Establishing a small business can be particularly troublesome because you are invariably not familiar with the process, have to do almost everything by yourself, and there is never enough time and money. Getting the finances together can be troublesome because you can only do so much with personal savings and contributions from family and friends. At a time when banks and other lenders may not be willing to look at startups, small business credit cards can save the situation when used prudently. A quick look at the various benefits of getting a small business credit card:
Finance Business Purchases
With a small business finance credit card, entrepreneurs can buy whatever they require to operate their businesses, right from office supplies, to raw materials and manufacturing equipment. At a time when you may not have the ready cash in your bank account to make essential purchases, these cards offer a line of credit that can sustain the business in its early days when you need to first spend to be able to achieve sales. According to https://us.cnn.com, business credit cards usually offer higher credit limits than personal cards. You can even get cards that will not charge a penny in interest for the first 12 months before switching over to the normal APRs. This can represent a significant saving at a time you’re hard up for cash, observes Eric J Dalius.
Manage Employee Expenses Better
Typically, employees charge their personal cards for business spending. Not only does such practice make it difficult for them to segregate business expenses from personal ones but also makes it easier for businesses to reimburse employees. Even if you have several employees using the business credit cards, you will receive one statement every month with itemized details so that you can track and account for the expenses. You also get more control over business expenses because not only can you set individual spending limits but also freeze any card in case of loss or misuse.
Earning Reward Points Can Save a Lot of Money, Says EJ Dalius
Most business card issuers offer reward programs to their members that have a variety of benefits in the form of cashback, air miles, or points that can be redeemed for cash or kind. Every purchase made on the business card earns reward points that can be redeemed by the business against various business expenses. Typically, small businesses can save a lot of money on the purchase of plane tickets or as cashback that can be set off against the statement dues.
Conclusion
Other benefits of using business credit cards include purchase protection, extended warranty for certain purchases, waiver of fees on foreign transactions, protection against canceled trips, and even car rental insurance waivers, among many others. Some cards even offer coverage against employee theft and damage up to a specific limit. Many of the cards also offer summaries of expenses at quarterly intervals and at the year-end as well as the facility to export the data to accounting software packages or Excel to enable business owners to track and analyze spending patterns.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com