There are many advantages to business credit cards. They provide readily available cash supplies, monthly statements that serve as a means to monitor and analyze expenditure transactions and cut down on accounting procedures.
These cards are not just suitable for large-scale companies, they are appropriate for small and mid-sized businesses as well. Business credit cards are a fundamental tool for all types of ventures. There are companies that could not operate without business credit cards.
For a small business owner, a business credit card creates a professional sense of establishment and trustworthiness. This reassures company employees, vendors and owners.
Bonus Features
Business credit cards are offered by a myriad of financial institutions. Most of these lenders have competitive interest rates and terms to attract customers. A trend among lenders is to offer additional bonus rewards. These rewards, if chosen carefully, can benefit the astute business owner in operation of his or her company.
Research business credit cards that offer zero annual percentage rate (APR) for the first six months or year. This can be significant for the small business owner. Another important feature is the CashBank Bonus. You may qualify for five to 20 percent cash back depending on the amount of purchases made. Another component well worth comparing is the annual fees charged by lenders. These can vary widely.
For a business that involves travel, air travel points earned on purchases made can be helpful in reducing travel expenses.
If your business has employees, liability protection is a benefit that bears investigation. As is cash rewards made for purchases by multiple card holders on the account. Be sure to examine the terms associated with additional card holders.
Credit card personalization, a process where information specific to each cardholder is loaded onto the card, is a feature that might be of interest.
If you have an interest-bearing credit card with a balance, research credit card companies that will accept transfer of the balance to a low interest or 0% APR credit card.
Small Business Benefits
Thorough investigation of features and rewards associated with credit cards will benefit the small business owner. Choosing a card with the features and rewards suited for your type of business can enhance your company’s financial bottom line.
Businesses with small budgets can find it difficult to have a continuous cash flow. Business credit cards can assist with this, especially in emergency situations. Unexpected cash flow crunches, such as a large order from a customer and a shortage of funds to manufacture the product, can be alleviated by use of a credit card.
Credit cards give the ability to charge expenses and pay for them at a later date. For instance, if you require materials for a client’s order and pay for them with a credit card, the customer will have paid your invoice before the credit card payment is due. This allows you to extend your money over a period of time rather than having to have cash up front.
Your monthly credit card statements allow you to monitor your business expenses. The statement is a convenient method of tracking expenses. You will know at a glance if your expenditures are in line with your business budget or need to be decreased.