When it comes to business expenses, company credit cards are the easiest and the most secure solution. They do away with the need for complicated procurement procedures and tools and check processing and ACH (Automatic clearing house) payments. By shifting cheque payments to cards, you can get more control over your working capital and enhance your cash management position. Further, you have chances to earn cash back on your spending through rewards or rebates.
You may have received several credit card applications, and your choice of a business card depends on the benefits it gives. Small company credit cards give owners good access to a revolving line of credit with a defined credit limit for making purchases and withdrawing cash.
A business credit card is a quick and easy way to get finance for short-term needs and increase your business’s purchasing power. Such a card is pitched as a more appealing alternative to a regular line of credit.
Getting a corporate or business credit card is an excellent method to manage day-to-day business spending while reaping additional benefits such as points and payment protection. There are numerous reasons for using business credit cards.
- Free up cash flow
Small business credit cards offer a line of credit that can be used to buy anything your company needs, from supplies to equipment. Perhaps, you may not have enough cash to make these purchases if you do not have a credit card. As a business owner, you need to spend money to make money, which may not be easy to do without a credit card. The line of credit can boost your cash flow by allowing you to buy things that will assist you in fulfilling business orders.
Some credit cards also provide interest-free financing, allowing you to pay for goods over a period without paying interest. For instance, RHB credit cards – Corporate Card and Purchasing Card – help your business free-up cash flow with no charges up to 50 days from the date of the first transaction.
- Help earn rewards
The business credit cards feature reward schemes that allow you to earn reward points, cash back, or fly miles. All items purchased on your business card account receive points. You can redeem the reward points for gift cards, goods, statement credits, and travel. The RHB Corporate Card offers ‘Unlimited cash back on your business retail spend, whether it is local or overseas. However, it does not include cash advances, FPX transactions, petrol expenses, and charity.
- Tracks business expenses
Keeping good control of business spending is critical for small and medium-sized firms (SMEs) with thin profit margins. Managing expenses can consume significant amounts of time, which you can better spend on developing your business. Charge cards and business credit cards can help SMEs effectively manage their expenses while reducing administrative time and costs.
Some businesses may prefer to use multiple cards for different types of spending. For example, your business may want to use an RHB Purchasing Card for procurement of equipment or raw materials, for it offers a charge-free period that helps free-up cash flow, but use another card to pay for travel expenses that offers air miles or cash back. It may complicate expense tracking. By using an app like RHB Reflex, you can have statements of multiple cards together to manage those expenses.
- Annual fee waived
You do not have to pay any annual fee for the first year. Get your credit card applications filled out today to have control of your business expenses.
With a credit card, you will have the cash and flexibility to spend on revenue-generating activities such as stock and raw material purchases, as well as advertising. Credit allows you to buy the time you need to help your business expand.