Business Credit Cards
Business Credit Cards
Business Credit Cards
It's vital for any business owner to keep personal and business finances separate. Whether you run a small company or you're at the helm of a large public enterprise, it's essential that you have dedicated financial resources for managing your business expenditure.
Business credit cards help company owners to control business cash flow, keep track of expenditure, and enable payments to be made anywhere in the world. They also reduce the need to carry large amounts of cash or to use cheques, which can significantly reduce the incidence of theft and fraud.
Explore the range of business credit cards offered by South Africa's leading banks to find the one that is best suited to your company's spending requirements. Alternatively, read on to discover more benefits, as well as tips on using a business credit card.
Why should I get a business credit card for my company?
Business credit cards have been designed to offer a convenient and safe payment solution for all company expenses. They effectively separate personal and business expenditure, and consolidate all business payments into a single monthly statement. This gives an instant, clear overview of what has been spent each month, and can also be used for tax and reporting purposes.
Having a business credit card also ensures that you, your business partners or your employees are able to pay for business-related expenses anywhere in South Africa or abroad. They enable business owners to track company spending, pay suppliers promptly and benefit from a range of value-added extras, such as interest-free periods, free travel insurance and loyalty benefits.
The latest chip and PIN technology also ensures that only employees who have been issued with the credit card's PIN number can use the card. This makes it easier than ever to monitor spending, and also virtually eliminates the risk of fraud.
For many company owners, the most appealing benefit of business credit cards is that accommodation, flights and car rentals can be booked (and paid for) within a matter of minutes, and frequent flyer miles can provide significant cost savings. Some business credit cards even offer rewards for frequent spending, making them a far more attractive payment option than cash or cheques.
Tips for using business credit cards
Once you have a business credit card in your company's possession, there are a few steps you can take to ensure that it is used as efficiently as possible:
Get the most out of the interest-free period: By making your purchases during the early part of your card statement cycle, you can avoid paying interest on purchases for as long as possible, often for up to 55 days. This applies as long as you settle your outstanding balance in full before your next payment is due. This could save your business significant amounts of interest each month, particularly if you are used to running your business from an overdraft. More importantly, your cash flow gets a boost, to the extent that you may even be able to get paid by your clients before you need to pay your card balance.
Use payment flexibility to your advantage: If the option is available on your business credit card, use the budget facility to repay larger purchases (for example a new laptop) in instalments to make business expenditure more manageable. Similarly, if you do have the option to revolve your balance, you can make large purchases and repay them on terms that are convenient to you, without complicated loan applications from your bank. Just ensure that you comply with minimum payment criteria, and that you are comfortable with the interest rate!
Apply for supplementary cards for other users: Many banks offer free supplementary business credit cards for another person (such as a business partner or employee), making it easier for them to spend on behalf of the company. This is actually of benefit to you, because you will be able to see what's been spent on your monthly statement, giving you greater control and visibility of your expenditure.
Choose a rewards credit card for your business, and earn valuable rewards for frequent spending, such as frequent flyer miles, discounts or shopping vouchers. These rewards can add directly to your bottomline if they are used to off-set business or travel expenses.
Get the most out of your monthly statements: Look out for a business credit card that offers electronic statements, particularly if they include data files with all your transactions. These data files can be a very powerful tool, because they can usually be imported into software like Microsoft Excel and then further manipulated to provide you with detailed reporting and analysis of your expenditure patterns.
Choose your level of personal exposure: Business credit cards help you to establish your business's credit history. By paying your outstanding balances promptly and in full, your company will earn a good credit reputation, making it easier and cheaper to secure commercial loans. Some banks offer different products to cater for your financial liability needs. In most cases, the business credit card will be issued to your business, and you will be required to submit financial statements and other business-related documentation. However, it might also be possible to get a business credit card issued to you in your personal capacity as the business owner. These cards are generally easier to apply for. Both options have advantages and disadvantages - so make sure you understand the differences!
Applying for a business credit card
Just like with personal credit cards, you can find, compare and sometimes even apply for business credit cards online.
Explore the range of South African business credit cards available, and then apply online for the credit card that best matches your business spending requirements.
The Benefits of Investing in Austin Texas Rental Property Corpus Christi Homes for Sale – Great Attractions that Home Owners and their Guests Can Enjoy in Corpus Christi, Texas what social media optimization can do for your business? Car Shifting Businesses - Guidelines on Obtaining the Very best Types Web Development Company- Enhancing Business Revenues Why Setting Up Setting an Offshore Company Incorporation Is a Sound Business Plan Before You Attract Prospects For Any Home Business, Here Are 4 Tasks You Need To Do First Build Cash by Beginning a Dating Web site Like Plenty of Fish Earn Cash Make Money Online Use SEO Earn Cash Make Money Online Use SEO Part 2 Building Your Business with an opt in list Searching Texas Apartments Online Cash Loans: Raise funds instantly!