It wasn’t very long when business credit cards were only offered to large companies and corporations. However, now that more and more home based businesses and small enterprises find success in the industry- banks, financial institutions and credit card companies have also paid attention to smaller businesses.

There is no doubt that the small business industry continues to flourish and they certainly provide a fresh and huge market potential for lenders and credit card issuers. Hence, credit card companies compete with each other by offering new and better deals that are especially designed for small business owners.

For instance, Discover recently launched its new Discover Business Card with PurchaseChecks which gives business owners the option to pay their suppliers with checks (at no extra cost). This option is great because there are still suppliers or vendors that do not accept credit card payments.

American Express also launched its SimplyCash Business Card which gives small business entrepreneurs the chance to earn 5% cash back on common purchases like office supplies, mobile charges, gas, etc. These are just two of the most popular business credit cards in the market and if you do research, you’ll find a wide variety of choices.

Choosing the Right Small Biz Credit Card

When choosing a business credit card, it’s easy to get lost with all the enticing offers around you. Big rewards, Low Interest, Zero APR, No annual fees- these are just some of the offers you can find in the ads and most of them seem like a great deal. However, remember that choosing the right one really depends on your needs and spending.

Every business has its own unique spending style, needs and limits. Thus, there is not one credit card that will be perfect for all kinds of business. For instance, you’ll need to consider how you plan to pay off your balances. Do you plan to pay off your monthly balances in full or do you plan to carry your balance from month to month?

If you intend to carry a balance on your account, you should look for a business credit card with the lowest APR (Annual Percentage Rate). If a card offers an incredibly low APR, make sure that it will be a long term commitment. Some cards offer the low rate as part of the introductory offer, but as soon as the promo period ends, you may find yourself stuck with soaring rates and charges.

Business Credit Cards with Rewards

If you intend to pay off your monthly charges in full, consider a business credit card with rewards. Don’t forget to pay attention to the rules of the rewards program. How much would you really earn from your spending? Are the points only limited to selected purchases? Is there a maximum limit to the rewards you can earn? Are there blackout dates? Can you carry over or transfer your unredeemed points? How much would it cost you to maintain your membership with the reward program?

Remember, business credit cards with rewards program are only great if you can pay off your monthly balances in full and on time. Otherwise, you could be forfeiting your chances for redeeming rewards and you’ll most likely be charged with expensive interest rates and late penalty fees. If you want a business reward credit card, you need to make sure that you can submit your payments on time at all times.