Even as credit cards for businesses are being criticized by some experts, a larger number of lenders are sweetening offers for opening this type of account.
Several major U.S. credit card lenders have recently launched credit cards for businesses that grant users rewards points for every dollar they spend on the card or other benefits in hopes of enticing more small companies into opening accounts, according to a report from Entrepreneur. For example, both American Express and Capital One Financial have recently begun rolling out these cards.
Capital One has introduced two such cards since the beginning of July, one of which offers cash back and the other which allows for users to lower their interest rate based on their business’ location, the report said. Meanwhile, AmEx’s new account will grant cash back on spending of up to $100,000 per year.
However, some have said that business credit cards are risky for small companies because they are not protected by the same safeguards as consumer accounts, meaning the terms of these agreements can still change without notice.