6 Ways a Business Credit Card Can Help Your Business

Most small to medium sized businesses need to make regular purchases of equipment or have members of their team out on the road and these can all benefit from getting a business credit card.

Business owners often hold back from talking the plunge and arranging business credit cards because they are scared of losing control over the finances of the company and paying high amounts of interest but in actual fact the right card can give you more control and if your accounts team manages things smartly you need never pay any interest. Here are 5 ways your business can win:

Monthly Reports

Business credit cards provide monthly reports that collate all the monthly expenditure from each card-holder and it's presented all on one statement. This is a much more streamlined way of handling expenses for all concerned.

Spending Policies

A business credit card also allows you to place spending policies that need authorization above a certain spend. Whilst you will need to manage these carefully from a HR point of view as well as a financial point of view, it allows you a measure of control that the cards will not be abused.

No Interest

If you arrange a business credit card with an interest-free period of, say 55 days, and your accounts team pays the full balance of the card each month before the interest-free period is up, you need never pay any interest. Again this should allay a business owner's fears of credit cards costing a lot in interest payments, as it needn't be the case at all.

Happier Staff

Your travelling staff won't need to use their own cash for expenses or spend a long time locating receipts and filling out claim forms; your accounts people won’t have to spend time going through those claim forms and to-ing and fro-ing with your sales and engineering staff out on the road; and the office manager won’t have to bother you for the cheque book every time she wants to buy supplies for the office.

Rewards and Perks

Business credit cards can offer some great perks – like free travel insurance and purchase insurance and rewards schemes that are redeemable for travel –related deals or goods at particular retailers.

Credit History

Your business can start to build its own credit history as the card will be in the business name. This can help with future loans, if required.

There are other benefits but these are 6 reasons why an Australian small business might want to consider a business credit card to streamline cash-flows and procedures within the company. More tips can be found at the LowerBills site.

For more information regarding business credit cards, platinum credit cards and credit card applications, please visit: www.lowerbills.com.au