Business credit cards are a great way for small businesses to operate off an unsecured working capital line whilst at the same time allows you have an itemised expense account without doing all the work yourself. In some cases these cards can be linked to frequent flyer programs allowing you to use points for your next business trip.
Business credit cards operate similar to that of a personal credit card, only that additional card holders can be your employee’s and each can have a dedicated spending limit. As with all credit cards you need to be disciplined and ensure the card is fully paid off at the end of each month.
The benefits of a business credit card are:
- Obtain interest free credit for terms of between 30 and 44 days.
- Allow you to give your employee’s flexibility if they need to deal directly with suppliers or are travelling on business.
- You can have an itemised account for all card holders that you can track monthly.
- There are opportunities particularly for a “Mum and Dad” operation to gain frequent flyer or other awards through ongoing business spending.