Prepaid cards

There are different types of prepaid business cards, but in general, they require fewer conditions than business credit cards. They are designed to help business owners manage workforce expenses, but they don’t build business credit.

Some of these cards can be preloaded with a certain amount, and when the funds are exhausted, they are no longer usable. Others can be re-loaded multiple times at cash machines, in branches, etc. 

There are several charges associated with these types of cards, like issuance cost, management fees, and transaction or ATM withdrawal fees. 

The best-prepaid business cards offer flexible loading and spending options at low monthly rates. 

Choosing business cards wisely can help you save your company’s money, earn rewards, and even grow your business. Research on business cards’ benefits and downsides well before making the final decision to get more bang for your business money.

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