Credit card companies are increasingly competing for the attention of small business owners.
In fact, American Express recently noted the opportunity for growth in the small business sector in its Q1 2024 earnings report. Innovative new solutions like Fyle are entering the market and partnering with credit card companies to tailor the experience specifically for small business users.
There are a few reasons why small businesses are an attractive target for credit card companies in 2024. First of all, there isn’t as much saturation in the small business market as there is in the consumer market. And there are record numbers of new businesses starting each year.
Tony DeSanctis, senior director Cornerstone Advisors, a business consulting company, recently told Marketplace, “Everybody who wants a credit card from a consumer perspective, probably has one, or maybe four. In the small business space, less than half of small businesses are actually using credit cards on a regular basis.”
In addition, the average small business customer tends to spend more than the average consumer. That ultimately means more money for credit card companies per customer, even when you factor in the rewards they may offer to business customers.
The good news for small businesses is that this increase in competition may ultimately lead to better perks for those looking for new cards. You may be able to find better rates, incentives, or rewards from credit card companies looking to earn your business. Since business owners can put nearly all their expenses on these cards, those rewards and improved rates can really make a difference.
It’s still important to do your research and select providers that ultimately suit your needs rather than getting sucked in by short-term promotions. However, the ability to build credit with a solid rate and extra perks may be beneficial for many businesses, no matter if you’re just starting out or are already established.
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