Business Credit Cards

Business credit cards can be a better alternative to petty cash and cheque books used in businesses. Business credit cards enable you to see where money is being spent in the business, whether you are self-employed or a large business owner.

They can also reduce company expenditure and administration. As a small operation, a business credit card can be very useful in separating your business and personal transactions, and avoid the need to use your personal credit card for business items.

Most providers of business credit cards let you decide how many extra company credit cards will be required for staff to use and also let you to stipulate the credit limit for each individual card. Statements can be tailored to suit companies’ own finance requirements and give details of overall company expenditure each month and individual breakdowns for each card on the account.

Business credit cards more often than not come with a number of incentives related to business. For example some offer discounts on business related expenses or air miles. These extras may also come with insurance features including travel insurance, extended warranties on selected products and anti-fraud insurance.

Some low introductory interest rate offers may be available on business credit. There may be an annual fee associated with a card, so it is always best to check, as well as looking at the standard interest rate that applies after the initial period. You should be able to find a business credit card that best fits the need of your company, by comparing the interest rates, fees and incentives offered by each provider.

MBNA offers a Business Self Employed Credit Card with no fee. It is available to businesses which have been up and running for at least two years. The introductory interest rate is 4.9% on balance transfers and on credit card cheques for six months from the opening of the account. The APR is 17.9%. As with most individual credit cards, you can get up to 57 days interest free purchases by paying your statement in full and on time every month. You can manage your account online, view balances and each card’s credit limit, plus up to 13 months of transaction history.

There are a number of benefits.

O2: 10% discount off the advertised retail prices of any of the business voice and data tariffs.

DHL: Get 10% off the online rate.

Google: Get £50 of credit for targeted advertising and new business leads.

Dyno (part of British Gas): You can benefit from 15% off standard rates for many services.

DMSL: Gives you preferential cash-back rates on a wide range of BT Business Services.

Rawlinson Butler: Offers 10% off its standard rates for legal services.

Reed Learning: Offers a 25% discount on over 170 courses.

UOE: One of the major office and stationery supply specialists, offers a range of savings for Visa Commercial cardholders:

City Sprint: Offers up to 20% off a range of courier services.

Barclaycard has a range of business credit cards for different sized organisations. Small businesses can use the card makes payments simply and conveniently, providing extra cash flow flexibility. Large organisations have a choice of payment solutions to suit the organisation’s needs to help control expenditure. There are several cards: Business Corporate card account; Business Purchasing card account (businesses with turnover over £10m); Business Lodge account (for larger organisations with significant air travel); Multinational organisations have an option too.

Tom Smith
18th September 2007