Business Credit Cards - An Introduction
Every major credit card company provides business credit cards.
Amex, Visa, Advanta, MasterCard, Chase Manhattan Bank, Citibank,
HSBC Bank, Discover, etc are some of the companies that provide
business credit card products.
Business credit cards are
primarily used to separate business and personal
expenses. Business cards also help
organizations cap employee spending unto pre-specified
limits. They also help organizations optimize benefits for
employees. For example, if a large number of employees shop
at a particular retail store, the organization can negotiate a
group rate discount on purchases made by their employees,
and the benefits can be passed on to all the stakeholders, via
credit cards. The credit card company can also generate itemized
records of spending by all the employees, which can ease the
tracking of employee spending.
Business credit cards also help extend the cash flow of small
businesses that have fixed billing cycles and payout timelines.
You can pay out cash to suppliers, business associates, vendors
etc via credit card instead of using you cash account, and use
the credit card billing cycle to pay the money back, after you
have been repaid.
Flexible credit limits offered by business credit cards
help small businesses ward off significant spikes due to
increase in input costs, expenses towards unseen events, etc.
Business credit cards have two types of credit limits:
- Preset by the credit card company, which carry with no annual
fees
- No-preset credit limit, which carry a small annual fees
With most business card products, you can avail of important
benefits like:
- Points earned on money spent, which you can redeem for other
services like airfare, hotel expenses, restaurants, etc
- No annual fee
- No intro APR for an initial pre-specified period
- Lower APR rates, than usual, after the intro APR period expires
- Balance transfer facility
- Discounts on other facilities offered, when the business card
is co-branded with another service like a phone service
provider, airline, retail store, etc
- Quarterly and annual account summaries
- Lost/Stolen Card Reporting
Business card products also provide you with auxiliary
benefits like:
- A percentage of your business spending given back to you as
cash back, gift certificates, and travel rewards
- Emergency cash disbursement & card replacement
- Hassle free business travel and entertaining for businesses
that require extensive client interaction
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