How Credit Cards Can Help Control Your Business Finances
If you are an owner of a small or medium-based enterprise, you may have probably received several business credit cards offers, applications or loans for Quick Capital Funding. It can help increase your business’ purchasing power.
With a business credit card, you have easy access to the credit you need to expand your business while simultaneously reaping the benefits of rewards, cash back, and other beneficial perks to develop your small business. Business credit cards are today designed for SMEs, sole proprietors, and large businesses. You can keep your business finances separate from your personal finances by using the right combination of business credit cards.
Finances in business are a crucial aspect, and if used responsibly, business credit cards can give potential benefits. Acquiring a business or corporate credit card is an excellent way to simplify daily business expenses and take advantage of the perks like purchase protection and rewards.
Further, it helps enhance your buying experience by tracking your spending and having a strong credit line that uses an online cash management platform. It also offers great cash back and easy cash flow. Here is how a business credit card can help manage your business.
- Help control your company’s spending expenditure
You can manage your business-to-business expenditures like office supplies, furniture, and computer software or hardware using a corporate credit card. They help lower travel costs that employees using cards incur while working for the company.
For many SMEs and large businesses, keeping track of expenses and keeping tabs on spending is difficult. By imposing restrictions on the maximum amount, geographic location of purchases, and frequency made by an employee cardholder, corporate credit cards can be an effective tool for having individual account controls to monitor employee spending.
For instance, RHB Purchasing Card helps manage global and local purchases and spending of your company through customized budgeting and buying controls and data consolidation.
- Simplify cash flow
Cash flow gaps, which happen when expenses are due but client payments have not yet been received, are a problem for small or large business enterprises. You can use a business credit card with an interest-free period to make payments for purchases in advance. Businesses generally can benefit from this if they are strapped for cash because they do not have to pay interest on the working capital they borrowed in the meantime.
For SMEs that routinely have problems with cash flow management, credit cards with extended interest-free periods, say 50 days from the date of the transaction, can be helpful. New businesses can increase their credit score by consistently using their company credit card and making on-time payments every time. Because higher credit scores can result in a cheaper interest rate, it will make it easy to secure other forms of business credit, such as loans, and may cut down long-term financing costs.
- Utilize rewards
You can use rewards points from business credit cards to meet several Adhoc expenses like air travel, entertainment, and hotel accommodation. Some corporate credit cards offer cash back for local and overseas business retail expenses like office supplies, equipment, etc.
Typically, a business card offers up to 30 days of float to assist you in paying for the products you purchase using the card. Some cards go a step further by offering flexible payment choices to help you increase your cash flow.
- Have financial analysis with consolidated data
You can easily ascertain whether spending is staying within budget and whether the staff is adhering to purchase procedures by having access to the most recent card transaction data. For instance, creating a consolidated view of expense heads, like office supplies, is a simple process that aids in displaying the amount of money the business spends with each seller. With such knowledge, you can think about cost-effective procurement strategies, like negotiating a contract with a preferred supplier.
To conclude, you can look for the best business credit card offers with the benefits explained to help control your business expenses while fulfilling your credit needs.
