If you are like many business owners, then you probably are wondering if business credit cards with no balance transfer fee can really help your bottom line. In fact, it can and it is becoming more common for cardholders to do just that. It is true that not paying your credit card balance in full can lead to hefty fees. However, if you look at the bigger picture, you'll realize that the benefits of zero percent balance transfers can far outweigh the short-term hit to your wallet. Read on to find out exactly why your business should consider transferring its balance.
One thing that all business owners can agree on is that credit card debt can quickly turn into a financial nightmare. It may not seem that way now, but over a matter of just a few months, you may find that you owe hundreds of dollars to your business credit card company. And this does not take into account any possible late fees or interest charges that may be incurred. All of this adds up fast and can have a major impact on your business finances.
A business credit card with no balance transfer fee may sound like the perfect way to avoid such financial problems. After all, wouldn't it be great if you could start every month with a blank slate? That way, you don't have to worry about how much to spend on groceries, clothing or even impulse items that spur spontaneous purchases. You also don't have to worry about making sure that your monthly expenditures don't exceed your income.
This is why a business can benefit from credit cards with no balance transfer fee. By paying only the interest on a charge card, you will be able to reduce your monthly payments without incurring any additional costs. Plus, you can easily transfer that money towards paying off your company's debt.
A business can also save money by transferring their high-interest debts to a low-interest charge card. This allows you to free up cash that can then be used for paying down your company's debt. The good thing is that most credit cards today offer at least a 0% introductory rate on new purchases and balances. This means that after your introductory period, your zero balance transfer fee will still be in effect. You can use this cash for paying down your credit card balance, as well as for other business expenses.
With a business credit card, you can also take advantage of the rewards programs offered by credit card issuers. These programs offer points or cash back for purchases you make at select retailers. The actual amount of money you can get depends on the credit card company that you choose. However, the bottom line is that whatever amount you receive will be tax-free. In addition, you may be able to earn up to 2% off the cash spent on your purchases.
There are, of course, fees associated with having a business credit card. You will need to pay a yearly membership fee and annual transaction fees. The annual transaction fee is actually a charge for using your card. If . . . . . . you do not spend enough on your business credit card to meet the monthly balance, then you will not be charged anything. However, if you overspend, then you will be paying these fees.
Because business credit cards come with attractive offers, it is easy to become buried in debt. It is therefore crucial that you monitor your spending closely. It is a good idea to keep a running tab on what you spend on so you will know exactly what is going out, where you are spending, and whether you can save money. With a business credit card, you will not only be able to manage your own finances better, but you will also be able to provide good customer service to your customers.