Many company owners have business credit cards, but out of the people who do, not many actually get the most out of them. Many people see business credit cards as a normal credit card for business people, but in fact they are much more than that. There are many rewards and benefits that people fail take into account and make use of. In this article I will try and detail how you can use your business credit card to its full potential.
Keep your business card separate from your personal cards
This may be the simplest tip I can give you, but many people use their business card for their own personal use. The reason I would advise people to use their card for business use only, is that at the end of the month when your monthly statement arrives, you can see exactly how much you have spent without any need for any calculations. Doing this makes it easier and quicker for you to monitor your expenses and keep track of your finances.
Why did you choose your business card?
Ask yourself why you chose your business card, many people simply choose their card without looking at other alternative card providers. You should see what rewards your type of business card carries and then check against others. If you feel you are not getting the best deal don’t be afraid to change provider. Many providers offer discounts on purchases of supplies when using your card, others include various insurance and travel rewards, it all depends what you need your card to do for you.
Use your card to build employee trust
Many business owners may be reluctant to let their employees use the company card for business use, however allowing the employees to do so can build up an element of trust. Company owners who are worried about their employees misusing their business credit card should ensure they are fully protected before they do so. Many business credit card providers include an “employee misuse policy”, which protects the company against any unauthorised use of company funds.
Using your business credit card
Many people have business credit cards, but they don’t actually use them to their advantage. Actually using your card on a regular basis helps build up your business credit rating. It’s important to note that your business credit rating doesn’t impact your personal credit rating; this is kept totally separate and is one of the main reasons why people chose a business credit card.
If you do use your business credit card on a regular basis make sure you don’t just pay the minimum payment, keeping on top of your payments by viewing your regular monthly statements may be the most obvious advice I can give you but it is also the most important.
Building up your business credit will help build your companies reputation. As well as building your company’s reputation you will also be able to demonstrate your business growth. Being able to see how your company has developed will make your company more credible and dependable to possible suppliers and investors.
Business credit cards do tend to hold higher spending limits than normal credit cards. The higher spending limits allow you more flexibility when buying for your company needs. I wouldn’t however advise using the bulk of your cards spending limit just for the sake of it but if you have the need to use it, it is there for you to make the most of.
This article was written by Andreas Nicolaides, a money and finance expert for MoneySupermarket.com