Small Business Credit Card Benefits
By Debbie Dragon
Many new small business owners do not have a card account specific to their business. They might use a personal card to make business related purchases every now and then, but the majority of new business owners overlook the value a business card may provide to their business.
There are many reasons why a small business owner would benefit from having a card account specifically reserved for their business use. First, though, let’s discuss the typical reasons why a small business owner would avoid a card!
Top 6 Reasons Small Businesses DON’T Have Cards
1) Business owner is afraid that they will overspend if they have access to a card.
2) Business owner thinks it’s complicated to apply for and receive a card under the business name, or feel they don’t have strong enough to get one.
3) Business owner thinks finance charges and interest rates will be expensive and cost more money than the convenience of having a card is worth.
4) Small businesses don’t make enough purchases to require a card.
5) Business owner likes the control over spending by employees when a check or cash has to be issued for purchases.
6) Business owner applied for one and was denied.
Is the reason your small business doesn’t have a card found on this list? If so, you might be surprised how the benefits of having a card for your business can help propel your business forward.
Credit Card Benefits for the Small Business Owner
While many of the reasons small business owners decide not to get a card for their businesses are valid, there are many advantages to the businesses that do decide to get a card.
When you make all of your business purchases and pay for each expense related to the company on a single card, you have an easier time with your bookkeeping. You can simply refer to your card statement each month, or on a quarterly or annual basis in order to see your purchases and expenses at a glance. You can cut one check each month to pay for all of the purchases, making it much easier to manage your business checking account, also.
Having a company card allows you to get additional cards in key employee names. If your office manager handles the office supply purchases, you can give her a card to make those purchases with, for example. There
is less time required of you to approve or deny his or her orders and no need to cut a check when the manager is ready to place the order. Simply give the employees with cards a spending allowance and you can quickly monitor the spending of each employee by glancing at the card statements.
If you select a card for your business that offers a rewards program, you will benefit further by achieving the rewards under that benefit. As a business owner, you would decide if you have reason to purchase airline tickets, or if you would benefit better from a card with cash back or special merchandise purchases with the points you’ve earned.
Having a business card opens the door to many opportunities for your business that you wouldn’t have if you avoided having a card. Be sure to take these benefits and advantages in consideration when deciding whether or not to apply for a business card. If you fear your business isn’t strong enough for a card at this time, you can opt for a prepaid card or a secured card to build your company history. You’ll still receive all of the benefits and conveniences of a card, you’ll just need to take the extra step of funding a prepaid card before you can use it.
This article is courtesy of Creditorweb.com, where you can compare card offers including business cards.
