When it comes to business credit cards – and there are several – shrewd businesspeople should look for a few common features. The best business cards all have a few things in common. Let’s look at the makeup the of the credit card landscape for business credit card users.
Here are a few features to look for:
1. Business acceptance – Look first for a business credit card that accepts members as businesses, not as individuals. In particular, a business credit card should not require a personal guarantee. A personal guarantee requires that a business owner sign for the card in his or her name, which means the business owner – not the business – is liable for the debt.
2. Credit reporting – Business credit cards should report only to Equifax business credit or Dunn & Bradstreet, companies that track credit for registered businesses and corporations doing business under their own name. A credit card company should ask for your company’s D&B number, or a tax ID known as an Employer Identification Number from the IRS.
3. Rewards – Business credit cards should feature some of the best rewards on the market. The truth is that business credit card users spend far more money each month than individuals – and their spending should be rewarded. Generally, business credit cards give out sign up bonuses along with a healthy dose of rewards points or cash back benefits for each dollar you spend.
Spend the time to survey the market before you commit to a credit card. Unlike the personal credit card market, credit card companies are not as aggressive in extending multiple credit lines to one company, so you’ll want to choose wisely. Let the perks be your guide – make the credit card companies pay for your very valuable business relationship.