6 reasons to buy a credit card for your business
Posted on Wednesday, July 18th, 2018 | By IndusInd Bank
Although SMEs and large corporations use business credit cards for their business purposes, these cards can be used by anyone who needs a separate business account. Using a credit card for your business needs can help you track business expenses and keep them separate from any personal account. Furthermore, using a credit card for business also helps in monitoring transactions and at the same times gives you the benefit of owning a credit card and various rewards associated with it. Here are the reasons how your business will benefit from owning a credit card:
- Financial Flexibility: Regular cashflows can be an issue for business owners, especially when the work is slow or when you are waiting for your clients to make payments. Having a credit card can provide a revolving line of credit that you can use to make an important business-related purchase. Sometimes, businesses may be faced with a shortage of funds or cash. A credit card for your business gives you access to emergency funds to keep the business afloat.
- Separate Business and Personal Expenses: Having a credit card for business allows you to keep track of your business and personal spending. The same makes record-keeping easier. With business credit cards, you can easily track your expenses, understand overheads and itemize essential and non-essential purchases. With a credit card statement, you can easily gauge how many expenses have been made towards your business or personal expenses, thereby helping with better informed financial decisions.
- Better Cash Flow: Whether you have just started your business or have been around for a while, it will take your business some time to get off the ground. A credit card provides great advantages. It can improve your cash flow when a client invoice is due. You can also limit the spending on your card if there are multiple users on your credit card. Since you can track all the expenses with credit card statements, you can limit any unnecessary spending made towards your business, thereby improving the cash flow even further.
- Offers & Rewards: Credit cards often come with extensive reward programs. Rewards such as rebates on airline tickets, fuel purchases, hotel bookings, etc. are provided to credit card users. Not only these, but you can also avail cashback options on various purchases from select partners. You can avail such rewards and offers with every card swipe and enjoy various discounts that come your way. Furthermore, rewards issued on employee credit card also go towards the business.
- Low Line of Business Credit: If you are in the initial phase of trying to set up your business, you need to consider building a good line of credit to bring credibility to your business. Running a business is always a risky affair, and there may be chances that market fluctuations will not necessarily work in favour of your business. In situations like these, having a financial cushion is necessary, and applying for a loan could be necessary. In such a situation, having a good line of credit will come handy as it could work in the same way as a credit score works. A lender is more likely to approve your business loan if there is a good line of credit through your credit card statement.
- Accounting Features: One of the best features of a credit card for your business is that it comes with accounting features such as downloadable purchase report, expense report, monitoring, account tracking, etc. These will let you take care of your business account in a more efficient way.
It is clear that having a credit card could be a great investment option for your business. With the option of availing various rewards and benefits and choosing from different credit cards, you can opt for the one that is best suited to your business requirements. For instance, IndusInd Bank’s Platinum Credit Card offers many privileges on fine dining, travel and lifestyle. As a Platinum Credit Cardholder, you can also enjoy a host of rewards along with quick redemption options. So, apply for a credit card for your business today with IndusInd Bank.