The business credit card market is growing increasingly competitive and there are more perks on offer than ever before, but as with all business opportunities, it’s crucial to put some thought into how you could use these assets to your advantage.
Organise your accounts
Business credit cards can be a valuable tool for accounting, as they allow sole traders and startups to delineate business costs from personal spending. Growing businesses can make the most of supplementary cards and custom billing processes to organise spending by department, or consolidate employee expenses into a single account.
Protect big purchases
Section 75 of the Consumer Credit Act requires credit card providers to protect against the non-delivery of purchases costing between £100 and £30,000 that are not being bought for resale, so it makes sense to make large capital expenditures on your company credit card in order to reduce risks to your finances. Some packages also include insurance policies and extended warranties, or offer special deals for customers.
Earn money by spending
Another advantage of using company credit cards for business expenditures is making the most of cashback deals. Putting systems in place to charge office purchases to the credit card can generate a small but valuable income from your essential expenses.
Fuel your travel costs
Cashback deals aren’t the only way to maximise returns from your credit card, however. Some reward schemes allow you to accrue air miles, which can be particularly valuable if you will need to travel widely while building your business.
Excite and incentivise
Other card reward schemes involve partnerships with companies like Canon or Samsung, which can be used to show appreciation to loyal customers or incentivise employees to move to the next level.
Set up a direct debit
To make sure you reap all the benefits of your credit card and avoid accruing interest, only use your card for payments that will be covered by the end of the month, and set up a direct debit so that you can be confident you will never miss a payment deadline. This way you can enjoy all the benefits of a credit card with no risk.
Make use of services
Some of the services accompanying small business credit cards can be exceptionally useful. American Express UK, for example, provide a Concierge Service with their Platinum Business Card, which can offer invaluable support in organising business trips and client meetings, while extras like comprehensive travel insurance serve to give you greater peace of mind. Make sure you take advantage of everything your business credit card has to offer to help your company flourish.