Pick the Right Credit Card

The trend of entrepreneurs and small businesses to fund their growth through credit cards is increasing. The Small Business Administration reported a 25% increase in loan balances under $100,000 between June 2004 and June 2005. Unfortunately, very few fixed rate business credit cards exist, so small business credit cards often need some other incentive for the owner.

One such card that offers these incentives is the American Express SimplyCash Business credit card. It offers small business owners the ability to finance their growing businesses through the use of a credit card without some of the shackling terms of other cards.




Pros:

• 1% cash back on most purchases, with no reward limit, credited immediately
• No annual fee
• 0% APR on the first 12 months of purchases (this is big for startups)
• Use of the OpenSavings reward network

Cons:

• Not a fixed rate business credit card
• OpenSavings advertises some vendors which are not really necessary for small business owners

This is a very good card for small business owners. If you have to carry a balance, then the variable APR will not be a cheap source of financing, but it will come more quickly than going through the paperwork shuffle of getting a SBA loan or a line of credit from your bank. This card scores an 8 out of 10.

This entry was posted on Monday, August 13th, 2007 at 8:57 pm and is filed under Business Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.