Reasons Why Your Business Should Use Credit Cards
Many banks offer a wide variety of business cards – credit, premium, bonuses, and discounts.
Various fintech solutions are implemented both by large financial institutions, such as banks, and by highly specialized companies that provide a limited list of fintech development services.
Let’s find out what kind of product this is and how and when it can be useful to an entrepreneur.
Shopping without commission
Let’s start with the fact that the business card for your company is a bank card, which is most often linked to the current account of the individual or legal entity. With its help you can:
Ø pay for purchases on the Internet,
Ø pay your contractors,
Ø withdraw cash from ATM.
A tool for you and your employees
At first glance it may seem that by issuing a business card you will have to pay all your expenses to the person who owns the business. But that is not the case. A business card is a universal tool, which can be used not only by business managers, but also by company employees. You can issue several cards linked to one current account and set an individual limit on each of them. This will equip the cards to employees and greatly accelerate many business processes.
Control your expenses online
Many banks offer their customers an online banking service, which has been went through banking software development. It’s easy to manage your business card in your personal account and monitor the use of funds at any time. You can set limits for cash withdrawal and non-cash transactions for each cardholder and adjust them up or down.
Most business cards on the market have contactless payment technology built in via cell phone and Apple Pay, Google Pay, and Samsung Pay services, so you won’t find yourself in an awkward situation even if you forget to bring your card with you to a business dinner with clients.
Accelerating your accounting workflow
Another benefit is a reduced workload for the accounting department. Transactions are easier to monitor and account for than with cash. Suppose you or your colleague, who has the right to dispose of funds in the company account, paid for a product or service with a business card. In this case, the accountant does not need to prepare an advance report, just get an invoice and sales invoice upon payment.
Accounting for expenses on the business card can be carried out in the same way as in the case of any other expenses. If you are an individual entrepreneur on the USN 6%, patent or UTII, then you do not need to collect closing documents. If the company uses the traditional system with VAT or USN 15%, you must collect the entire package of documents (invoices, receipts, etc.) to be able to account for business card expenses when calculating tax.
Assistance on business trips
The business card is useful for those who go on business trips. With its help you can:
o buy tickets, book a hotel,
o visit a business lounge
o or pay for a dinner with a client.
Making purchases abroad, you will not have to waste time on currency exchange. The amount will be automatically converted into the currency of the country you are in. Business card is also a good tool for those, who try not to take cash with them. The money on the card will always be safe. After all, it’s so easy, if you lose your card, to block it just by calling the bank.
Shopping with a business benefit
A nice bonus that some business cards provide is the various discounts, promotions and offers that banks use to attract even more customers. You can:
– buy goods from bank partners on better terms,
– visit business lounges in airports for free,
– get cashback on purchases,
– and thereby reduce your business expenses.