Secured Business Credit Card
There are many ways to obtain a Business Credit card and there are quite a number of companies in the market who offer the same in different angles . The vital factor for taking the Business Credit card is the purpose of taking it . Before taking the Business credit card it is best advised to do a research about the companies which are providing the Business credit cards . Go through each and every aspect of the terms and conditions of provider especially the interest rates and annual fee charged . Most important thing would be to work on finances on your side and estimate how much you can pay each month and expenditure you can practically afford .
Important Factors to Consider
1) Main purpose of the Credit Card .
2) Procedure for using the Credit card by employees who are authorized .
3) Reports for the Credit Cards.
Basically Credit cards fall into different categories , Business Credit card fall into a different class altoghether . Before going for secured Business Credit it is very important to know the use of the credit card and its consequences it not handled properly .These cards taken can be used for business purchases , buying the commodities or materials for the business , meeting the employees expenditure if they are travelling on business purpose or to honour any other expense in the name of business .
Unlike other Business cards the Secured Business Card is backed by collateral and intial deposit which you provide before taking up the card . Prompt payments on time and no defaults will make the business life smooth and with greater financial reach .
Some of advantages of taking a Secured Business Credit Card are ...
1) As the Secured Business Card is taken on the name of the business , the Interest rate would be much lower than the other cards .
2) As it secured by an asset , Collateral or a deposit now a days most of the businesses are using these kinds of cards .
3) Companies providing these types cards offer unique travel offers discounts and other facilities for their customers .
For Business people this card will ideally suit in case of a business travel where in they have to carry large amount of cash . This card eliminates the burden as money can be transferred electronically . Added to this the card will record all the transactions made and its the Business Credit card provider's job to give the report of the all transactions made on the travel .These companies usually give Business credit cards to all employees in the business but the credit limit would relatively low . Every time the employee uses the Business credit card he/she earns a reward point which can be redeemed at different outlets . The Credit card provider and the merchants will have mutually tie up . added to this these cards can also be used for funding the deals and for the working capital .If you think your Business requires a Business Credit card then do a research about the various lenders who are offering the cards and their interest rates charged for the same .
Typically the interest rate would vary from lender to lender .It is best advised to compare the offers of various lenders and select the one which is best suited to your requirement .A word of caution is to watch out for the credit limit that you have set .You are required to pay an amount towards the card and use the same till the amount in the card lasts . you can also add the amount to the card account .
There are some rules set by the credit card companies when you deposit the money to your credit card account . You are required to pay a minimum amount everytime towards the account and at the same be carefull about the limit of Secured Business Credit card . High credit limit can ask for higher annual fee for the card . The charges for the card will be based on the average balance used up every day . These factors are to considered before applying for applying the Secured Business Credit card .Many lenders provide lnitial low rates for certain period but once the period is over they switch back the charge to higher amounts . It is always a good practice to have a detailed discussion with the lender and agree upon terms and conditions before going for the Secured Business Credit card .This approach would certainly help you to get a good deal .