Credit Cards for Business - Credit card info

More and more businesses are issuing credit cards to their employees for them to use for general expenditure. Having access to this facility provides freedom for the employee, who can use their cards for purchases instead of having to go through the process of claiming back expenses.

Procuring a business credit card account will be harder than applying for a private credit card. Typically, the business will need to have been trading for over a year, and have a relatively high income of over $20,000. The interest rate will be higher than that of a private credit card, and there will also be an annual fee, though many will waive the first year.

Some of the uses that a business credit card can be put to are:

● Expenses – Useful for sundry items such as travel tickets, accommodation or food. The majority of credit cards are accepted worldwide, but there may be a small international transaction fee involved.

● Basic Items – Using a credit card for small consumables like printer cartridges or office supplies can be a convenient way to place orders. Accepted at most online retailers, using a credit card for these types of items is quick and easy. Plus, with most credit cards there will be some form of purchase protection.

● Large Items – Similar to the small items, using a credit card for larger items such as computers or office furniture is convenient and quick way to finance these purchases over the short to mid-term.

Issuing business credit cards to employees will mean that there will no longer be a requirement to hold any petty cash in the office. Most business credit cards will have the same benefits that will be available with standard credit cards such as 0% balance transfers. This includes cash back incentives or specific reward schemes like air miles.

Some of the features that will available with a dedicated business credit card include:

● Tracking and control – with a fully itemised invoice that will show each card on the account separately means keeping track of each employee’s expenditure is much simpler.

● Multiple cards – having a named holder on each card issued provides an easier way to monitor spending.

● Set credit limits – allowing the setting of different credit limits for individual cards to limit the spending of employees.

Issuing business credit cards to employees will have many advantages, none more so than being able to track everyone’s expenditure. There will also be many business credit card accounts that will provide discounts on certain services such as air fares, so it is worth checking the different options before signing up.

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