Posts Tagged ‘business credit cards’

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December 2nd, 2011  Posted at   Credit
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The Plum card is perhaps the most hyped up credit card in the industry. With its unique feature that allows you to defer your payments by up to 60 days, the Plum card has become increasingly popular among start-ups and small businesses.. But should you trust all the hype and apply for the Plum card? The American Express plum is the ultimate small business and start-up credit card. It is specifically designed for small business to provide them with maximum flexibility and some unique features that fit the needs of small businesses and start-ups Key Features: The plum card from American Express is a unique small business credit card.

There are many small business credit cards on the market that provide you with points and cash rewards, but the Plum card mainly targets small businesses with cash flow issues. The Early Pay Discount feature allows you to pay your balance in full within 10 days of your billing cycle and get up to a 2% discount for paying early. You can also choose to defer your payments for 2 months (interest free) as long as you pay at least 10% of your balance. That is a huge help for small businesses that have to invest money up front to get their rewards back a couple months down the road. The payment deferment feature alone makes this card the ultimate start-up/small business credit card.

Flexibility: The plum card allows you to go back and forth between two payment method options above each and every month. If you are having a great month, you can choose to pay your balance early, and if you are having a rough month, you can defer payments, so you don’t have to be stuck with one option with the Plum card. Fees: as the plum is a cash flow credit card, there is no APR associated with this card. You need to pay your balance in full in 2 months to be in good standing with American Express. At the same time, American express doesn’t charge you any interest for the duration of 60 days. There is an annual fee of $185 a year for the Plum card, but the first year is offered for free, so you can start seeing benefits of using this card before having to pay anything to American Express. (more…)

December 1st, 2011  Posted at   Credit
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For business owners, the choices presented by the various credit card companies seem endless. There are the big names of Visa and MasterCard plus the two other giants in business credit cards, American Express and Discover. And that’s not getting into the minutiae of banks and retailers and credit unions – hell, even baseball teams – who co-brand their cards, usually through Visa and MasterCard.

So exactly what is the difference?

To cut to the punch line, the answer is, “Not much, really.” But there’s more to it than that.

Most credit cards offer the same basic set up. You have a credit limit, a grace period and a variable or set interest rate. You charge purchases on your card, receive a bill and are obligated to pay at least the minimum payment each month. All companies offer rewards ranging from point based systems to cash back offers depending on what type of card you have. Forget to make a payment, go over your credit limit, pay your bill late, etc. and you will be charged fees.

But there are also distinct differences … and those differences could have a big impact on your business.

Visa and MasterCard

The largest and most popular, more retailers around the world take cards from these two payers than any other card combined. In fact, both companies say they are accepted at more than 20 million merchants in over 150 countries around the world.

However, when you have cards issued with the Visa or MasterCard logo on them, they are not the ones who are liable for your purchases. Visa and MasterCard are payment networks, not creditors. The credit cards you hold and the offers you receive actually come from specific banks, credit unions, stores or other financial institutions. These are your issuers and they are the ones who give you the credit and who are responsible if you fail to make your payments.

Visa and MasterCard process the credit card transactions while the specific credit and terms you have for your card are unique to your issuer. This is why you may have a Visa business credit card from your credit union and a MasterCard debit card for your checking account.

American Express

Having the reputation of being more “exclusive” than other credit cards, American Express is still viewed as a company which offers “charge cards” – that is, cards which you can use to charge purchases but which require you to pay them back in full each month. Although it is true that American Express started out as a charge card only company that required annual fees for its use, they now offer many different traditional credit card programs. Some of their cards, such as their Blue from American Express Card, do not charge an annual fee. In the wake of our current financial woes, however, American Express has reined in many of their credit card programs and are returning to their charge card roots and, presumably, to their exclusive status as well. (more…)

October 18th, 2011  Posted at   Credit
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American Express gold credit card is one of the best business credit cards in the small business credit card category. If you have been watching TV lately, you have probably seen the funny commercial about the individual who uses a card with a funny card face to pay for a business lunch. The American Express Gold cards is prestigious and impressive in almost any cases and can give your small business a certain level of credibility in business situations.

So let’s talk about the cons first. The card does come with a $125 fee, which you will have to pay on your second year. In addition, you will be charged $45 for an extra card, which is waived in many competing offers. In addition, this card is a charge card, which means you will have to pay the full amount at the end of each month (your due time).

But there are so many benefits to American Gold Credit Card as well. As mentioned before, the Gold card is a prestigious card that gives your small business more credibility. In addition, you can take advantage of AMEX’s rewards program, which is the best one that is out there. You also save 3-25% on business purchases at companies like FedEx®, Delta®, Hertz®. Your first purchase entitles you to 5000 points, which should be a good incentive for you to start using this card. When you have spent $20,000 on your card, you’ll be rewarded with another bonus of 5,000 membership points. Reach $50,000 in spending and get a bonus of 20,000 points. Renew your card after the first year, and receive a bonus of 10,000 points. Spend an average of $5,000 each month and receive 60,000 points. And let’s not forget that every dollar you spend gets you a rewards point.

There are no limits for the number of points you can earn and your points do not expire. You also have the most flexibility with your points as you can choose to spend them whenever you want. You can use them for travel or entertainment activities. The choice is yours.

The American Express Gold card is for serious businesses only. The fee of $125 is not substantial but it will be an extra cost if you don’t plan on using all the rewards offered with your American Express card. Overall, the card is worth it if you have substantial small business spending each month. In that case, it can save you a lot on your future small business needs, making this card great for small businesses that are past the early stages.

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