In recent years, the start-up scene in the Philippines exploded with both foreign investors and local entrepreneurs capitalizing on the wide range of business opportunities in the country. One sector, in particular, is benefiting significantly from the flourishing of new enterprises – the financial services sector. With so many financial products being aimed at businesses, however, it is not surprising that many business owners are feeling somewhat overwhelmed by all the available options. When it comes to choosing the right credit card for your business, it’s important to be aware of some basics before settling on the option that will suit your business’s individual needs best.
Assess your spending habits
A good place to start is to take a look at your business expenditure over the past six months to try to identify your spending habits. Take an objective look at how much you spend, how you spend, and your ability to make repayments in a timely fashion. If you’re planning to pay off your purchases within the billing cycle, consider a card that boasts a longer grace period (the period given before interest is applied to the outstanding amount). If, however, you see yourself carrying a balance forward, it may be in your best interest to seek out a credit card that offers the lowest interest rate possible.
Have a closer look at potential fees
There are a number of fees that can be levied against your business credit card, such as an Introductory APR, finance charges, late fees, over-the-limit fees and, of course, annual fees. Whereas it used to be customary for all credit cards to have annual fees attached to them, this is no longer the case. In fact, an increasing number of credit card providers are rescinding a yearly charge in a bid to not only attract clients, but to enhance the overall client experience as well. While weighing up your credit card options, it is important to have a closer look at the various fees attached to each card and to fully understand what their potential impact may be.
Consider various perks and rewards
Whereas good customer service and low-interest rates were what set one credit card apart from another a decade or two ago, added perks and rewards have become the golden bargaining tool in current-day business. Depending on the nature of your business and spending habits, you may benefit significantly from reward programs that offer airline miles or cash-backs as a reward. If you and your staff travel frequently for business purposes, an airline mile reward system may suit you well, and cash-backs are always welcomed as well. Apart from standard award programs, certain credit cards may also offer additional perks, such as car rental or travel insurance cover, upgraded airport lounge access, and discounted accommodation. While all of these rewards and perks may be enticing, it is important to only settle on those that will benefit your business in the long run.
Choosing the right credit card for your business is very important. Not only can a rash decision end up costing you more money in the end, but you can also miss out on potentially-great rewards and perks that could benefit your business significantly.