Whether you have been running a business for a few years or simply began a start-up, you might have considered getting business bank cards. Credit cards for your small business might be an incredible method to make certain your employees have access to funds after they need them.
around 67% of corporations are already having fun with the advantages of a company bank card, and that number is growing with more favorable terms offered by bank card corporations. Capital on tap is a fast-growing business loan provider, providing small and medium-sized businesses with access to capital.
The advantages of business bank cards transcend mere flexible access to credit. Credit cards also offer opportunities to extend your credit rating, rewards, payment protection and more.
In this text, we’ll discuss the foremost explanation why it’s best to provide your employees with corporate bank cards.
What is a business bank card?
A business bank card is a useful tool for nearly every business. Business bank cards might be similar to private bank cards in that they permit users to access credit as much as an agreed limit. Business bank cards may carry higher rates of interest than personal bank cards, although you’ll be able to get other advantages with them.
Why should you could have a business bank card?
Business bank cards might be very helpful in allowing you and your employees to access funds when needed. This might be vital during times of low money flow or when it is just more convenient to make use of a bank card than to handle money payments. Our top five advantages for work bank cards include the next.
1. Separate business and private expenses
Having a bank card for business purposes is an incredible method to separate your various expenses and value centers. This makes it easier for you and your employees to maintain track of how much they’ve spent on work-related items in comparison with their very own personal expenses and even different areas of activity. It’s also convenient because you will not need to reimburse employees for the cash they spend on business. This can save time and eliminate the necessity for extra documentation.
2. Cash flow tracking
Using a bank card will help keep all of your bills and expense information in a single place. This makes it much easier to maintain track of what you are spending and on. Having all this information in a single place makes it way more convenient to keep watch over your funds in addition to note changes in your spending. This means you’ll be able to easily see in case your expenses suddenly increase.
“It’s vital to maintain track of where your money goes, especially when you use a couple of bank card. Modern bank cards offer a wide range of expense management tools that can help you see at a look the different sorts of expenses your small business spends. This makes it easy to see where cuts might be made or where more budget must be allocated.”
– Damian Brychcy, COO and American managing director of Capital On Tap
3. Building credit for the corporate
Like individuals, corporations should strive to construct their very own loan rating. Your company’s credit rating shows how well your organization is paying off its debts. Increasing your organization’s credit rating will make lenders more prone to offer more lines of credit at lower rates of interest or lower fees. The use of bank cards by employees and the immediate payment of the balance will improve the credit rating of your organization. It is very important how nearly half of consumers feel their credit rating is just too low and doesn’t reflect their credit habits.
4. Cashback and other advantages
There is a big selection of advantages that bank card corporations offer to draw or retain customers. Cashback, airline miles and various loyalty points rewards can profit your small business by providing you with something back each time your small business must make a purchase order. If you have already got to spend that cash on some item for your small business, it’s price getting whatever perks you’ll be able to.
5. Purchase Protection
Credit cards often offer significantly better terms payment protection in comparison with other payment methods. This will help if, for instance, it’s essential to book flights to go to a possible customer, however the flight is cancelled. Having payment protection in place will help protect your small business from a financial blow if something goes unsuitable.
Other Benefits of Corporate Credit Cards for Employees
There are other reasons to offer corporate bank cards to your employees, resembling:
- You can find higher rates of interest and deals than some business loans
- Some cards can mechanically categorize payments so you’ll be able to see where your organization’s money goes
- Getting a business bank card might be easier in comparison with a business loan
- It is usually a flexible payment option that’s accepted almost in every single place
- There are sometimes easy options to scale back worker expenses if the necessity arises
- This might be more convenient on your employees than having to hold money.
How do I make certain my employees use their bank cards accurately?
If you are fearful about how your employees might use corporate bank cards, this is not an unusual problem. However, you’ll be able to easily establish rules together with your employees about after they can and can’t use the cards. Some corporate bank cards also can help you place limits on how much you’ll be able to spend in a single interaction, which might make it easier to avoid large, accidental overdrafts.
Is it hard to get a business bank card?
No, getting a business bank card just isn’t difficult. In fact, it might be easier to get a bank card than a business loan. However, some bank card corporations can have criteria that should be considered before they consider your bank card application. For example, chances are you’ll must have a certain length of trading history or meet a minimum amount of monthly income.
Is it higher to offer employees credit or debit cards?
The typical approach of corporations is to offer employees bank cards for any work-related expenses they might must cover. This is normally because bank cards have higher payment protection than debit cards. Credit cards are also more prone to offer advantages resembling cashback, airline miles or points.
“Debit cards, reimbursement or small money are not any longer a method to spend business. With bank cards, businesses can spread their expenses and gain capital that they might not find a way to acquire with bank loans. Combined with the safety aspect, bank cards are a useful tool for corporations and employees.”
– David Luck, co-founder and CEO of Capital on Tap
Business bank cards for workers: a summary
If you run a business, providing employees with bank cards might be extremely helpful. Using bank cards can make it easier to keep your small business payments in a single place and may make it easier to trace your expenses. When you employ a business bank card, it’s also possible to benefit from payment and rewards protection, plus you should use this card to start out constructing your small business’s credit standing, making it more eligible for future loans or lines of credit on attractive terms.
