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Can your business benefit from a credit card?

Can your business benefit from a credit card?

No matter if your business is a large corporation or a one-stop-shop from home, RateCity uncovers why your business may benefit from having a credit card.

May 14, 2010

Small and large businesses alike can benefit greatly by using credit cards wisely. Whether you are a small business that purchases stock from overseas or if you are tired of reimbursing your staff members hundreds each month; perhaps it’s time for you to compare business credit cards.

Reap the rewards
Business credit cards are available for companies of all sizes to purchase goods and services. They are designed primarily for businesses with a registered Australian Business Number (ABN) and usually offer more advantages than personal credit cards, including tax benefits.

No matter what size your company is, having a credit card on hand will open up a world of advantages that your business previously did not have access to including:

  • Reducing or eliminating the need to reimburse employees as they no longer need to pay for things out of their own pockets. It will also reduce the amount of petty cash required.
  • More effectively manage and control spending and reduce time spent reconciling accounts.
  • Better tracking of expenses as most financial institutions offer itemised expense management reports.
  • Purchase items over the Internet to reduce the time spent travelling to shops to make and sign for purchases.
  • You can have a number of additional cardholders, which is great for corporations with a large number of employees.
  • Ability to set spending restrictions for transactions, the types of purchases and cash advances for all cardholders.
  • Any fraudulent purchases are usually protected under company liability insurance.
  • Some cards offer rewards programs where points can be redeemed for business related travel and merchandise.

More control means more for your bottom line
With today’s economy the way it is and prices of goods and services increasing, the need to tighten corporate spending and reduce outgoings is more prevalent. In order to save money here are some tips that may assist in controlling the use of your company’s credit card:

  • Set a budget on spending limits so all employees who have access to the card are aware of their limit and will not overuse.
  • Put a list together showing what your employees can purchase on the credit card and what they can’t, this might put an end to having to pay for unnecessary expenses.
  • Inform each employee to get their manager’s approval prior to making each purchase, this way you are aware of what is being spent and have more control.
  • Limit the amount of cards you give out to your staff members. Be selective in who will receive their own card to reduce the risk of extra spending.

To save even more, compare online to find a business credit card for that offers a lower interest rate and reduced fees.

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