Choosing a Business Credit Card for Your Startup

As a startup founder, you know two things to be true:

•    You are responsible for anything and everything associated with your new business.
•    Access to money will come in handy sooner rather than later.

While you may not be afraid of the hard work, you may be scared that funds will run low at some point. For this reason, many startup founders apply for a business credit card in their early days.

Note: just because you have a business credit card does not mean you are required to use it. For some, this is nothing more than a “security blanket” in the event that other financing and/or income dry up.

If you decide that a business credit card is something your startup needs, here are five questions to answer:

•    What are the eligibility requirements?
•    Does the credit card charge any fees?
•    What is the annual percentage rate?
•    Will you earn reward points for the purchases you make?
•    Does the credit card provide assistance with tracking business spending?

Along with the above, there is one last question to answer: is the credit card widely accepted? If you opt for a MasterCard or Visa you don’t have anything to worry about. And while Discover Card and American Express are lagging somewhat behind, the gap continues to close.

Starting a company is a fun time in your professional life. With all the stress you are sure to face, the last thing you need is to find yourself scrambling to find the perfect credit card. It is best to apply for a credit card before you realize you need it. This way, if the time comes to use it, you will have fast access to funds.