All the major business credit card issuers have set their eyes on the growing small business credit card market and are trying really hard to get a bigger slice of the pie. They have also realized there is a strong segment of the small business credit card market that could equally benefit from the features of small business credit cards: the group of small contractors and construction companies.
The business credit cards designed for contractors have the objective of inducing them to do away with invoice-based payments by check and to rather shift to more frequent use of their business credit cards. An industry study has shown that less than 5 percent of all spending in 2006 was done by charging the expense to the business credit cards of business owners. The business credit card issuers would prefer small business owners to think of using their business credit cards for everyday business-related expenses and not just for travel and entertainment.
MasterCard launched its industry-specific business credit card designed for construction companies last year. This card also allows longer payment cycles than usual. A similar program for business credit card holders is offered under Chase Contractor Visa Business credit card program. These programs give access to promotional financing and enjoy a strong rewards package. There is no pre-determined limit on spending. This enables contractors to pay bigger-ticket business expenses by using their business credit cards instead of writing checks. Purchases of construction materials amounting to at least $1,000 will be subject to a longer 60-day payment term; purchases below $1,000 will not qualify for this promotional financing benefit.
There are limitations that you should bear in mind, especially if you are angling for the rewards points and discounts. The bonus points are earned only on net purchases that are made with contractors that have classified their merchant locations to the company as contracted building services, building and construction materials, and landscaping services.
There is a limit to the bonus points that can be earned in the categories mentioned above: 20,000 points per month. That is equivalent to $20,000 worth of purchases on your business credit card. However, there is no maximum number of base points that can be accumulated. You will need to distinguish between the two point types.
The business credit card holder should examine the fine print closely to inform him- or herself with the particular services, materials and products that will qualify for rewards points if paid with their business credit cards. The qualified merchants may not be quite as confined as those of the usual branded business credit cards, but still there are limitations.
Your business credit card has no pre-determined limit on spending. But that does not mean you can spend indiscriminately. If a particular purchase amount will result in your business credit card account going over your credit limit, only the portion that falls below the limit will qualify for the rewards points. Beyond that, every charge that causes a breach in your credit limit will be subject to evaluation before it is authorized; the evaluation will take into account both your spending pattern and payment history.
Not owning and using credit cards is not a valid option nowadays. They play a crucial part in people's lives whether we are talking about an ordinary single user or a corporate entity. We no longer have to carry around large amounts of cash for making purchases and a credit card also provides an escape route when you have to pay for something in case of an emergency. These are the main benefits of credit cards that anyone can experience first hand but there is nobody enjoying more from the advantages than the business establishments.
The executives that are part of corporations or any other businesses feel the need for the business credit cards, especially when we are talking about individuals that are constantly in contact and interacting with other people like customers, clients, or business partners. It is nothing out of the ordinary for a company to issue business credit cards for the employees. This will serve as a very convenient way for both the corporation and the employee to manage and calculate the business related expenses.
This way, personal expenses will be sorted out from the business expenses in order to provide a clear view over the business operating expenses and also monitor these expenses for tax and accounting purposes.
More and more companies and corporations are attracted by both the benefits of issuing secure business credit cards for selected employees, and the enticing deals that credit cards operators and financial institutions are offering with the signing up of these corporate credit card services. Credit card companies can even throw in deals like waiving the fee for a limited period of time or even offering discount points to business related expenses like flight tickets or office supplies.
This type of business credit cards can be signed up on various credit card companies or financial institutions, each of them offering different reward points and benefits. Because of the large number of companies that are providing these services and the complexity of the offers with many levels of benefits, it can be a bit difficult to evaluate all the offers in order to find the one that best suits your company needs. Stacking up the offers on sheets of paper in front of you is not likely to succeed.
The alterative for this evaluation is to take advantage of one of the few websites that try to simplify the choosing process for a potential customer. They will list almost all the credit card companies available on the market at a certain point, each of the offers weighed in terms of advantages and benefits, and disadvantages. This way, the future client will no longer be put through a tedious process of sorting out flyers and paper sheets but easily browse through the data to make the most intelligent selection.
The business credit cards are more and more of a necessity, providing people with the opportunity of making business transactions with more ease than ever before.
Both Creditwisdom & Devin Gilliland are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Creditwisdom has sinced written about articles on various topics from Business Credit Cards, Franchise and American Express Card. Devin Gilliland Provides Expert opinions and reviews to help you Compare - Compare. Creditwisdom's top article generates over 14800 views. to your Favourites.
Devin Gilliland has sinced written about articles on various topics from Gardening, Credit Cards and American Express Card. The author Devin Gilliland provides advice on how to on. Devin Gilliland's top article generates over 201000 views. to your Favourites.