No matter the size of your company, be it large or small, you may still benefit
from owning a business credit card. This article presents 10 reasons why having
a credit card that is specificly designed for business is a beneficial decision
for you, your company, and its employees.
1. Adds an air of legitimacy
Owning a
business credit card will bring a level of respect to your company.
Whether you
are taking a client out on a business related outing, or just making a general purchase,
paying with a business card shows people that your company is a legitimate business.
In order to get a company credit card, the business must be well established, and
this shows that your company has a level of respect associated with it.
2. Builds
a positive credit history
Just like in your personal life, it is a necessity to
build good credit for your business to ensure its future growth. Through the proper
use of a company card you will establish a good credit history. This will help your
business as you move forward, and look to expand your business in the future.
3.
Better perks and discounts
Most business cards offer better perks and discounts
for their users than similar cards that are not specifically designed for business
owners. Business cardholders receive special rates on gym memberships, cell phone
plans and devices, office supplies and equipment, rental cars, hotel stays and airfare
to name only a few. These discounts are a great way for you to save money when you
are making normal business purchases.
4. Earn rewards
There are business rewards
cards currently available that allow cardholders to earn rewards when making purchases.
Some of the reward categories that business cardholders can participate in are airline,
hotel, gas, restaurant, and cash back.
These rewards are earned when the cardholder
makes purchases with their business card. Points or miles can then be redeemed towards
discounts on future purchases.
5. Extra protection
Business credit cards offer higher
levels of protection for their users to help reduce the risk of problems that may
arise. Some of the protection features available to users are traveler’s insurance,
lost luggage insurance, auto rental insurance, as well as extra layers of identity
theft monitoring. These additional features are a great way to protect you and your
employees.
6. Higher spending limits
Business cards offer a higher spending limit
than a standard credit card.
This allows companies to make larger purchases and
gives business owners more room to carry a balance on the card.
7. Employee and
company spending limits
Business cardholders are able to set spending limits for
the entire company, as well as for each individual employee. This is a great way
to help you and your employees stay within a set budget. This allows business cardholders
to control the companies spending habits.
8. Additional cards for free
Business
cardholders will find it easy to receive additional cards for their employees and
other potential cardholders within the business, all of which will display the names
of each additional cardholder. Most card issuers will charge cardholders a fee for
additional cards, but with a business credit card account you will receive additional
cards at no extra charge.
9. Eliminate need for cash and checks
A major advantage
of owning a business credit card is that it eliminates the need for cash and checks.
Consider the advantages of this in situations such as business related travel. Business
cardholders no longer have to give their employees cash advances, or take the time
to add up receipts when they return from business travel to reimburse them for expenses.
Instead, business cardholders can use a company card for their expenses, and all
of their spending becomes far easier to track.
10. Expense reporting
Another fantastic
reason for owning a company card is the advanced expense reporting that is offered
by the issuers. The credit card companies now offer expense reporting that is compatible
with Quicken and Microsoft Money, which allows cardholders the ability to directly
tie these reports in with their accounting data. This feature may be especially
useful to cardholders during tax season, as it will give those that take advantage
of the service exact amounts of their spending and provide useful backups for any
receipts that may have been lost or misplaced.
Now that you see all of the advantages
of owning business credit cards, don’t you think it is time for you to go out and
apply for one today?