These 9 benefits of business credit cards are in fact pointers you should be careful to watch out for when searching for the right business card. The article explains each benefit in detail and hopefully at the end you’d see reason why it’s always a better idea to fund your business with a business credit card no matter how small an establishment it is.
Improves your Reputation
Business Credit Cards especially those that display the company brand on the front end can do a lot to build your company’s reputation. Whether you’re taking a client out to lunch or giving employees their own cards having a business card shows your company in serious and has a reputation to protect.
Build a Solid History
Business and personal cards work in similar fashion. Having a business credit card can go a long way in building a good credit history for your business most especially when the card is used correctly. With a good history, it’ll be easier for your business to obtain further credit and experience future growth.
A business card is more likely to offer additional protective benefits such as employee misuse insurance, travel insurance, purchase warranty and extra levels of identity theft and fraud monitoring. As a business owner these free benefits will work to your advantage in the long run.
Perks and Discounts
Again, the average business card would hook you up with perks and discounts when purchasing from participating merchants and retailers. Details will differ per offer but cards that provide discounts usually grant anywhere from 5% to 25% off on applicable transactions. A good example of such cards is the AMEX line of business cards for small businesses which offers business owners free membership into the AMEX Business Savings Network for discounts of up to 25% with participating retailers.
Set Spending Limits
This feature will help business cardholders set spending limits on employee cards and the parent/basic card. Spending limits help a company stay within budget while restricting potential employee misuse to a certain amount. This is unarguably one of those features to watch for when searching for the right business card.
Access to Higher Credit Lines
Although you might already know this by now, by default, business credit cards will always offer higher credit limits. This might turn out a blessing or curse depending on how judiciously this extra credit is put to use. Actually, a business credit card gives owners room to make larger purchases, expand the business, and keep cash flowing during down periods.
Expense Management Reports
The ability to generate an expense management report online is a life saver for small business accounting. This feature often at no extra cost makes budgeting, expense monitoring and tax planning a lot easier. Expense management reports are usually compatible with advanced accounting software packages like Quicken, and Microsoft Money making it possible to merge these reports into accounting data. They also provide backup access to lost or misplaced receipts should you ever need them.
Free Additional Cards
A business card would offer at least three additional cards for employees at no extra cost. Additional cards will display the name of each cardholder employee thus buttressing the points made in 1.
A business credit card offering travel miles or points on each eligible spend is a great way to save costs on related expenditure. If your business is one that involves frequent travel, you’ll be better off with a credit card that offers travel benefits. Other credit cards give cash back, points for merchandise, gift certificates and periodic freebies or free membership into a members’ only program.
Make Sure You Check
- United States Business Credit Cards
- Australian Business Credit Cards
- Canadian Credit Cards
- United Kingdom Business Credit Cards
If you find one that meets your financial needs apply online with confidence. We value your security.