In a comprehensive article by Entrepreneur.com, staff writer Cathleen Clifford reports on the best credit cards for small business owners. These specific cards offer rewards and money back for people launching a business or looking to maximize the benefits of using credit to build their business.
If you are thinking of starting a nanny agency, or any household employee placement service, it’s important to think of the financing you’ll need. Surprisingly, consumer credit cards- those you use for personal needs- are recommended for small business financing because they are covered under the Credit Card Accountability Responsibility and Disclosure Act, known as the CARD Act, which instituted measures of transparency and accountability in the credit-card industry. These protections are not extended to business credit cards, meaning you may encounter less clarity regarding fees and other terms of your agreement.
- Cardhub.com, one of the most respected credit card comparison websites, offers a side by side look of the benefits and services of each card. The rankings are determined by the best earning rewards, long term funding conditions, the ability to decrease the interest of existing debt and the opportunity to build a credit history. The top three recommended rewards credit cards are:
- Ink Plus Business Card from Chase, which boasts huge point bonuses if you spend $5,000.00 in the first three months of signing;
- Club Carlson Business Rewards Credit Card from Visa is especially beneficial if travel is required for your business and offers points exchange for free hotel rooms;
- Capital One Spark Cash for Businesses has a low yearly fee and offers $100 cash back if you spend $1000 in the first three months of signing up.
According to the National Small Business Association, approximately one-third of small-business owners use credit-cards for financing, which typically involves securing cash flow and making larger purchases. Two of the recommendations for business funding are the Citi Diamond Preferred, which is a consumer credit card that offers zero percent interest rate for 18 months, the longest in the industry. The other card is the Bank of America Cash Rewards for Business MasterCard, which offers cash back incentives. Both cards carry the protections offered by the CARD Act.
Reinforcing your nanny agency with the right financial tools is imperative for success. Download our free INA Agency Marketing Toolkit for more inspiration.
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