Chase offers new small business cards

Chase offers new small business cards

The Wall Street Journal recently reported that Chase will soon offer small-business credit cards. According to the report, "J.P. Morgan Chase & Co.'s Chase Card Services plans to formally launch four cards aimed at small-business owners, including a charge that would require customers to pay in full every month."

Since the start of the economic downturn and the credit crunch, it has been small business owners that have been the hardest hit. Many small businesses rely on credit cards to pull through the seasonal peaks and troughs of business.

During the credit freeze, some lenders who focused on small business credit cards exited the market. Advanta Corp was one such company that stranded many small business owners who relied on credit cards.

Skeptics of Chase's decision to launch small-business credit cards say that the decision was not based on the premise of helping small business owners obtain credit. They state that the company is pushing small business cards because new regulations don't cover small businesses -- they only cover only consumers.

Tips for smart credit card use
Credit cards can be a great leveraging tool for small business owners who do not have access to lines of credits and various other unsecured sources of credit. There are four things that every smart business owner should look at in order to use credit cards correctly.

• Pay off the balance at the end of the month, or at the end of a zero percent interest term. If you have a small-business credit card with an introductory rate of zero percent, you can let a balance roll from month to month. In fact, it's smart to do so. However, you need to pay off your small-business credit card in full each month or at the end of your special rate terms in order to avoid going underwater in credit card debt.
• Monitor spending. If you have employees that have access to your small-business credit card, require receipts on all purchases made using the card. In addition, check the statements carefully each month to ensure that your employees are not overspending or putting personal charges on your account.
• Watch fees. Currently, small-business credit card issuers can raise rates and fees arbitrarily. Watch your fees and interest rates each month to make sure you aren't getting overcharged.
• Take advantage of rewards programs. Chase's small-business credit cards "allow customers to earn one point for every dollar spent on all purchases with no limits." These points can be redeemed for cash back. Ink Cash customers earn an additional three percent cash back on business-related purchases. Keep track of these rewards and pay your credit card bill on time to enjoy the greatest benefit.

Published: October 7,2023