The credit crunch is taking its toll on all aspects of life, with some areas being hit worse than others. Now many businesses are beginning to feel the impact and some are even shutting their doors for good. In this time of financial uncertainty, banks are being a lot more cautious about whom they lend to. Many companies are turning to banks for loans and credit, in order to sail through the stormy period, only to find themselves being refused. It seems that banks and businesses are entering a survival of the fittest battle. If your business is feeling the strain, then applying for new business credit cards may be the last thing on your mind. However, they can help you through the rough period, and bring other advantages that may help in these difficult times.



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.

Card benefits are also largely unchanged at present. There are still cards offering free Airmiles, travel insurance and discounts on good and services. Some cards even allow you to tailor the benefits you receive to your own business needs. In the crunch this can be extremely useful and can be a way of making savings. If you are applying for a new card then it is important to look carefully at your particular needs before you select a card so that you can maximise these savings.

Business credit cards also come with numerous added features and these features can help cut back costs. For example, one card comes with free Airmiles and travel insurance. If travelling is a company expense and you are paying expensive premiums for insurance one of these credit cards can help. Others provide benefits such as discounts on goods and services. Once again depending on the nature of your business these may help no end.

Although applying for a business credit card may not seem the right move amidst the credit crisis, there are some instances when it can be extremely helpful. If you are unsure as to how a business credit card could help you and your business, then you can approach a business advisor associated with the card you are interested in for invaluable guidance. It is becoming harder to be accepted for credit cards in general and as the credit crunch gets worse selection processes may become even stricter. If you do need business credit cards to survive the crunch it is wise to get on the case right away before you lose the chance altogether. Currently there is very little change on business credit card APR's and credit limits but this may also change in the near future, as banks become more and more reluctant to take on more custom.