Tips on Using Business Credit Cards
When you run a business, there are new opportunities available in the credit world that a regular person cannot get. You should take advantage of these perks and use them to better your bottom line.
Here are a few tips to keep in mind when it comes to using business credit cards:
1. Watch for Discounts
Many credit card companies offer discounts to businesses to use their business credit cards at certain locations. For you, this could mean a 10 percent savings at the office supply store you frequent. When you are looking at which business credit cards to sign up for, look for any partnership programs. If you can find a card linked with a store you use regularly, this could mean major savings.
2. Enjoy the rewards
Many of today’s credit card companies offer reward programs. It could be cash back, airline miles, or any of a number of other perks. For business use, these rewards could add up quickly. If you can, put as many expenses as possible on the card to rack up points. Just make sure to pay off the card, as you would have other bills, at the end of the month. That means no interest charged, but many reward points put in your name.
3. Save time doing the books
Using a business credit card for the majority of your business purchases will give you the added bonus of having everyone on one receipt at the end of the month. Instead of going through a stack of bills and payment forms, you can have a line-by-line list of where the money has gone.
4. Take advantage of low interest
Since most businesses are seen as a much safer risk than an individual is, most business credit cards have a much lower interest rate than personal credit cards offer. While you should try to pay off your credit cards every month, if you do need to purchase large capital items for the company, you can take comfort in the fact the interest will not be piling up as quickly.
5. Keep tabs on employee spending
If you are in a field where you must trust your employees with expense accounts, look for a credit card company that offers employee credit cards. By giving each of the employees their own company credit card, you can set limits, to keep their spending in check, and also be able to easily keep up with just where that money is going when the monthly statement arrives.
Business credit cards are not just an easier way to pay, but also can be a very rewarding way to give your company a little more bang for it’s buck, while also keeping a better watch on where those bucks are going.