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flevyblog
The Flevy Blog covers Business Strategies, Business Theories, & Business Stories.
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Editor's Note: Take a look at our featured best practice, Working Capital Management Strategy (84-slide PowerPoint presentation). Working Capital Management (WCM) refers to the administration of an organization's short-term assets and liabilities to ensure its ongoing operational efficiency and financial stability. Effective WCM is crucial for maintaining liquidity, optimizing cash flow, and ensuring the organization can [read more]
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Business credit cards have different benefits, credit limits, interest rates, and other core business features. Thus, as a business or start-up owner looking to grow and scale, being very mindful as you select a business credit card is the best way to ensure you get one that serves your business needs and goals.
Unfortunately, choosing the right business credit card can be tricky because of the many available ones. This blog highlights key things you should consider to ensure you select the right business credit card.
Does the credit card you’re considering suit your business needs and align with how you plan to use it? If not, then consider another one.
Here, you need to pay attention to the following key things to determine if a business credit card is ideal for you:
Business credit cards have different fees, which is why you need to know about the charges your card will attract, such as:
Researching and comparing your choice of business credit cards will help ensure you know which fees you need to pay and when they apply, which is bound to make it easier to choose a credit card that aligns with your business needs and goals.
Business credit cards can offer others benefits–besides rewards. The features and benefits you might get with some business credit cards include the following:
Remember that the more rewards, benefits, and features you get from your business credit card, the higher the probability of higher annual fees or interest rates. That said, you shouldn’t discount a card until you’ve weighed up all of its benefits, features and conditions against what you actually want out of your ideal package. So for instance if you’re investigating good CitiBank credit cards to have, this attention to detail will serve you better than imposing a blanket ban on perk-packed deals.
As mentioned, some business credit cards have an interest-free period, but eventually, you will need to pay interest, which is why you should consider your APR.
For large business purchases you want to finance via business credit, consider using a credit card with a low APR or one that offers an interest-free promotional period–this is especially great if you intend to pay the balance in full.
Conclusively, before settling on a specific business card, weigh the business benefits of each, including features and rewards, and then go shopping for a business credit card that meets your exact needs.
Additionally, remember that you should go for a credit card that your business can pay off comfortably.
You can download in-depth presentations on Cash Flow Management and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.
For even more best practices available on Flevy, have a look at our top 100 lists:
These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.
