This is a guest post by Andreas Nicolaides of MoneySupermarket.com.
Never used a business credit card before? This article will try and explain the main benefits of why you should. Here are ten reasons why business credit cards can be valuable for you and your company.
1. Keeping track of finances – Business credit cards make it easier for you to keep track of your company’s spending. If you use the business credit card for all your expenses, you will be able to see all your monthly outgoings on your monthly statement, without any need for calculation.
Also, most providers will send you a business expense report at the end of the month, allowing you to monitor payments quickly and easily.
2. Business credit doesn’t affect your own – When you use a business credit card, your business credit stands on its own. Your business transactions will not have an impact on your personal credit rating.
3. Positive credit for your business – It’s important to build a positive credit history for your business. This will help gain your company a higher level of trust, especially among lenders.
4. Demonstrate your business growth – Your business credit is a record of how your business grows and develops. This, in turn, can give you more credibility among lenders and potential investors.
5. Rewards – Many business credit cards offer rewards for your spending. If you use your card for most expenses, you end up building up a lot of rewards. Examples of rewards offered include business and supply discounts, as well as many travel and insurance rewards.
6. Good employee relationship – Allowing employees to use your business credit card builds an element of trust between you and your workers. If you’re reluctant to let employees use your card, many providers offer ‘employee misuse insurance,’ which protects you against exploitation of company finances.
7. Control employee spending – Building on my previous point, having a business credit card also allows you to keep and eye on how much employees spend on business purchases.
8. High spending limits – Many business credit cards offer higher spending limits than normal credit cards. This means that you have that flexibility of spending more for your business, if you need to.
9. Be protected – Business credit cards offer extra layers of protection that some other credit cards don’t. Examples include travel accident coverage, identity theft coverage, and various misuse policies.
10. Ease of use – Using a business credit card is a lot more convenient than using check. You can use your credit card online or over the phone, making transactions faster and easier.
Andreas is a financial writer for MoneySupermarket.com, who specialise in providing financial services throughout the UK.