Fund Your analyst highlights the importance of credit cards for small businesses analyst highlights the importance of credit cards for small businesses

Credit card financing is often seen by business owners as a tool that can be used appropriately in certain situations. Whereas, approximately 29 percent of small firms used credit card financing to satisfy their capital needs in the previous year. Ted Rossman, Senior Industry Analyst at, joins us on the Small Business show today to explain the need to know about credit cards for small businesses.

Ted has spent the past 10 years at and helping consumers maximize credit card rewards, get out of debt, boost their credit scores, protect their identities, and more. He also conducts proprietary credit card market research and writes weekly columns for both Bankrate and, often on the subject of cash-back credit cards.

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Having access to a credit card, whether for personal or professional use, is typically simple and convenient. The average national interest rate for all credit cards, according to Rossman, is around 20%. While the interest rate is 2% lower for all business queries. Rossman asserts that “personal ties can deem an individual as liable for debt and their personal credit scores, even if you open a corporate account.” He adds, “be cautious when using any card to carry debt, as the interest rates are currently relatively high.”

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Because businesses spend a lot of money and some credit bureaus have additional incentives for firms, business credit cards are frequently more profitable than consumer cards. According to Rossman, “corporate credit cards frequently provide superior perks, like cash back, sign-up bonuses, air miles, etc.” For instance, a businessman used his Capital One credit card to pay the premiums for each employee’s health insurance.

A line of credit 

With credit cards, personal and business finances are frequently entangled. However, with opening a line of credit, credit unions require more information, so individuals may pay lower interest rates. 

Less than perfect 

Ultimately, Rossman stresses the significance of striving to pay off all of your debt. Individual credit scores have a direct impact on the interest rates they’ll be charged, especially if debt is carried past the minimum payment date. Rossman continues, “It requires credit to earn credit. But, in order to demonstrate to the bureaus that you are dependable, you should always pay in full. When unforeseen circumstances prevent you from doing so, Rossman advises expanding your search.

The fintech market is continuously developing, so gaining access to capital is simpler than relying on customers to utilize local personal or corporate bank credit cards. But, Rossman emphasizes that choosing the best credit card for your personal or business needs requires extensive research because “it’s not a one-size-fits-all.”

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for ASBN. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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