Many credit card companies set purchase limits or credit limits for business credit cards. If a card has less credit limit, business owners may have to own several cards making it difficult to manage their expenses. However, a higher credit limit may encourage business owners to spend more than necessary and may lead to debts. It is advisable for Business executives to select a card that offers credit limit best suited to their particular business deals.
Most business credit cards offer relatively low APR (Annual Percent Rates), while some may even offer 0% APR for an initial period as an introductory offer. It is recommended to select business credit cards that satisfy business requirements at a lower APR for long terms.
There are several benefits attached to business credit cards. It is possible for Business owners to avoid carrying large cash amounts while traveling. Besides, reward points may be offered for purchases made on credit cards. The reward points can be redeemed to buy various products. Rewards such as free hotel accommodations and discounts on airfare for frequent flyers may also be included.
Generally, credit card companies do not charge any annual fees to cardholders. The expense reports provided by credit card companies facilitate cardholders to keep a track of their business expenses. Various credit card companies offer different forms of incentives to business owners.
Credit history can be a deciding factor for the credit limits offered to a business owner. It is advisable to settle the outstanding dues regularly to maintain a good credit score.