In an effort to entice more companies into taking on credit card debt to better facilitate their transactions, some major lenders are now offering business credit cards that are associated with rewards programs and other perks.
More competition among credit card issuers to entice small business owners into opening accounts for their companies has led some major lenders to begin offering cards with cash back rewards programs, or other perks that can make the cards more affordable, according to a report from Entrepreneur. Since the beginning of July alone, three such new accounts have been offered American Express and Capital One Financial.
Two of these accounts offer straight cash back to cardholders, while the third, offered by Capital One, grants companies lower interest rates based on where their business is based, the report said.
However, these cards for small businesses may be problematic for some because the protections extended to consumer credit cards do not apply to those for companies, meaning the terms of an agreement may be changed without notice, which could make it more difficult to get out of debt.