Written for WPIC by: Credit Card Insider
The Wedding Professional’s Guide to Choosing the Right Business Credit Card
Wedding planning is a coveted career, and why wouldn’t it be? There is something invigorating about helping a couple plan, design, and realize their perfect wedding. As with any business, wedding planners should look into separating their personal and business finances. A great way to do this (as well as reap other rewards and benefits) is to find the right business credit card and utilize it.
Business credit cards function similarly to personal credit cards. However, they are designed to assist small-to-medium businesses in funding and providing services. The rewards and benefits suites of business cards are devised to endow advantages to small-to-medium businesses. These include:
- Assistance in separating your personal and business finances
- Allowing you to better manage your wedding business’ cash flow, giving you 20–30 days to pay off business expenses put on the card without interest
- Enabling you to earn rewards for your business expenses, such as cash back or points
- Benefits tailored for businesses, such as extended warranties, purchase protections, discounts and more
- Higher credit limits than personal credit cards
- The ability to build your business credit scores
6 tips to help you find the right business credit card
While there is no such thing as a universally superior business card, there are some general pointers you should follow when choosing one. However, with so many business card options to choose from finding the right one for your wedding business can be overwhelming. Keep the following in mind when comparing different cards on the market. Doing so should help you in finding the card that is right for you and your wedding business.
Tip #1: It’s worth the annual fee
Many business credit cards come with an annual fee attached. Annual fees on business cards can range wildly, from under $100 to $500+. Don’t be deterred by a business credit card’s annual fee straight away. You should look at a card’s rewards and benefits, then weigh it against the fee. There is no point in paying for a large annual fee card if you will not make use of the rewards and benefits frequently. The idea behind a business card is to bring your business value, not lose money.
Tip #2: It rewards you for the purchases you make the most
Being a wedding professional comes with costs. Costs can include travel, accommodations, or anything in between. The right business credit card can give you reward points or cash back on your most frequent business expenses. Over time, cash back or rewards points can accumulate to significant sums, saving you and your business a lot of money.
Business credit cards are varied in their reward categories. When looking for a credit card for your wedding business ask yourself what your largest and most common expenses are. For example, this could be flights, gas, or staying in hotels. Once you have pinpointed your largest and most common costs, look for cards that reward you for making these purchases. Another important factor to look at in a potential business card is reward redemption methods. Different cards generally have different ways in which you can claim back rewards points. Different redemption methods can give you different values for your rewards points. Make sure to investigate what card and redemption method will give you the most value back in rewards.
Tip #3: Its benefits bring you value
A great benefits suite can make a card hugely valuable to your business, especially when it aligns with your business’ goals. Benefits suites can differ greatly from card to card. Therefore, prior to searching for a business card, have a solid idea of what your business’ goals are. Once you start researching different cards, ask yourself: Does this benefits suite align with my goals? For example, a travel-oriented business card may have benefits such as expedited airport screening, private airport lounge access, and yearly travel credits. Benefits such as these would be hugely beneficial to a wedding planning business whose employees frequently fly for work.
Tip #4: It has a good signup bonus
Many business credit cards come with substantial sign-up bonuses when a certain sum is spent on them in the first few months. Business card sign-up bonuses are generally higher than that of personal cards. However, it is not recommended to try to hit the requirement for a sign-up bonus if it will ultimately cause you to be in debt. Credit card debt could lead to interest fees that easily negate the signup bonus and detrimentally affect your business credit scores. This could make it harder for your wedding business to secure credit in the future.
Tip #5: It has no foreign transaction fees
Are you a wedding professional who works in several different countries with varying currencies? Then a no foreign transaction fee card is a must. Such a card will save you a significant sum in the long run. If your wedding business is securely rooted on home soil, this is less important.
Tip #6: It has good customer support
While it may not seem like much, a great customer support service can save you a number of headaches. A card provider known for good service can streamline your business activities and make your life a little easier.
Finding the business card that compliments your wedding business doesn’t have to be a chore. Following these six tips should help the process go smoother. In conclusion, always remember that business credit cards are serious financial tools and should be treated as such. Use business cards responsibly, or you risk damaging your personal credit as well as you’re business’ credit. Only spend what you can afford to pay back in full when the bill is due and always pay your bills on time. Doing this will allow you to reap the many advantages of business cards for your wedding business.