Many business owners across the country have experienced the cold shoulder from their banks and seen their credit lines reduced as a result of rising losses, the credit crisis, and economic uncertainty. With all the doom and gloom it’s time to start spreading some positive news regarding credit cards for small business.
While major credit card issuers like Advanta have left the business earlier this year it’s refreshing to see that banks like J.P. Morgan Chase card services recently announced that it plans to launch four more credit cards specifically targeted at small-business owners! Among them will be a credit card that requires the cardholder to pay their balance in full each month similar to Amex’s card.
Richard Quigley, president of Chase Business Cards said “It’s really going to be small businesses that are going to help pull the U.S. out of the recession.” Now we have all known this from the very beginning of this financial mess but it’s about time that these national banks realize it and do something about it.
Even though this is good news for small business owners there are some that see this as a strategy that banks are pushing simply because business credit cards aren’t covered under the new regulations that restrict issuers from raising rates and fees on consumer credit cards.
Whatever the reason is I believe that the more options we have when it comes to business credit cards the better. Hopefully Chase will roll out some true business credit cards but I do like that they are introducing more options for the business credit card market.
Competition is always a good thing and when it comes to business credit cards the winner is the small business owner! For example, Chase’s Ink Bold card—the first charge card offered by a Visa or MasterCard issuer—is aimed at business owners who want to avoid paying interest charges. It comes with a variable credit line that automatically adjusts to the business owner’s spending patterns. Annual fees are $95, but the first year’s fee is waived.
Here are some other aspects to Chase’s new small business credit cards:
InkSM Bold– Chase’s first pay-in-full charge card with no interest charges
- Ink Bold has no annual fee for the first year and $95 thereafter
InkSM — developed for small business owners seeking business-sized credit limits, flexible payment options and online expense management tools with the ability to earn rewards from business purchases with no limit on how many points may be earned and the points do not expire.
- Ink has no annual fee.
InkSM Plus — the solution for small business owners seeking business-sized credit limits, flexible payment options, online expense management tools and the ability to earn rewards from business purchases including extra travel benefits with no limit on how many points may be earned and the points do not expire. Rewards points also are worth 25 percent more when redeemed for air travel through Ultimate Rewards’ and card members can earn an annual spend bonus of up to 25,000 points.
- Ink Plus has no annual fee for the first year and $60 thereafter.
InkSM Cash — designed for small business owners seeking unlimited cash back and accelerated earnings on everyday business purchases: dining, fuel, home improvement and office supplies. Ink Cash provides business-sized credit limits, flexible payment options and online expense management tools.
- Ink Cash has no annual fee.
As traditional loans dry up, banks are funneling more of their small business lending through credit cards. Since April, the top TARP recipients have cut their small business loan balances by $8 billion. With more business credit cards that will continue to hit the marketplace it’s important that you choose wisely. A true business credit card should report your payment experience to the major business credit bureaus not the consumer reporting agencies.
Marco Carbajo is founder of Start Business Credit.com
You may contact Marco directly at: firstname.lastname@example.org