Reasons Why You Should Get A Corporate Credit Card will be explained in this post. I believe good cash management is one of the key areas of running a business well. This is true in my opinion whether you are a new start up or a £100m+ turnover business. One way to manage cash effectively is to utilise all credit options available to you. One such option is a corporate credit card. These are my 5 reasons why I’d recommend getting a card but only if you make sure to pay the full statement amount each month.
5 Reasons Why You Should Get A Corporate Credit Card
In this article, you can know about 5 Reasons Why You Should Get A Corporate Credit Card here are the details below;
1. Boost your cashflow
It will boost your cashflow in the first month of usage as you can pay invoices that are due on the credit card and gain another 30-60 days credit. I’d recommend using this cash as a buffer in case you have any unexpected costs or a slow month for receipts. Also check Apps Like Powtoon
2. Pay the full statement
Pay the full statement balance when it is due and you wont be charged interest. This is essentially free credit for the business so make sure you utilise it as much as you can. However, be careful though as you don’t want to be buying items that you wouldn’t have if you didn’t have a credit card. Stay disciplined.
3. Higher credit limit
You are usually able to secure a higher credit limit on corporate credit cards than personal credit cards. I have seen new start ups being given as much as £8-10k which can really help with cashflow as it can be tough when you first go into business. Businesses that have been trading 2+ years may be able to get £30k+ depending on revenue etc.
4. Liability and tracking spend
Using a corporate credit shifts the liability to your business (you might be asked to sign a personal guarantee though) and its easier to track spend. How many times have you paid for something and forgot to recharge it back to your company.
5. Rewards and cashback
You can receive rewards or cashback using a corporate credit card. Take advantage of this benefit. You were going to have to pay the bill anyway. Some credit credit companies offer air miles or a % of your spend. Also check DB2 Interview Questions
Bonus point 6.…they link to your online accounting software
In most cases corporate credit cards can be linked to your accounting software which means every time you make a payment the feed will show in your accounts making it easier to reconcile.
Who do I recommend?
I would recommend using Capital On Tap. They tend to offer good credit limits even for start ups and they currently offer 1% cashback on all purchases. We have a promo code where both businesses will be rewarded with £75 credit. Click on it below if you feel this will help you. Just make sure to pay it off in full and you’ll reap the benefits of having a credit card.