You may have heard both horror and success stories about credit cards. If you own a business, you understandably don’t want to risk it. However, there are actually benefits that you can reap with a card, particularly when it is used correctly. Whether you have an existing company or you wish to fund your startup with plastic, there is a variety of reasons for getting a credit card for business.
Below are some reasons why you should get a card for your business:
Simpler Application Process
Applications for business credit cards have fewer requirements. Thus, it would be much easier for you to get a card for business. You basically don’t have to go through hassles, plus it allows you to start building your business’ credit history once you get approved for it.
High Purchasing Power
Business credit cards have excellent purchasing power. Once you qualify for one, you can then use it for purchasing the needed materials and supplies for your business. With these cards, you may also be able to get the right tools to help improve efficiency and yield.
Ability to Redraw Funds
When you have made repayments, your card issuer may allow you to start redrawing money from your card without fees. This could help you increase your cash flow.
Ability to Track Expenses
This is highly important for any businessman. Sometimes, it is difficult to maintain records on your expenses, which is why a bookkeeper may be needed. If you charge your purchases on your card though, you can keep track of all your expenditures. Hence, reporting your taxes and obtaining financial records are much simpler.
Access to Online Updates
Most cards today allow online access to accounts. Having access to your accounts online allows you to keep track of your spending information easily. It even allows you to watch out for identity theft and fraud.
Higher Spending Limits
In contrast with traditional cards, you can get a much higher credit limit with a business card. There are even some that don’t have restrictions on the amount you can spend each billing cycle. This is important to businesses, especially when there’s a need to purchase an expensive office supply or equipment.
Ability to Get Employee Cards
You can sign up your employees for a card so they can have their own. Employee cards are actually an extension of your own account; thus, you have the authority to set their spending limits and monitor their expenses. Employee cards are useful mainly if you aim to build business credit faster.
Cards give you better and stronger protection against all types of issues associated with purchases. Travel insurance, anti-fraud, and car rental insurance are just some of the protection you can automatically gain with a credit card.
More Perks and Benefits
With your card, you can enjoy exclusive concierge services, airport lounge access, and a lot more. You can also rack up on miles and get cash rebates and discounts with just one card.
There are many types of credit cards for businesses, but a rewards card is probably the most renowned. It comes with huge prizes and incentives that only cardholders can obtain. If you travel a lot, you should get a business travel rewards card. Be wary, though, as this may have an annual fee and huge interest rate. As with a regular card, a business credit card should be paid off in full each month to take full advantage of the rewards and not incur debt.