If your business is feeling the strain of the credit crunch then there may be some financial services that can help. One that is perhaps easy to overlook is the use of business credit cards. Whilst the economy is in a state of flux you may think that applying for a business credit card is a ridiculous notion - and, in some cases, you could be right. However, in the right circumstance, business cards may be able to help financially and may even save your company from disaster when funds are tight and borrowing is difficult.
One major reason why you may look into applying for a new business credit card is to take advantage of the 0% balance transfer offers. If you already have business cards, transferring balances can be a great way to save money, as you won't have to pay interest for a period. The average 0% balance period at the moment is around a year. If this is something that you are considering doing, many financial experts recommend that you do it sooner rather than later. If there are problems being accepted for cards now who know what it will be like a few months down the line?
APRs on business credit cards are currently relatively unchanged, but this may change. The average APR for a business card is around 15.9%. Some cards are offering lower APRs, such as 14.9%, and some higher, perhaps 17.9%. These rates are fairly reasonable for this type of card. Some financial advisors will recommend cards with higher APRs because of added features that the card has to offer. Also some cards have yearly fees which may or may not be good value for money when compared to what is on offer.
If you are currently using cheques to make purchases then getting a business credit card may also help cut costs. Cheques may incur handling charges that can be an added expense for a struggling small business. Also some cheques have admin costs - yet another expense. Card transactions are instantaneous which means that you won't be caught out by a cheque clearing when you least expect it.
Things that are unlikely to change in the current climate are services such as online banking facilities. These are going to be present no matter how the credit crunch turns out. These services are sometimes worth getting a card for in themselves. As a business tool, online banking can save a great deal of time and money. With business credit cards all of your payments are made from one account instantaneously so you aren't going to be hit by an unexpected bill or invoice when you least expect it. Being able to keep track of your money easily is going to extremely helpful in the months ahead.
Although business credit cards may seem a risky solution to the credit crunch, they can be extremely helpful for short-term financial issues and come with guarantees to protect you against fraud or theft. The majority of credit cards come with fantastic security features such as theft insurance and online fraud guarantees, with all credit card accounts now being monitored by 'intelligent' software for any sign of fraudulent activity. If there is any suspicious activity on your account then a financial advisor will give you a call and let you know. Knowing that your money is safe is going to ease some of stress that will no doubt come with the crunch-times ahead. - 15224
One major reason why you may look into applying for a new business credit card is to take advantage of the 0% balance transfer offers. If you already have business cards, transferring balances can be a great way to save money, as you won't have to pay interest for a period. The average 0% balance period at the moment is around a year. If this is something that you are considering doing, many financial experts recommend that you do it sooner rather than later. If there are problems being accepted for cards now who know what it will be like a few months down the line?
APRs on business credit cards are currently relatively unchanged, but this may change. The average APR for a business card is around 15.9%. Some cards are offering lower APRs, such as 14.9%, and some higher, perhaps 17.9%. These rates are fairly reasonable for this type of card. Some financial advisors will recommend cards with higher APRs because of added features that the card has to offer. Also some cards have yearly fees which may or may not be good value for money when compared to what is on offer.
If you are currently using cheques to make purchases then getting a business credit card may also help cut costs. Cheques may incur handling charges that can be an added expense for a struggling small business. Also some cheques have admin costs - yet another expense. Card transactions are instantaneous which means that you won't be caught out by a cheque clearing when you least expect it.
Things that are unlikely to change in the current climate are services such as online banking facilities. These are going to be present no matter how the credit crunch turns out. These services are sometimes worth getting a card for in themselves. As a business tool, online banking can save a great deal of time and money. With business credit cards all of your payments are made from one account instantaneously so you aren't going to be hit by an unexpected bill or invoice when you least expect it. Being able to keep track of your money easily is going to extremely helpful in the months ahead.
Although business credit cards may seem a risky solution to the credit crunch, they can be extremely helpful for short-term financial issues and come with guarantees to protect you against fraud or theft. The majority of credit cards come with fantastic security features such as theft insurance and online fraud guarantees, with all credit card accounts now being monitored by 'intelligent' software for any sign of fraudulent activity. If there is any suspicious activity on your account then a financial advisor will give you a call and let you know. Knowing that your money is safe is going to ease some of stress that will no doubt come with the crunch-times ahead. - 15224
About the Author:
Edward Jones writes financial articles for various websites. Read more about business credit cards and business credit cards offer here.
