Understanding Small Business Credit Card
Business credit cards are suitable for business owners who start a new business or run a successful company. They can come with frequent flyer programs, rewards programs, cash back, insurance packages, and other beneficial features. Some credit cards come with zero introductory interest rates on balance transfers and qualifying purchases.
To qualify for a small business credit card, it is important to pay your outstanding debts on time. This way, you will show to lenders that you are a creditworthy borrower. Making timely payments over a long period of time is the way to obtain more favorable terms. As an alternative, you can save some money and apply for a high interest credit card. Being a timely payer, you will have good chances to qualify for a low interest business credit card. Paying the balance in full and reducing the balances on other credit cards will help as well.
Most banks and other financial institutions in Canada offer business cards, but the interest rates vary substantially. A low interest business credit card, the CIBC Aerogold Visa Card for Business, is offered by the Canadian Imperial Bank of Commerce. The interest rate can be as low as 10.2 percent. The card may come with an interest rate of 13.9 percent or 16.9 percent depending on the credit score of the borrower. Cardholders can request additional cards for a fee of $50 a year, while the annual fee for the primary card is $180. The minimum credit limit is $5,000, and the card comes with a rewards program. Cardholders enjoy a welcome bonus of 15,000 rewards points, earning 1 rewards point for every dollar in purchases.
BMO has several business credit cards suitable for small businesses. The BMO Gold AIR MILES MasterCard for Business goes with an annual fee of $169 and interest rate of 12.9 percent. The clients of BMO can opt for an interest rate of 19.5 percent and annual fee of $119. The welcome bonus is 150 bonus points and every $15 dollars earn 1 mile. The card is featured with car rental collision damage waiver, unexpected return home and trip assistance, and other beneficial features. Extended warranty and zero dollar liability are also available. Additional cards are offered for $15 a year per employee, and the card goes with 21 interest-free days.
Credit cards for small businesses are offered by TD Canada Trust as well. The TD Venture Line of Credit Visa Card is offered with a rate as low as the TD Prime rate (3 percent) plus 2 percent. Up to three additional cards can be requested, and there is no annual fee.
Want to know more about credit card, go to credit cards for business.