How to choose a credit card for your business.
For many businesses, a Commerce Bank Business Credit Card is more than just a way to make purchases. It can be used to manage cash flow, simplify expenses and build business credit. Choosing the right business credit card for your business depends on how you’ll use it and how you plan to make payments.
Will you use it frequently and pay the balance each month? Do you want to earn rewards on everyday expenses? Or do you anticipate carrying a balance from time to time and want to minimize interest costs? Understanding the different Commerce Bank Business Credit Card features and benefits can help you choose the one that best aligns with your needs.
Credit card benefits.
All of Commerce Bank’s credit cards offer several advantages to help your business manage its finances and prepare for growth:
- Float to help cash flow: Paying by credit card instead of check or ACH gives your business at least 30 days to use your existing funds.
- Access to funds faster: Credit cards allow you to make quick purchases and seize immediate opportunities, unlike loans or lines of credit, which can take weeks or months to secure.
- Build business credit: Responsible use of your card and on-time payments can strengthen your credit profile when applying for loans or lines of credit later.
Types of business credit cards.
Depending on how you plan to use your credit card, and your payment plans for it, will help determine which type of card is best for your company’s needs:
- Rewards cards for frequent spenders: If you have steady cash flow and anticipate paying most or all of your balance each month, a rewards-based card may be right for your business. You are in a position to use your card for everyday purchases like office supplies, meals, gas or other operating expenses. With these purchases, your business can earn points or cash back rewards, especially within quarterly bonus categories.
- Low-APR cards for businesses carrying balances: Low-APR business credit cards are designed for businesses that expect to carry a balance, often referred to as a revolving balance, and want to minimize interest costs. The benefit of these cards is their low interest rates, which are helpful for businesses with inconsistent cash flow. The goal isn’t to encourage debt, but to provide flexibility when the timing of receivables and payables doesn’t align perfectly.
Expense management with credit cards.
Regardless of which option you choose, Commerce Bank Business Credit Cards offer features that can improve your daily operations, especially for managing expenses. Credit cards make it easier to control spending, simplify expense reconciliation, and gain financial insights.
- Control spending: Issue cards to specific employees with individual spending limits.
- Simplify expenses reconciliation: Avoid asking employees to use personal cards or pay with cash, track down receipts, manage the expense report process, and issue checks or ACH.
- Improve financial predictability: Use data from statements and transaction insights to improve your budgeting and forecasting.
The bottom line.
The right business credit card depends on how your company spends and manages cash flow. Whether you’re getting the most from your rewards on everyday purchases or prioritizing lower interest when carrying a balance, Commerce Bank offers options designed just for your needs.
