Most businesses, large and small, can benefit from opening credit card accounts for their staff. The biggest benefit is for accounting, because by making purchases through plastic, it’s easy to track expenditure against your monthly statement: no more petty cash to worry about!
But just like a personal credit card, business cards often reward their owners in various ways too.
For example, if you or your staff travel regularly for meetings, training, or other business reasons, consider getting a card that specializes in executive travel. Such credit cards will usually offer a tailor made travel insurance package that’s right for business, along with other perks, like access to executive lounges in airports, deals on car hire, and, of course, travel miles.
Cash back credit cards are also popular for businesses, but choose one that makes sense. Remember, the value of cash back rewards will vary depending on what you buy with them. With a personal credit card, for example, you may get 5% cash back for groceries, and only 1% for other categories. A business credit card, on the other hand, will more likely be used for different types of purchases (travel expenses, office equipment, and so on). Make sure that the card you choose rewards categories that you’ll actually use!
When you’re considering a business credit card, find out if the issuer offers an online shopping mall, or partners with other suppliers that may benefit you. If the goods being offered are of interest to your business (especially regular purchases, like stationery), you could benefit from both convenience and significant discounts!
Most of the precautions you would take when choosing a personal credit card will equally apply to a business card, for example:
- Are there annual fees, and are they worth paying? Sometimes they are, if other factors are favorable.
- If there’s an introductory interest rate (say, 0% APR for the first 6 months), find out the terms attached to that rate. Does it only apply to balance transfers, or new purchases also?
- What are the normal credit card terms, particularly APR, once any introductory offers have passed?
Other, business specific factors may also be worth investigating. Especially interesting is the option to get additional cards for your staff, particularly with no annual fee. Make sure you can set spending limits on each card according to your company’s needs.
In summary, most businesses work more efficiently with the right credit cards. Just make sure to ask yourself what benefit any prospective card will bring to the table. A wonderful personal credit card may not be such a good fit for business, but so long as you’re aware of that fact, you’re sure to choose an option that will work well for you and your company!
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