If you run a business and you don’t have a business credit card or charge card then you could be missing out on a huge range of benefits. No matter what size your business, business credit cards and charge cards are specifically designed to benefit business owners and help make the financial side of things run much more smoothly.
Why Use a Business Credit Card?
Business credit cards have a range of features that you won’t find on standard credit cards. Some of the most useful features include GST compliant statements, easy-to-track expenses and improvements to cash flow. By having a business credit card you also help build up a good credit history for your business which can help ensure future growth. Additionally, business credit cards add an element of legitimacy to your company, particularly if you are taking clients out.
Unlike with personal credit cards, business credit cards allow you to get several cards (often for free) so that your employees can each have one. You can also set specific limits for individual employees and as they are all linked to the same account it makes tracking spending simple.
Business credit cards have higher spending limits than standard credit cards, which is essential when making large purchases such as overseas travel and accommodation. If all of that hasn’t given you enough reasons to sign up for a business credit card, then you may be interested in the rewards that they can offer. Many business credit cards give you rewards for spending and the dollar to point ratios are generally very good. Rewards often include travel, accommodation, gym memberships and food vouchers.
Charge Card vs. Business Credit Card
If you want the benefits of a business credit card without the extra costs involved – then you may wish to consider a charge card. Charge cards give you access to all the benefits of a credit card without the cost of interest, however it must be paid off in full at the end of every month.
One of the key benefits of a charge card is that you don’t run the risk of debt accumulation. As with personal credit cards, it can be incredibly tempting just to roll over your bills until the following month which can turn out to be very costly in the long run. With a charge card you don’t have an option to roll over bills to the next month. Charge cards have no preset spending limit; instead the limit adjusts depending on how often you use your card, your payment history in conjunction with other financial factors. This means that your spending limit increases as your business grows.
Many charge cards have incentive programs so you can earn points and rewards for simply paying every day business expenses. Charge card rewards programs are often much more generous than business credit cards. Like business credit cards, charge cards allow you to easily track and organize detailed expense reports making doing your finances less of a headache when it comes to tax returns.
Use Click4Credit’s credit card comparison tool to find the best business credit card for you today!
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