Business Credit Cards

Many banks offer a wide selection of business cards – credit, premium, with bonuses and discounts. Let’s figure out what kind of product it is, how and in what cases it can be useful to an entrepreneur.

Features of a business credit card

Credit business card is a card that is based on the ability to use borrowed funds of the bank. Cards of this type have an interest-free or so-called grace period of 50 days or more if you buy goods or services from partners of the bank.

Credit business card allows you to use the funds of the bank without getting a separate loan. This tool is a good solution for small businesses and entrepreneurs who need money for unforeseen business expenses and lack working capital. In addition, the credit card has all the advantages of business cards: you can easily control costs, save on commissions when settling with suppliers, participate in shares of the bank and payment systems.

It is important to remember that the costs of the card should always be economically justified and consistent with the nature of the entrepreneur. All businesses can buy office equipment, furniture and stationery, but if the owner of a clothing store is steadily buying car parts, this may raise questions from tax officials.

What are the advantages of business credit cards?

Money at the right time

Let’s say the sales season has begun or the company won the tender – it’s time to make purchases but there are not enough funds.
With a business credit card you will not miss the opportunity to earn money. These expenses are planned or sudden. The card will help to pay an advance to suppliers in time, purchase urgently needed equipment and even prepare for the holidays – buy corporate gifts to partners. And you do not overpay a penny if you buy goods within the grace period.

Profitable cooperation with partners

Settlements with contractors using a credit business card are carried out without a commission – you do not need to spend time and money on processing payment orders. Owners of credit business cards enjoy offers of bank partners – an extended grace period applies to their services and goods. When paying for partners’ products with a credit business card, you can pay off the purchase debt not in 50 days, but in 60 and more, depending on the increased grace period set by the partner. You can find contractors – from all sectors and across the USA – right on the website of the bank.

A business tool for you and your team

Not only a director but also the employees of the company can use a credit business card. Get several cards for employees and set a limit for them. Using a business credit card, employees, as well as the business owner, will be able to make purchases, pay for representative expenses on business trips, settle accounts with suppliers and withdraw cash at any moment.

Convenient cost control and payments 24/7

It is easy to track expenses on a credit business card oline. Log into your account, increase or decrease the limits on employee cards, follow the dates of mandatory payments and the end of grace periods. And also turn on SMS notifications to control spending in live mode. You can make payments by credit business card, regardless of the operational day of bank branches, at any time.

Reducing the burden on accounting

Paying for goods and services with a credit business card, you reduce the amount of work for an accountant: you do not need to prepare advance reports for any expenses on the card. All operations on a credit business card are displayed in your personal online account, so the accounting reports will not suffer if an employee loses a check. And many Internet services, for example, applications of mobile operators or so-so, send checks to e-mail – you do not have to worry about their safety.

Safe use

A credit business card will allow you not to take large amounts of cash with you on business trips and business meetings because it is unsafe. And if partners do not accept non-cash payments, you can choose the nearest counterparty’s office and withdraw cash there. The most advanced technologies, including 3D-Secure, are used to protect credit business card payments. And in case of loss or theft, the card can be easily blocked online, and no attacker will gain access to the company’s accounts.

Help with force majeure and awkward situations

The credit business card holder is not afraid of equipment breakdowns, urgent office repairs, emergency trips and other urgent expenses. You will not have to pay for small expenses from your own pocket, because “it’s faster”. You are sure that the staff will not violate cash discipline when faced with a non-standard payment, and simply use a card. With a business credit card, you won’t get it wrong if you are late for a flight, forget your wallet for a business dinner, or leave the garage with a half-empty gas tank.

A hotel room reservation will not result in a “freeze” of funds from circulation.

Time saving

Making payments, cash withdrawal for the report, currency exchange take time. And an accountant may be on vacation, the working hours of the bank are over and so on. A business credit card will save you from unnecessary delays, simplify business processes and provide an opportunity to act right now. After all, the more time you save, the faster the business moves forward.

How many credit business cards can I get for a company?

As much as you need for the company! All cards are tied to one account. You can limit access to credit funds on the account by setting spending limits for cashless payments at retail outlets and cash withdrawals – these are the maximum amounts that can be spent. Limit management is available online. To control costs, we recommend connecting to the SMS-informing service, indicating your number to receive SMS about completed operations.

What is needed to get a business credit card?

To get a credit business card, you need to contact the bank office, the client manager will help you fill out an application and tell you what documents you need to provide (this may be: tax reporting, asset documents, licenses / permits for activities, etc.). After getting approval, you must sign a loan agreement and pick up the card.

Category: Online Loans

Tags: credit, credit card, finance, loan