U.S. Bank has introduced a Visa-backed credit card designed for small business owners.
The U.S. Bank Business Shield Visa Card, announced Monday (Feb. 2) in a news release provided to PYMNTS. , is aimed at helping small businesses handle fluctuations in their resources and financing.
“The Business Shield Visa card is designed to help business owners navigate the unpredictable financial and resource challenges that come with running a small business,” Anthony Merola, the bank’s head of bank brand and small business cards, said in the release.
“Featuring an industry-leading 0% extended introductory APR on purchases and balance transfers, and access to Spend Management, our expense management platform, this card is a transformative solution for both new and seasoned business owners looking to safeguard their business from the unexpected.”
With the spend management platform, business owners can reduce costs and manual work, while also saving time through card controls, “integrated accounting,” and “intuitive receipt capture,” the release added.
It also includes purchase protection items which are later stolen or damaged, as well as rewards on prepaid travel.
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The launch of the card comes at a time when small businesses are “sending lenders the message that credit is broadly within reach,” which means that “the real fight is over flexibility and control,” as PYMNTS wrote last month.
This was the key theme of the PYMNTS Intelligence report “SMB Growth Monitor: Small Businesses, Big Credit Needs,” which found that many small and medium-sized businesses (SMBs) are confident about getting approved for new credit.
This moves the market away from basic access and toward product design, pricing and features that are in line with how businesses are spending.
According to the research from the report, 83% of SMBs are confident they would get approved for a new business credit card. It also showed that business credit cards are used for planned spending, as 53% of business credit card use is primarily or almost always planned, which signals these cards are often viewed as a day-to-day operating tool instead of a last resort.
“The report showed that SMBs want credit products that fit uneven cash flow and delegated spending across teams,” PYMNTS wrote. “It highlighted demand for options such as payment due dates aligned to cash flow or receivables, virtual card numbers for specific purchases and customizable spending limits by employee or department.”
