by Ben Cole Sep 01, 2021Share On:
The business world has taken a very drastic turn with innovations springing up in every aspect of business activities. Now it is possible to transact business with the web via the opportunities of e-commerce without physically collecting cash from the customers.
E-commerce comes with a whole lot of benefits that are too enticing to be ignored; it opens up your business to many opportunities and further reaches your regular physical business, businesses are done without limits or boundaries and so much more. You can post goods online, advertise and connect with buyers without much ado.
With e-commerce comes the need for business owners to have business credit cards that will serve the purpose of footing the bills of the business. With a business credit card, it is very easy to pay for expenses at the early start of the business and as the business progress; you begin to experience more benefits that accrue to a business when credit cards are used.
Are you still running your business without credit cards? Do you still make purchases and pay bills with the use of cash exchange? Do you feel a credit card will cause more harm than good to your business? Or you just do not accept this new method of payment? The truth is that having a credit card for your business will bring better than how to your business growth and finance. How? The benefits of using a business credit will be discussed under the following headings.
Benefits of using a business credit card
Usually, when you run a business without a credit card you tend to utilize your personal account for the running of the business. This allows for a lack of proper monitoring of the cash flow into the business neither does it allow for proper accountability.
However, a credit card helps separate your expenditure from the expenses incurred by the business, and that way, there can be proper monitoring of the monies that come in and out of the business with no interference with personal accounts.
The fact that your business account will be separate from your personal account also helps you to develop a good personal credit score that is separate from the credit report of the business. This means that credit approval for funding with the personal account will not be affected by the liabilities incurred by the business. If personal and business are not separated, the personal credit score will be affected by the debts and liabilities of the business.
Credit cards are actually very inexpensive to run as issuers offer really low credit card interest rates. Though these rates could increase that is based on some avoidable reasons.
We have established that business credit cards allow a business to build a strong credit report and that brings the advantage of a good credit score. The advantage of having a good credit score is that you have better chances of accessing loan facilities and having your request granted by banks and other financiers. With the availability of credit facilities for your business, it becomes easy for your business to expand since you will now be able to make large purchases of goods or other items, employ more staff and pay them adequately as well as foot other expansion costs.
Business credit cards engender business accountability on all matters of finances. When a company adopts the use of credit cards, there is the need for the utilization of employees' services and assigning those credit cards for purchases and bill payments. With credit cards, it becomes easier to monitor the monies spent by the employees and keep track of their spending habits. Business owners can now ensure that arbitral spending is not done by any member of staff.
Also, credit cards allow business owners to create automated and customized spending limits for all credit cards; spending on each credit card cannot be more than the set limit. This singular feature allows managers to quickly review the spending done on a particular credit card before serious damage is done.
The flexibility of cash flow within a business is a great necessity for proper business growth and development. The entry and exit of monies within a business allow for purchases to be made at the right time, allow the business owner to foot unexpected expenses and make inventory purchases. Business expenditures are rarely the same every month. This is especially true with companies that deal with seasonal fluctuations. But, most businesses have to deal with some kind of annual payments, such as taxes or insurance premiums. Credit cards are an excellent way to cover expenses that fall outside the norm.
Business credits are aware that a company will spend more on a monthly basis than a regular consumer would and because of this they offer a lot of perks for credit cardholders. Business credit may offer bigger travel rewards, more miles, bigger cash-back percentages, or more attractive signup bonuses.
These perks and rewards are not just abstract benefits with any bearing with what you desire, but they are benefits tailored to meet your business and company needs. For example, some credit cards offer great airfare that will have your business travel needs. This is to say that credit cards rewards come in handy for companies who own credit cards.
We do not need to convince you any further that business credit is the best way to go for your new startup or the expansion of your business. It opens you up to opportunities that your traditional expense method will not open you up to; better credit report, business credit facilities with little or no interests at all, better control over your business and its finances, and so much more.
Your e-commerce company will set itself up for a lot of benefits and rewards if you adopt the use of credit cards for all of your transactions. All you have to do is use the cards often, be timely in payments and plan for every expense.
Get a business credit card today!
Need help in doing this? Then contact us through our care service on this website
Recently, Jim Clyburn, the chairman of the Select Subcommittee on the Coronavirus Crisis, contacted Rohit Chopra via a letter.