Small-business owners face an onslaught of choices as companies blitz them with new credit card offers.
American Express just launched a cash-back card aimed at small companies. Visa this month is rolling out a card targeting small firms with big appetites, those spending $25,000 or more a year. Discover entered the market for the first time this past summer.
Business owners should move cautiously, just as they would when shopping for a personal credit card. Rock-bottom interest rates can jump after the introductory period ends. They often soar, too, if owners make a late payment. Cash-back rewards may sound like great money savers, but not if you carry a balance subject to high interest.
Marketers smell opportunity in the 90% or more of small-business spending not on credit cards – up to $4.8 trillion a year, says Visa.
Photo by richardmason.