A small business credit card can be used by to:

1. Fund day-to-day business operations and an entrepreneur’s home expenses too!

2. Pay for purchasing office supplies.

3. Use as a fallback mechanism in cash crunch scenarios.

However, it is not always easy to find out the best amongst the huge list of small business credit cards on offer.  Most credit card companies try to attract businesses with different features like discounts on services and office supplies, rewards, free memberships to clubs, travel services etc.  As a small business owner you should be looking for features that you are going to use and value most in long run.

Credit Cards for New Small Business – Things to look for

1. Annual Percentage Rate – First and foremost consideration for choosing a credit card should be the amount of interest that you will be effectively paying.

2. Annual Fee – Some credit cards warrant an annual fee.  While you can easily get a credit without an annual fee, sometimes it is good to look for features that come with an annual fee.

3. Fraud Protection – Credit cards are vulnerable to fraudulent use.  Look for the protection that the card offers and your liability in case of unauthorized use of card.

4. Purchase Security – Since a business credit card is often used to buy small fixed assets for office, don’t forget to check if your purchases are covered for theft or damage by the credit card.

5. Card Replacement – Check for the time it takes for getting a new card in case of theft or loss of card.

6. Emergency Funds – Find out if there is a way to get emergency cash, if needed, in case the card is lost or stolen.

7. Discounts – Credit card companies tie up with local retailers and service providers for special discounts.  See if the places that you often purchase from are covered by the credit card.

8. Rewards – Same as discounts, look for the rewards that the card offers for making purchases.

9. Travel Services – Small business credit cards are often used to but travel tickets and during travel.  Does the credit card provide travel insurance and emergency services while traveling?

10. Bills and Tax Payment – Check if you can pay your utility bills and federal and state taxes using the small business credit card.

Below are some of the credit cards for new small business that you can choose from:

American Express Small Business Credit Cards

• SimplyCash® Business Card from American Express OPEN
• Blue for Business from American Express
• TrueEarnings Business from Costco from American Express
• Starwood Preferred Guest^® Business Credit Card from American Express OPEN
• Platinum Delta SkyMiles Business from American Express

Visa Small Business Credit Cards

• Visa Business Credit Card
• Visa Signature Business Card
• Visa Business Line of Credit

You will be disheartened but the answer is a simple NO!  There are no grants for small businesses that a normal enthusiast would like to start.  OK, so do I want to say that grants for small businesses don’t exist at all.  No, there are grants available for highly specialized businesses.  State and local governments do offer grants but most day-to-day small businesses that you can think of starting will not meet the eligibility criteria.  These grants are generally offered to non-profits, institutions involved in education, training and community benefits, agencies backed by local and state governments etc.  Majority of the grants offered by the government focus on:

• Agriculture
• Business and Commerce
• Community Development
• Consumer Protection
• Arts & Cultural Affairs
• Disaster Prevention and Relief
• Education
• Employment, Labor, and Training
• Energy
• Environment
• Food and Nutrition
• Health
• Housing
• Income Security and Social Services
• Information and Statistics
• Law, Justice, and Legal Services
• Natural Resources Federal Grants
• Regional Development
• Science and Technology
• Transportation

The official government grants website Grants.gov provides a list of available government grants that you can look at and find out if your business fits into that.

Grants Scam

On the Internet, you will often come across sites selling a grants database, information about grants & writing grants proposal etc. or guaranteeing grants award to you for some price that can range from $25-$250.  All these sites are basically created to make money by luring in people into the idea of getting business capital from the government that doesn’t need to paid back even.  All these sites fall under the category of Grants Scam.

Basically, all this information is freely available on the Internet through the official sources so charging for this information does not make sense.  Moreover, no one can guarantee that a grant will certainly be awarded and anyone doing that is making false claims.

You will also come across sites that offer you help in getting money from the stimulus fund for small business signed by President Obama.  Be cautious and never sign up for these services as this will be a complete loss of your money.

Also be cautious about sites that claim to unearth grant scams.  They are actually made by scammers only who want to prove to you that are legitimate business concerns and trying to bring out the truth in front of you by informing you about grant scams.  Most likely they will be promoting a similar service that they will promote as the most credible.

If not grants then what are the options for my small business financing needs?

The best option for you is to look for a loan.  As far as government help is concerned, the government does not lend money to businesses itself.  The help comes in the form of a guarantee that government makes to the lender.  This helps cover the lender’s risk to an extent and increases the chances of loan being given to the applicant.  You can visit the SBA website for more information about their guaranteed loan programs for small business.