A business credit card is just like any other piece of plastic, but rather than being issued to an individual, the card is offered to a company.
Credit cards are important for any businesses they can be used as a way of managing both staff spending and cashflow.
In addition, at a time when some businesses are finding it hard to get accepted for loans, business credit cards can even be used to help finance operations on a short term basis.
Once a firm has decided how many business cards to issue to staff, each employee is given a credit limit and the balance can be paid off over time, subject to a minimum repayment each month.
What are the benefits of having a business credit card?
Business credit cards offer a simple and easy way to pay for goods and services, and can prove particularly useful when placing orders over the phone.
Employees who are given cards can pay for work-related items without having to submit an expenses form. You can also monitor individual spending patterns more closely. Providing staff with cards is also a good way to demonstrate you trust them which can help boost staff loyalty and morale.
Used in the right way, business credit cards are also a good way to build your business credit profile.
There are many different types of business credit cards offering various benefits and rates, such as cards with interest-free periods on purchases which can help your firm to manage cashflow, cards which offer reward points or cashback, and cards which offer lower standard rates.
Who can apply for a business credit card?
Any type of company can apply for a business credit card, ranging from a sole trader right up to a limited company.
The higher your business credit score, the better the rate you can get in just the same way as on a standard credit card. In addition, a good credit score can net you additional benefits such as longer interest free periods, reward points or cashback.