Business Line of Credit versus Business Credit Cards
I speak to many business owners and most everyone wants a traditional business line of credit. They prefer a BLOC over a BCC. I’d like to point out an advantage credit cards have over traditional lines of credit. Business credit cards are easier to obtain. They often come with 0% interest rates from 6-18 months. And they provide points or cash back which doesn’t exist with a traditional line of credit. A credit card offering points is often a great choice for those that travel frequently or want to. Many of these branded cards allow you to enjoy luxury experiences at a discount. They are great for those that want to benefit from “higher tiers” of rewards with use. A credit card offering cash back is often a great choice if you don’t travel a lot, you like simplicity, and you want an easy effort way to lower your cost of doing business (ROI). After all, you are spending money on business items and expenses you pay for anyway. Cash back credit cards allow you to lower the cost of doing business. Both credit cards and traditional lines of credit are examples of unsecured lines of credit. Meaning no collateral is needed. You can obtain larger traditional lines of credit if you have collateral but you don’t need to go that route. I prefer unsecured credit lines. Points and cash back business credit cards are a great advantage over traditional lines of credit. And there are techniques you can implement to keep your 0% rate for an extended period of time. Better yet, why not obtain both!