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Doing Business with Business Credit Cards |
Putting your business onto a business credit
card system is certainly a good way to do business better. This
could apply whether you have one employee, or a hundred. Here are a
number of reasons why your business can profit by using business
credit cards.
Makes Accounting Easier
If you have
ever had a problem with employees losing receipts (or maybe you have
done it), or forgetting to hand in the receipts until a month or two
later, then you can certainly appreciate the ease that business
credit cards can give you. This system would enable you to not have
to fool around with either needing to have cash on hand, or, of
needing to have more than one signature on a check each time you
need one. Another great element of using business credit cards is
that it saves time and expense on check writing. This way you only
need to write one check.
Most business credit card
companies will give you the option of putting it all on one monthly
statement - if you want it. This shows your accounting department
every penny spent through credit card purchases, and single reports
enable them to easily verify spending limits, as well as being able
to accurately keep the books up to date. Online access to your
business credit card account lets you know what transpires on an
almost daily basis.
Give Employees A Credit Card
Once again, the purpose here is to make it easier on all concerned.
If you have a number of employees that need to travel on a regular
or semi-regular basis, then here is a good way to make it easier to
keep track of their expenses. Or, you may have employees that are in
charge of purchasing items for specific departments - this would
sure make it simpler. Each key employee could be given a business
credit card of their own for the company, and you could place set
limits on individual cards allowing you to have a degree of
protection for the company.
One thing that you may need to
be aware of though is that the credit level of each person being
issued a card will have a credit check made. This could have a
negative effect on the interest rates of the card if one or more
people that are to receive the business credit cards have low credit
ratings. The way to avoid this is to only give cards to those with
good ratings.
Earn Business Rewards
If you put all
of your business expenses on one business credit card company, then
you could earn a lot of business rewards. These rewards will usually
come in several forms, including cash back, air miles, free gas,
points, etc., which are redeemable at various merchants and can add
up to thousands of dollars saved each year. You can even get greater
savings by getting your card from a company that is near you - such
as a gas station, or a particular airline in your city.
Compare the Other Options
Apart from the other things
mentioned, you need to consider whether or not you can make balance
transfers, and if there is a charge or not. Many of the credit cards
do permit you to make transfers but find out for how long the
benefit applies - some cards will allow you to enjoy 0% interest for
twelve months or longer. A number of cards will also allow you to
get 0% interest on all purchases for one year, too. Of course, the
best way is just to pay it off with each month's billing, and then
interest never becomes an issue.
One other thing that you
will want to make a note of, and that is to see whether or not there
is an annual fee for the card. Some business credit card companies
may give you 0% interest, but then they will charge you an annual
fee. If you're willing to look around, you can easily find some card
products that can offer up great benefits for your company.
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