Guide to Business Credit Cards

Get the credit card features your business needs

The business of credit cards has become very complex. From varying interest rates and finance charges to grace periods and rewards programs, understanding the nuances of the best credit cards can be daunting. Add to that the fact that every business will likely use business credit cards in a different way, and it becomes imperative that business owners match their unique circumstances to particular credit card features.

I recommend: Compare interest rates, finance charges and perks of leading credit cards through CreditCards.com and CreditCardGuide.com.

Secure the best credit cards for your business

The most common credit cards - Visa, Mastercard and American Express - are widely available. The largest share of the market is comprised of large banks such as Citibank and Bank of America, but many smaller institutions also offer competitive small business credit cards with a number of perks - such as no annual fees or payback rewards.

I recommend: Visa, Mastercard, American Express and Discover all offer resources for small business credit cards that allow you to shop online for the best credit cards to meet your needs.

Use business credit cards to manage cash flow

Small business credit cards can help you maintain your cash flow. When funds are low, credit cards can be a great source of interest-free, short-term loans and can allow you to make important equipment purchases. Be sure to develop sure-fire strategies for managing credit card debt to ensure continued positive cash flow.

I recommend: Bankrate.com offers a credit card calculator that helps businesses determine the “real” cost of debt as well as what it will take to pay off the balance of business credit cards. Keep these costs in mind when forecasting cash flow.

Track employee expenses with business credit cards

Use business credit cards as a way to track and manage employee expenses. When employees use business credit cards to make business-related purchases, such as entertainment or travel, you'll have a monthly record of all activity on the account.

I recommend: Discover offers free employee credit cards with real-time spending limit control and lets you view statements online and sort charges by employee. The MasterCard Business Card also lets you set employee spending limits to control your finances.

Take advantage of credit card rewards programs

Business credit cards that offer rewards for using the card can pay off. For instance, if you travel extensively for business, look for a credit card that offers airline or hotel rewards. Similarly, retail rewards can often be used to purchase office supplies and other office equipment.

I recommend: LowCards.com offers comparisons of business credit cards and the rewards programs they offer.

Increase credit limits and lower interest rates on business credit cards

To ensure that you get the buying power you need from small business credit cards and to minimize the amount of interest you'll have to pay for that privilege, you need to have a good credit score.

I recommend: Bankrate and FICO offer strategies and tips for improving your credit scores, which can help you increase credit limits on business credit cards and reduce interest rates.