As a self-employed person or as a small or medium-sized business owner, it can make a lot of sense to have one or more business credit cards (if you still have employees).
Advantages of a business credit card
Not only is the expense report much easier if you can separate private and business costs, there are also other advantages:
- Cashless payments worldwide (in hotels, shops, restaurants, etc.)
- Get cash from ATMs in local currency in most countries
- Easily shop online: Book flights and trips quickly and directly online
- Greater flexibility thanks to an even larger credit line
- some of the credit card still have various additional insurance policies (but unfortunately there are many exclusion clauses here, which means that such insurance policies are often not very useful)
- Easier and faster accounting through transparent and separate accounting
What should I consider when choosing a credit card?
The lower the annual fee, the better. But you should look closely at the conditions. Because some credit cards are only free if you implement a certain minimum turnover with the card per year. Other credit cards are linked to the checking account, where the cost of the checking account may be very high.
With a business credit card, the credit line is usually sufficiently large. As a rule, this can also be easily expanded with a good credit rating. So that plane tickets and hotel accommodation can also be paid for on business trips if they become more expensive than expected.
If you want to use a credit card to withdraw money from ATMs, you must note that banks can charge fees, some of which are not insignificant. At least if you use this credit card more often to withdraw cash, you should definitely look at the fees for cash withdrawals.
Many self-employed and entrepreneurs are often abroad. The credit card is an ideal payment option, especially when traveling. If you use the credit card more often when traveling, you should take a look at the foreign currency fees.
An example of a good business credit card is the Cream Bank business card. This offers self-employed people some functions that can be very useful. The conditions are also convincing.