Business Credit Cards
What is a Business Credit Card? What financial benefits can I get from this? What business credit card is right for me?| What is a Business Credit Card? | Top |
A business credit card is designed to be of help to business by providing a number of benefits associated with the day to day running of any business enterprise.
With benefits ranging from improved cash flow and better financial control to travel perks and member reward schemes, there are advantages to be gleaned from a business credit card whatever your company’s circumstances.
| What financial benefits can I get from this? | Top |
Flexible usage
A lot of business credit cards offer very high or even no pre-set spending limits, this allows you to maximise your purchasing power for business supplies or expenses, and providing you clear your outstanding balance every month, you can get up to 56 days interest free credit terms.
A business credit card gives you more flexibility and freedom as opposed to other forms of paying, such as the company cheque book. Business purchases can be made over the telephone or via the internet, and if you travel abroad, a business credit card is usually subject to a preferential rate of exchange.
Standard Accounting Procedures
One of the main benefits of a business credit card is that it can help you to organise your company’s finances. The monthly statement makes it easy to track and identify business expenses, and it is a relatively simple process to integrate it into your company’s accounting procedures.
Additional business credit cards
The majority of business credit card issuers will also issue additional cards for your staff, which eases the process of administrating employee expenses. Each individual cardholder has a set spending limit, and it is also possible to allocate limits on different types of expenditure.
Associated Perks and Benefits
With a business credit card, you can often get the kind of discounts that the big boys get. Dell Computers, Best Western Hotels, FedEx and Ryman office supplies are among a number of companies offering special rates to holders of certain business credit cards. Check with the individual credit card issuers to find out who offers what.
Some business credit cards reward their holders with a points system, whereby points accrued from usage of the card can be exchanged for luxury items such as fine wines etc.
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What card you actually end up with will depend on what you need a business credit card for. If you need a business credit card for easing the cash flow, then you will need to search for a business credit card with the lowest APR. Other charges to watch out for include membership fees and penalty payments. On the other hand, if you are going to pay off the balance every or nearly every month, then you would be best suited with a business credit card that offers a range of rewards and additional services. Make sure that the credit card statement you receive from the business credit card provider is one that fits in with your business’s accounting procedures.
