Business Credit Cards

What Are the Advantages of Business Credit Cards?

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Running a business is not an easy task. A business owner needs to take care of all activities involved in it. One such activity that plays a major role in business is a cash transaction. Usually, small businesses play for equipment and other services via their checking account.

But as the business grows the cost of running it also increases. In such cases, a business credit card comes in handy. Business credit card advantages are plenty. Read through the article to know about it.

Advantages of business credit card

Benefits of business credit card are as follows:

It helps to segregate between business and personal expenses

The first important business credit card advantage is the separation of expenses. Having a separate business account helps to track business expenses easily. Absence of a separate account makes it tiresome to separate the expenses. Additionally, a business credit card makes sure that your credit score is not affected.

It is very convenient

A business credit card in India makes purchasing very convenient. It is much easier to carry a credit card related to business in your wallet than cash. Apart from this, a credit card can also be used for online purchases. Considering the present economy, cashless transactions are a must. Credit cards enable one to support cashless transactions by doing business transactions.

Also Read: Importance of Having a Travel Credit Card

Business credit cards carry higher credit limit

The next business credit card advantage is a higher limit. In comparison to personal credit, these cards have a higher credit limit. The higher credit limit is an added benefit while making purchases. With this limit, you can make business purchases with ease and not worry about carrying cash.

It provides financial flexibility to the business owners

Cash flow is a constant struggle for people doing business. But a business credit card provides a revolving line of credit. This is especially advantageous when there is slow work, and you need to make expensive purchases. This flexibility that is offered by the cards is very helpful in running a small business effectively.

Perks provided by the business card are not found in personal cards

Apart from higher credit limits, business credit cards in India also offer other advantages. One such advantage offered by such cards is extended billing cycle. It means the cardholders can carry the balance up to 60 days without interest. Also, some credit card companies provide a discount of 1.5 per cent in case the payment is made early.

It carrier rewards

Business credit cards offers reward points for the transaction you make. These rewards come in all categories. It can either be cash-back rewards or travel points. So before you apply for the business credit card, see the company offers the type of rewards. It is recommended to sign –up for such cards that carry rewards beneficial for the company and employees.

It makes it easy to track expenses spent by the employees

The next advantage of business credit cards is employee perks. For a large business to run it effectively, you need to allot some money to employees. Suppose you are into sales a business credit card issued to the salesperson can be used to make payments regarding clients.

Using a separate business card that can be issued to employees makes it easy to track such expenses.

Extended warranty

Certain companies issuing business credit cards provide an extended warranty. Such warranty is always advantageous irrespective of whether you are a business owner or not. Extended warranty on equipment that is purchased through business credit cards offers added protection to them.

Easy business loan

The process of getting a business loan is extensive and long. On the other hand, applying for a business credit card is much simpler. For small and freelance businesses credit cards act as short –term interest-free loans. Applying for business loans requires you to provide some collateral. In the absence of such collateral business credit cards is a good alternative.

Also Read: 8 Things you Must Know About Credit Card Debt

Building a good company credit

It is very important to build good company credit. This can be easily done with the help of a credit card issued for business purposes. The payment history of the company plays an important role in establishing a company’s credit score. A company with a good score credit helps in getting loans at a low-interest rate. It also allows the company to get loans without providing personal guarantees.

Bottom Line

With this, the article on the advantages of business credit cards is concluded. The benefits of using a credit card issued for business is plenty. The list of benefits mentioned above is only a starting point. Financial flexibility and capability are two important requirements for running a business. This can be easily achieved with business credit cards.

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