Best Small Business Credit Card for a New Business

by J.Crawford on February 28, 2010

Starting a new business can be an exciting time, also a time that will likely include topics like small business funding, finance, and how to structure your business. Choosing the best small business credit card for a new business might be part of the matrix. I’ve started several business and have not personally used credit cards to finance small business start ups. At this point I don’t want to advocate for or against using a small business credit card to finance a small biz start up. Rather I’d like talk about the importance of not only choosing the best credit option for your small business, but who is responsible at the end of the day to deal with debt obligations should your business slow or worse yet fail.

Getting a credit card in your businesses name is one of the bestoptions for securing a good small business card for a couple reasons. Number one, you separate yourself, and your credit score from the liabilities of your business. Number two, it gives your business a chance to mature and grow a good credit rating on its own. This can pay large dividens down the road when securing other lines of credit to grow you business. Getting more than one small business credit card is a common path for entrepreneurs and if the first new card you get is issued to your business you will have a track record to look over when the next credit company evaluates the risk your business represents to them.

There are obvious benefits to different credit cards and these companies will be happy to point them all out.  Things like 0% APR are great carrots to entice you to choose one card over another but look at it a bit more long term.  What will the money cost if you pay off your balance at the end of every month?  Will it be free?  That is probably a great place to start when choosing how to pick best small business credit card for your new business because debt with interest is a burden, there’s no ifs ands or buts about it, it’s just so.

So What’s the Best Small Business Credit Card Available for a New Business?

….huh, probably a shredded one, no seriously, I don’t have a particular pick when it comes to the most popular card or the best card, I personally like other, more creative financing ideas, that don’t include repayment or sometimes money being exchanged at all.  I mean, if your business model is such that you need a credit card to make it function, then you should use one.  If your an entrepreneur who needs a 750 plus credit score to feel financially secure, then work on your business, not your available credit limit.  There are two ways to look at credit availability, opportunity to crash and opportunity to grow.  I’d work at eliminating the down side or the chance of crashing and burning leaving someone (you) with a big debt to pay. Get some help in launching your business in debt free way via short term partners (with a clear exit strategy) or something of the sort. Will a vendor, a big one, help you start your business?

Can you find ways to fund your small without using credit cards?

Are credit cards crucial to small business finance?

What is the number one reason you like having a small business credit card?

Share your personal stories, what you have learned along the way.  It seems everyone has a perspective on debt, loans, and credit cards..

What’s Yours?

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