The small business credit card market is a fast-growing market in the financial services sector. If you’re planning to apply for small business credit cards, see how you’re comparing factors to other business credit cardholders:
Corporate credit cards give your business credibility and legitimacy.
This is an intangible advantage, but if a credit card company approves a business credit card for your small business, it gives other buyers a signal that your business is doing well, good credit. A corporate credit card is a reliable imprimatur.
For small business start-ups, such as someone with dirty records, a corporate credit card may be able to build or renew credit history. By ensuring that this credit history remains consistently positive, you can create a basis for securing a business loan or line of credit if you decide to expand your business in the future. Your business credit card is currently your guaranteed credit limit.
2. Monthly business expenses are easier to track with a business credit card.
A monthly business credit card account can help you get back the purchases you make for your business.
3. The usefulness of a business credit card statement is not limited to tracking business expenses.
It can also be used as reliable – and acceptable – alternative documentary evidence in preparing your books and financial reports for income tax purposes.
4. Corporate credit cards and personal credit cards have the same benefits and rewards.
If you have a business credit card, you have a unique opportunity to take advantage of discounts, cash back and loyalty points when buying goods and services needed for your business.
5. If you have issued business credit cards to your employees,
They can shop for your business without having to pay their own funds or use business credit cards on business trips. Their use of business credit cards makes it easier to calculate expenses. · If you charge for purchases with business credit cards, there is a possibility to take advantage of cash discounts. Companies that supply business-to-business products often offer multiple discounts if the purchase is paid in full at the time of purchase. When buying on credit, discounts are smaller and calibrated according to the financing period. Payments on your business credit cards are always considered cash purchases because your business credit card issuer will arrange for them to be paid out shortly thereafter.
6. Purchases made with your business credit cards may be eligible for special insurance from the credit card company.
If something goes wrong with the item you purchased with your business credit card and the merchant is not willing to refund you, the amount will be covered by insurance.
7. There is a legitimate concern about high corporate credit card interest rates.
Suffice it to say that it is much lower than the rates for a purchase loan. If you use the float period effectively, pay your balance in full every month, you will definitely avoid paying interest. If you plan to carry the balance, make sure you find a business credit card with a lower interest rate.
8. Corporate rewards credit cards can provide great travel benefits.
In short, from a business standpoint, it makes sense to have one or two business credit cards available.